First Quarter 2025 Client Investor Letter

Given the recent market volatility, we wanted to share our quarterly investor letter earlier than usual, even as we continue to monitor and assess the evolving and unpredictable global trade policies. We understand the current volatility is unsettling, but it also reaffirms investment portfolios are built to endure shocks and uncertainty. And while abrupt portfolio declines are difficult, it’s important to remember that losses remain unrealized unless investments are sold. History shows that markets will recover to future all-time highs, and we remain confident that better days lie ahead.

We will continue to monitor developments closely and position portfolios thoughtfully, focusing on quality, diversification, and long-term goals.

We are available for you and look forward to following up personally. Please do not hesitate to call!

In our letter, we discuss:

• The outperformance of international stocks and the underperformance of U.S. Tech stocks highlight the benefits of global diversification.
• The words “uncertain & unpredictable” appear 15 times in our writing—the announced tariffs were higher than expected, and the situation remains fluid.
• Market corrections, while unpleasant, are a normal part of investing and often occur in otherwise positive years (supported by 150 years of historical data). While policy uncertainty will slow growth in the near term, the strong foundation of the U.S. economy should help prevent a prolonged recession.
• The impact of policy uncertainty has been reflected in declining confidence among consumers, executives, and investors. However, history shows investors who take a positive approach during extreme pessimism are often rewarded over the next 12 months.
• Portfolio adjustments—including consistently focusing on high-quality stocks and, more recently, increased exposure to stable sectors—helped mitigate declines in our long-term high-conviction growth investments. Following the sharp pullback in certain technology-related industries, we remain confident in our holdings and see new opportunities.
• Our fixed income strategy remains centered on high-quality bonds with shorter durations, providing stability for client portfolios during periods of market volatility.

Please contact us if you want a copy of the entire letter.