- The portfolio generated attractive absolute and relative returns in the Q1 global market rebound after providing strong downside protection in the Q4 market sell-off
- Stock selection was additive across most sectors despite the strength in small cap and higher beta companies; sector allocations also contributed positively to results
- Selection in the Consumer Discretionary sector contributed most to the portfolio’s outperformance while selection in Industrials and Consumer Staples detracted modestly
- A new position in Microsoft was initiated
- Additional shares of Shoprite were purchased on weakness, and we took advantage of strength to trim positions in SAP, New Oriental Education, Alibaba, MercadoLibre, Autodesk, Salesforce.com, and FleetCor
The opinions expressed herein reflect the opinions of Sustainable Growth Advisers, LP and are subject to change without notice. Past performance is no guarantee for future results. This information is supplemental and complements a full disclosure presentation that can be found with composite performance. The securities referenced in the article are not a solicitation or recommendation to buy, sell or hold securities. This commentary is provided only for qualified and sophisticated institutional investors.
Results are presented gross and net of management fees and include the reinvestment of all income. The Net Returns are calculated based upon the highest published fees. The net performance has been reduced by the amount of the highest published fee that may be charged to SGA clients, 0.90%, employing the Global Growth equity strategy during the period under consideration. Actual fees charged to clients may vary depending on, among other things, the applicable fees schedule and portfolio size. SGA’s fees are available upon request and also may be found in Part 2A of its Form ADV. Upon request, free of charge, SGA can provide a list of all portfolio holdings held in SGA’s Global Growth portfolio for the year. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. SGA’s earnings growth forecast data is based upon portfolio companies’ Non-GAAP operating earnings.