U.S. stocks rose during the period, led mostly by cyclical sectors, while defensive sectors lagged the broader market.
Our portfolio outperformed the benchmark this quarter. Our airline holdings were some of our largest contributors to performance.
There is still a pronounced valuation gap between those defensive areas of the market and cyclical stocks with more volatile earnings. We believe our portfolio could benefit if investors continue to rotate out of some of the more defensive areas of the market, as they did this quarter.