Founded in 1981, Sit Investment Associates is a privately held, multi-billion-dollar asset management firm that provides focused investment management expertise, competitive long-term results, and unparalleled service to our clients.
Sit Investment Associates is one of the largest independent, minority-owned investment firms in the U.S. For over 40 years our success has been built on long-term client relationships, which in turn are built on a foundation of trust, commitment, understanding, and expertise. We take pride in serving as a true extension of our clients’ operations. Our highly experienced and knowledgeable investment professionals work directly with clients providing highly individualized service in an increasingly challenging economic and financial environment.
We employ a disciplined, fundamental, research-driven investment process guided by highly experienced and knowledgeable senior investment professionals who interact directly with our clients. As a result, our clients can count on the firm to achieve highly competitive results, coupled with exceptional client service.
We view investing as the practice of applying a consistent philosophy and collaborative decision-making process driven by disciplined, fundamental research. Our broad top-down analysis in tandem with extensive bottom-up analysis enables us to identify, assess and understand the securities in which we invest.
Artificial intelligence (AI) was once again the driving force behind the equity market’s strong gains in October. Just six AI-connected stocks – Nvidia, Apple, Amazon, Alphabet, Advanced Micro Devices, and Broadcom – contributed 272 basis points to the S&P 500 Index’s one-month return of 2.34 percent and 386 basis points to the Russell 1000 Growth Index’s one-month return of 3.63 percent. Excluding those stocks, the S&P 500 and Russell 1000 Growth indices declined by 0.61 percent and 0.47 percent, respectively. Year to date, the S&P 500 Index returned 17.52 percent, while the Russell 1000 Growth Index returned 21.50 percent.
Seven stocks, all of which are deeply tied to AI, now account for a record 36 percent of the S&P 500 Index’s total market value. The broader universe of 41 AI-related stocks constitutes 46 percent of the S&P 500 Index and 67 percent of the Russell 1000 Growth Index. For better or for worse, the overall stock market and the economy have become inextricably linked to a single, but possibly transformative, innovation. Robust AI-related capital spending, combined with a positive wealth effect on consumer spending from the rally in AI stocks, has sustained GDP growth. The expected productivity gains from AI will also become an increasingly crucial driver of economic growth as labor force growth slows.
We continue to prioritize diversification across our portfolios amid still-elevated uncertainty and the economy’s reliance on AI investment and spending by high-income households. Nonetheless, looking ahead to 2026, we see reasons to be optimistic. Trade tensions are likely to ease, and pro-growth fiscal measures, particularly those that incentivize capital investment (beyond just AI), are poised to unlock the next phase of economic expansion. At the same time, we remain mindful of risks. Current elevated equity valuations suggest that investors are pricing in a multi-year earnings expansion. Yet, stubborn inflation, possibly exacerbated by lower immigration, could prompt the Fed to pivot, potentially cutting the business cycle short.
Outside of key holdings directly tied to AI, we are focused on derivative plays on the data center/power themes, favoring industrials, E&C firms, and pipeline developers. The financials sector also remains compelling, with banking fundamentals buoyed by loan growth, net interest margin expansion, M&A activity, deregulation, and robust capital returns. In addition, we are adding select healthcare stocks, particularly those in the medical devices sector, which we expect to remain resilient in the face of any economic softness.
For our latest full Global Investment Outlook & Strategy Update, download the pdf document.
Our broad array of investment products encompasses the complete risk spectrum – from capital preservation to capital appreciation—enabling us to meet our clients’ entire range of investment objectives.
We are committed to a disciplined, fundamental, research-driven investment process. As a result, clients can count on the firm to achieve highly competitive results in tandem with exceptional client service.
Sit Mutual Funds is a family of mutual funds covering the entire risk spectrum, from stability of principal to high growth and grounded in our well-defined, hands-on management style and disciplined investment process.