For the five years ending March 2020, the Navigator® Small Cap Core U.S. Equity strategy delivered annualized loss of -1.81% gross (-4.72% net) versus -0.25% loss for the Russell 2000. For the first quarter of 2020, the strategy had a loss of -32.14% gross (-32.73% net) vs a 30.61% loss for the Russell 2000 Index.

Positioning in Materials and Communication Services helped relative performance while positioning in Information Technology and Healthcare sectors acted as a drag. Our higher quality holdings such as IDACORP and Sprouts Farmers Markets helped performance in the quarter as positions in Allegiant Travel Company and RH hurt performance.

The value characteristics of the strategy remain compelling. Its current P/E of 11.8 is far less than that of the S&P Small Cap (17.1) and Russell 2000 with favorable quality characteristics.

Top 5 Contributors

Ticker Quarter Ending March 31, 2020 Average Weight (%) Contribution to Return (%)
IDA IDACORP, Inc. 0.18 0.34
SFM Sprouts Farmers Markets, Inc. 0.7 0.31
UTHR United Therapeutics Corporation 1.78 0.13
TGNA TEGNA, Inc. 1.21 0.13
HRC Hill-Rom Holdings, Inc. 0.09 0.08

Top 5 Detractors

Ticker Quarter Ending March 31, 2020 Average Weight (%) Contribution to Return (%)
ALGT Allegiant Travel Company 2.04 -1.65
RH RH 2.73 -1.52
CRMT America's Car-Mart, Inc. 2.51 -1.49
MTG MGIC Investment Corporation 1.92 -1.36
PBF PBF Energy, Inc. Class A 1.22 -1.31
Source: Factset. For illustrative purposes only. Past performance does not guarantee future results. The holdings identified do not represent all of the securities purchased, sold or recommended for advisory clients. In the chart above, “weight” is the average percentage weight of the holding during the period, and “contribution” is the contribution to overall performance during the period. To obtain the calculation methodology and a list showing every holding’s contribution to the overall composite during the period, contact:

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.
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.
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 Russell 2000 Index measures the performance of the 2000 smallest U.S. companies based on total market capitalization in the Russell 3000, which represents approximately 11% of Russell 3000 total market capitalization..
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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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