Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
The Small Cap portfolio returned +21.0% gross and +20.8% net in Q1 vs. the Russell 2000 Growth Index (+17.2%) – a relative outperformance of approximately +3.8% and +3.6%, respectively.
Both stock selection and sector allocation contributed positively, with the former contributing nearly +3.8%.
When the markets sold off in Q4 the “stable” growth names in our portfolio outperformed and added value (they were down - 19.9% in Q4 vs. -21.7% for the benchmark).
In Q1, when the markets rebounded sharply, it was the turn of the “emerging” growth companies in the portfolio to carry the burden and add value, which they did handsomely (+47.6% vs. +17.1% for the benchmark).