Markets began to discount an economic slowdown during the first quarter, and this was especially noticeable in your portfolio during the month of March. For the quarter, the HSMP Composite declined 4.2% post-fee, and the S&P 500 Index dropped 4.3%.
We also began to see a marked diminution of enthusiasm for more favored technology names during the period. The Magnificent 7 (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla) along with many other technology/artificial intelligence (AI) favorites, were under pressure in the quarter and saw multiples compress notably. Valuations for your portfolio, the Magnificent 7, AI related companies, and the S&P 500 Index at large fell as sentiment waned (in part due to anticipation of forthcoming tariff announcements).
To read more, download the full First Quarter 2025 Investment Perspective.