Q3 2023 / Strategy Update

Rising interest rates created some short-term volatility in equity markets, but our companies held up well and the quality of earnings we have in the portfolio allowed us to outperform on the downside, in our view.

On a trailing 12-month basis, we widened our lead over the S&P 500 by capturing strong performance off the bottom of the 2022 bear market.

We’ve now arrived at a time when earnings are expected to accelerate to the upside in the coming months, with continued earnings growth in 2024 as margins rebound after a period of softness. We’re confident this environment will benefit the companies in our portfolio.