• 2023 Year-End Letter to Investors

    The U.S. equity market’s performance was dominated by its largest constituents during 2023.  Looking at the annual performance of an equal weighted index of large stocks compared to a cap-weighted one shows that 2023 was the second worst year for the equal weight index going back to 1930!

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  • Concentration Risk (2023)

    May 27, 2023: The largest five stocks in the S&P 500 collectively have increased in value this year by $2.8 trillion, which is 49% above where they began the year.  The level of concentration in the S&P 500 as measured by the over-24% total weight of just these five stocks is greater than it has ever been.

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  • 2023-1Q Letter to Investors: Crosscurrents from Big Tech & Banks

    April 14, 2023: Equity markets rose to start 2023 but experienced crosscurrents from very concentrated gains among a select few of the biggest stocks and weakness in the bank sector. In this environment, our U.S. Fundamental Stability & Value (US FSV) strategy lagged the S&P 500 while comfortably outpacing its value benchmark.

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  • Year-End Letter to Investors: Value Mattered in 2022

    January 11, 2023: Elevated inflation and rising rates are likely to cause economic activity to continue to moderate and even possibly contract, but from a longer-term perspective, this is not unusual and the economy and corporations have weathered much more difficult circumstances in the recent past.

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  • 2022 3Q Letter to Investors: Races are Won in the Turns

    October 14, 2022: The title of this letter is an auto racing adage that aptly applies to investing. It highlights that much more than in the straightaways, it is in the turns, both entering and coming out of them, where drivers differentiate themselves.

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  • 2022 2Q Letter to Investors: YTD Sell-Off Drives Rotation

    July 19, 2022: On measures of free cash flow, stocks have gotten notably less expensive in the first six months of 2022, and the first chart highlights the free cash flow yield now expected for both the U.S. FSV strategy and the S&P 500.

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  • Equity & Bond Valuations & Inflation

    May 21, 2022: Amid an uncertain economic future, equities offer an attractive advantage of being able to pass through inflationary costs over the longer-term, but their present relative valuation against bonds does not seem to fully capture the benefit as it did historically.

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  • 2022 1Q Letter to Investors: Differing Drivers of Returns

    April 11, 2022: In the first quarter of 2022, each of Distillate’s strategies (U.S. FSV, Intl. FSV, and Small QV) outperformed their primary benchmarks.  Crucially, performance both recently and over prior years has resulted from a very different driver of price gains compared to the market.

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  • 2021 Year-End Letter to Investors: Value Below the Surface

    January 16, 2022: Distillate’s U.S. Fundamental Stability & Value (U.S. FSV) strategy outperformed its S&P 500 and iShares Russell 1000 Value ETF benchmarks again in 2021.  For a further discussion of performance, portfolio changes, and more, please see our Year-End 2021 letter.

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