Since inception, the Navigator® SMID Cap Core U.S. Equity strategy delivered annualized gains of 8.03% gross (4.85% net) vs. 8.20% annualized gains for the Russell 2500 Index. In the second quarter of 2020, the Navigator® SMID Cap strategy had a gain of 20.43% gross (19.58% net) vs. 26.56% gain in the Russell 2500 Index. Positioning in Consumer Discretionary and Real Estate helped the relative performance while positioning in Healthcare and Information Technology hurt performance. Our holdings in Williams-Sonoma and LCI Industries helped performance in the quarter as positions in Walker & Dunlop and AMN Healthcare Services hurt performance. The value characteristics of the SMID Cap strategy remain compelling. Its current P/E of 15.8 is less than that of the S&P Mid Cap(23.0) or S&P Small Cap(34.4) indices with similar quality and business growth characteristics.

Top 5 Contributors

Ticker Quarter Ending June 30, 2020 Average Weight (%) Contribution to Return (%)
WSM Williams-Sonoma, Inc. 2.5 1.77
LCII LCI Industries 2.24 1.29
TMHC Taylor Morrison Home Corporation 2.02 1.2
SNX SYNNEX Corporation 2.15 1.19
CRL Charles River Laboratories International, Inc. 2.81 1.09

Top 5 Detractors

Ticker Quarter Ending June 30, 2020 Average Weight (%) Contribution to Return (%)
WD Walker & Dunlop, Inc. 0.07 -0.74
AMN AMN Healthcare Services, Inc. 1.8 -0.7
CASH Meta Financial Group, Inc. 0.58 -0.55
JCOM J2 Global, Inc. 1.86 -0.33
AIZ Assurant, Inc. 0.46 -0.22

The views expressed are those of the author(s) and do not necessarily reflect the views of Clark Capital Management Group. The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. There is no guarantee of the future performance of any Clark Capital investments portfolio. Material presented has been derived from sources considered to be reliable, but the accuracy and completeness cannot be guaranteed. Nothing herein should be construed as a solicitation, recommendation or an offer to buy, sell or hold any securities, other investments or to adopt any investment strategy or strategies. For educational use only. This information is not intended to serve as investment advice. This material is not intended to be relied upon as a forecast or research. The investment or strategy discussed may not be suitable for all investors. Investors must make their own decisions based on their specific investment objectives and financial circumstances. Past performance does not guarantee future results.
This document may contain certain information that constitutes forward-looking statements which can be identified by the use of forward-looking terminology such as “may,” “expect,” “will,” “hope,” “forecast,” “intend,” “target,” “believe,” and/or comparable terminology (or the negative thereof). Forward looking statements cannot be guaranteed. No assurance, representation, or warranty is made by any person that any of Clark Capital’s assumptions, expectations, objectives, and/or goals will be achieved. Nothing contained in this document may be relied upon as a guarantee, promise, assurance, or representation as to the future.
The CBOE Volatility Index, known by its ticker symbol VIX, is a popular measure of the stock market’s expectation of volatility implied by S&P 500 index options.
The S&P 500 measures the performance of the 500 leading companies in leading industries of the U.S. economy, capturing 75 of U S equities.
The volatility (beta) of a client’s portfolio may be greater or less than its respective benchmark. It is not possible to invest in these indices.
Index returns include the reinvestment of income and dividends. The returns for these unmanaged indexes do not include any transaction costs, management fees or other costs. It is not possible to make an investment directly in any index.
Past performance is not indicative of future results. This material is not financial advice or an offer to sell any product. Not every client’s account will have these exact characteristics. The actual characteristics with respect to any particular client account will vary based on a number of factors including but not limited to: (i) the size of the account; (ii) investment restrictions applicable to the account, if any; and (iii) market exigencies at the time of investment.
Clark Capital Management Group, Inc. reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs. The information provided in this report should not be considered a recommendation to purchase or sell any particular security, sector or industry. There is no assurance that any securities, sectors or industries discussed herein will be included in an account’s portfolio. Asset allocation will vary and the samples shown may not represent an account’s entire portfolio and in the aggregate may represent only a small percentage of an account’s portfolio holdings. It should not be assumed that any of the securities transactions, holdings or sectors discussed were or will prove to be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities discussed herein.
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