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.
Upward earnings revisions continue to underpin stock market returns. Almost 85 percent of S&P 500 constituents that have reported June-quarter earnings thus far have beaten the consensus estimate, well above the prior 10-year average of 70 percent. Bottom-up projections for the S&P 500 Index over the next 12 months now imply year-over-year earnings growth of 23.7 percent, up from 18.9 percent at the end of June. The S&P 500’s year-to-date return of 10.1 percent breaks down to a 24.4 percentage point contribution from earnings and dividends, with a drag of 14.3 percentage points from price-to-earnings multiple contraction.
On average, the S&P 500 Index has traded sideways in the months leading up to the midterm elections. Prediction markets currently imply a near-90 percent probability that the Democrats will win the House of Representatives, while Republicans have a modest edge (54 percent) in the Senate. Either way, the S&P 500 Index has historically delivered its strongest gains in the third year of the presidential election cycle (i.e., the 12 months following the midterms), producing a median postwar return of 18.1 percent. We suspect the fear of missing out will keep the underlying bid for stocks firm in the quarters ahead.
As for portfolio strategy, we remain positive on the prospects for technology stocks. Nonetheless, AI momentum is being challenged on several fronts (e.g., “not-in-my-backyard” pushback on data centers, Chinese AI models, elevated memory prices), likely leaving the space vulnerable to bouts of extreme volatility. Financials remain a favored sector, driven by solid loan growth, a stable credit environment, and strong capital markets activity. Favorable PMI data also supports our positive view of industrials as activity broadens beyond data centers. We remain cautious on consumer discretionary stocks due to slow job growth and sticky underlying inflation.
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.