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.
After piling back into AI stocks in late summer following a June–July selloff, investors reversed course in October as concerns once again took hold about how companies will fund the massive buildout and whether it will pay off. Energy and defensive stocks (consumer staples, utilities, and health care) posted strong returns in October. However, this strength was not enough to offset losses in technology shares, given their heavy representation in market-cap-weighted indices.
Democrats’ decisive wins in the House and Senate removed the risk of prolonged uncertainty tied to contested outcomes, sparking a broad rally the day after the election. However, AI infrastructure stocks came under pressure amid fears that the shift in the political landscape, especially at the state and local levels, could slow the AI buildout and the broader economic growth it has supported. We expect the buildout to continue, but a more measured pace could extend the cycle and ease inflation as the supply of chips, power, and equipment catches up with demand. And to the extent that heavy AI spending has been crowding out other investment, a slower pace could support more balanced GDP growth.
Rising earnings per share expectations and dividends contributed over 34 percentage points to the S&P 500 Index’s 11.8 percent total return year to date, while P/E multiple contraction subtracted about 22 percentage points. Following this valuation reset, the S&P 500 trades only slightly above its historical average, and market returns are likely to track earnings growth more closely from here. With earnings growth expected to remain strong, we believe U.S. stocks are well positioned for above-average returns in the year ahead.
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.