Second Quarter 2024 Client Investor Letter

The height of summer has arrived in Princeton, and we are grateful for functioning air conditioning and the cooling economic data that has positively impacted our client portfolios, as detailed in the attached investor letter.

In our letter, we discuss:
• Moderating employment growth and inflation allows the Fed to cut rates, increasing the likelihood of an economic “soft-landing,” which is beneficial for the markets.
• The stock market is reaching new highs, but only a handful of stocks have driven most gains. We detail the extremely narrow leadership, its associated risks, and how empirical data suggests stronger returns ahead.
• We revisit our approach to investing in the artificial intelligence (AI) revolution, a significant driver of market returns and our managed equity portfolios.
• In a higher interest rate environment, we are gradually extending bond maturities, shifting from “ultra-short” to “short” fixed income portfolio durations.

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