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.
Broad large-cap equity indices continued to march higher through the first half of July. However, they slumped in the second half of the month as investors, motivated by the rising odds for interest rate cuts, shifted from crowded mega-cap artificial intelligence (AI) plays to bond proxies and small-cap stocks. In addition to the style rotation, concerns about AI’s longer-term earnings and ROI potential also pulled down the Magnificent Six stocks.
The pandemic’s after-effects and breakneck immigration growth have contributed to many distortions, making economic indicators less dependable. However, commentary from a broad swath of consumer-oriented companies reveals that financial woes are moving up the income ladder and that households are cutting back. Spending cuts could trigger a negative feedback loop that exacerbates any job losses and pushes the economy into recession.
We generally believe recession fears are overblown but expect equities to remain volatile as investors assess the trajectory of the economy and the fed funds rate against the uncertain political backdrop. In terms of portfolio strategy, we added to select positions in healthcare and AI-related tech stocks after the recent selloff. Industrial stocks are also more attractive following the correction, especially those levered to power generation, infrastructure, and aerospace. On the other hand, we are avoiding retailers and other consumer cyclical stocks as spending is poised to soften on slower job growth, tighter credit, and depleted excess savings.
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.