3Q2024 - Global Growth Commentary

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• Volatility re-emerged during the third quarter, marking a departure from the first half of 2024. The initial catalyst for the volatility was perhaps a better-than-expected U.S. Consumer Price Index report (indicating lower inflation) in mid-July, boosting market confidence that the U.S. Federal Reserve would likely embark on a rate-cutting cycle sooner rather than later. 
• Market enthusiasm from July's positive CPI report spurred a rotation out of mega cap technology and "AI winners" into other market segments, many of which lagged in the year's first half.
• In the third quarter, the top relative and absolute contributors to the Portfolio's performance were MSCI, SAP, and AON. 
• The largest relative and absolute detractors were Alphabet, Amazon, and Novo Nordisk. 
• We initiated a new position in Oracle and did not eliminate any positions. We added to positions in Shopify, Globant, and Paycom Software and trimmed positions in SAP, ADP, and Microsoft.
• While our approach may be more akin to the tortoise than the hare, we view volatility as an ally and an opportunity to go on offense when possible. 
• Other than isolated areas of weakness, our Portfolio companies continue to perform roughly in line with our growth expectations. Overall, we are encouraged by their current performance and even more so by their long-term resilience and ability to drive faster growth with less risk.

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