New York, NY – The U.S. equities market in the first quarter of 2024 saw significant strength, driven by enthusiasm for artificial intelligence, positive economic indicators, and expectations of rate cuts from the Federal Reserve. U.S. market indexes hit record highs during this period, with the Federal Reserve opting to maintain interest rates steady while monitoring economic developments.

The portfolio reported a return of 10.31% for the quarter, outperforming the Russell 1000® Value Index, which posted a 8.99% return. General Motors, Kroger, and KKR were top contributors to the portfolio, while Charter Communications, Warner Bros. Discovery, and Liberty Broadband were among the top detractors.

In terms of portfolio positioning, new positions were initiated in companies such as Delta Air Lines, Deere & Company, and Kenvue. Companies like Amazon, HCA Healthcare, Hilton Worldwide, Meta Platforms, and PHINIA were eliminated from the portfolio during this period.

Looking ahead, while keeping an eye on the macroeconomic landscape, the focus remains on fundamental analysis at the company level when building portfolios. Investments are made in undervalued businesses with potential for growth, strong management teams, and sustainable returns.

The information presented in this report represents the views and investments of the portfolio managers and Harris Associates L.P. as of the date of publication and is subject to change. Forward-looking statements are based on current expectations and may be subject to investment risks. The Russell 1000® Value Index, which measures the performance of large-cap value companies in the U.S., was used as a benchmark. ©2024 Harris Associates L.P. All rights reserved.