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.
U.S. equity indices, notably growth-oriented indices, posted strong returns again in May, driven almost entirely by a broad-based rally in technology stocks. Three of the eleven GICS sectors in the S&P 500 Index—information technology, consumer discretionary, and healthcare—delivered positive returns in May. However, excluding Tesla, Amazon, and Eli Lilly, consumer discretionary and healthcare returns would have been negative. In contrast, information technology soared 16.0 percent, driven by further evidence of an AI-related inflection in demand and by strong earnings from infrastructure and security software providers that refuted much of the bear case.
As equity indices hit new highs, 10-year U.S. Treasury yields continued to rise amid inflation worries. The Strait of Hormuz has remained effectively closed for nearly 14 weeks, choking off about 15 percent of global oil supply. Ample global crude and product stocks prior to the U.S.-Iran conflict have helped suppress Brent oil prices, which have ebbed to the low $90s more recently amid hopes for an agreement to open the strait. Yet, should the strait remain closed, oil prices could surge, with mid-to-late summer widely viewed as a period when global oil and product stocks are depleted to critical thresholds.
We expect the stock market to broaden ultimately, though it will likely require a resolution on the Strait of Hormuz issue and lower energy prices. We believe that industrials and financials are best positioned to rebound meaningfully if this occurs. Transportation stocks are also attractive (as pricing is rising across all modes), as are defense stocks amid the current geopolitical backdrop.
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.