shapecharge
Market Overview
US equities surged for the third consecutive quarter as the S&P 500 Index (SP500, SPX) registered a series of record highs. Performance was narrowly driven by a select group of mega-cap technology companies, resulting in a significant performance differential between the market-cap weighted S&P 500 Index and the equal-weighted version of the Index, as well as the considerable outperformance of growth stocks vs. their value counterparts. Annualized first- quarter GDP growth was revised lower to 1.4%, down from a blistering 3.4% pace in the fourth quarter, and economic data released during the quarter suggested that the economy continued to gradually moderate. Stubborn inflation and a still-tight labor market tempered expectations for interest-rate cuts by the Federal Reserve this year.
Performance Summary
Security selection contributed to performance driven by strong selection in healthcare, financials, and communication services. This was partially offset by weak selection in consumer staples, energy, and information technology.
Sector allocation, a residual of our bottom-up stock selection process, modestly detracted from performance driven by an overweight to healthcare and an underweight to information technology. This was partially offset by underweights to energy and real estate.
Top relative contributors included Broadcom (AVGO, information technology), a lack of exposure to Intel (INTC, information technology), and Alphabet (GOOG,GOOGL, communication services).
Positioning & Outlook
As the 2024 US election cycle comes into focus, policy positioning regarding fiscal deficits, tax policy, and trade are likely to be more relevant to financial markets in the second half of 2024. Our focus remains on stock selection being the driver of portfolio returns and, in that context, we've found more individual opportunities in broader parts of the market outside of technology including industrials, energy, and real estate.
At the end of the period, our largest overweights were to healthcare and utilities. The largest underweights were to consumer staples and real estate.
Top Ten Holdings (%) | |
Microsoft Corp. (MSFT) | 7.59 |
Apple, Inc. (AAPL) | 7.12 |
Nvidia Corp. (NVDA) | 6.42 |
Amazon.com, Inc. (AMZN) | 5.06 |
5.03 | |
Meta Platforms, Inc. (META) | 2.87 |
Eli Lilly & Co. (LLY) | 2.61 |
Broadcom, Inc. (AVGO) | 2.60 |
JP Morgan Chase & Co. (JPM) | 2.45 |
UnitedHealth Group, Inc. (UNH) | 2.07 |
Percentage Of Portfolio | 43.82 |
Holdings and characteristics are subject to change. Percentages may be rounded. | |
| NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Morningstar® Category Large Blend Lipper Peer Group Large-Cap Core Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For more current performance information to the most recent month ended, please visit Home. Share Class Inception: A, Y - 4/30/98; F - 2/28/17; I - 3/31/15; R3, R4, R5 - 12/22/06; R6 - 3/31/15. Performance shown prior to the inception of a class reflects performance and operating expenses of another class(es) (excluding sales charges, if applicable). Had fees and expenses of a class been reflected for the periods prior to the inception of that class, performance would be different. Since inception (SI) performance is from 4/30/98. Performance and expenses for other share classes will vary. Additional information is in the prospectus. Only Class A assesses a sales charge. S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks. Indices are unmanaged and not available for direct investment. 1 Expenses as shown in the Fund's most recent prospectus. Important Risks: Investing involves risk, including the possible loss of principal. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies. Investors should carefully consider a fund's investment objectives, risks, charges and expenses. This and other important information is contained in a fund's full prospectus and summary prospectus, which can be obtained by visiting Home. Please read it carefully before investing. Mutual funds are distributed by Hartford Funds Distributors, LLC (HFD), Member FINRA. Advisory services are provided by Hartford Funds Management Company, LLC (HFMC). Certain funds are sub-advised by Wellington Management Company LLP. HFMC and Wellington Management are SEC registered investment advisers. HFD and HFMC are not affiliated with any sub-adviser. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
