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.
The S&P 500 Index rallied by almost +16 percent from its year-to-date low on April 8 through the end of May as President Trump repeatedly backed away from his more onerous tariff threats. With a worst-case tariff scenario likely averted, the risk of a self-inflicted recession has receded. Nonetheless, the President’s erratic policymaking and subsequent federal court injunctions, as he pushes the boundaries of executive authority to achieve his agenda, have kept economic policy uncertainty near a record high. The persistent uncertainty is stifling growth prospects as businesses reduce capital spending and hiring intentions until clarity improves. Consumer spending has remained resilient but is poised to downshift, possibly sharply, as unemployment rises, wage growth slows, and higher inflation dents real incomes.
We suspect many investors view 2025 as a “wash” (or a transition year), and are positioning for better growth prospects in 2026 and beyond, with upside from fiscal stimulus, monetary easing, deregulation, trade deals, and a possible resurgence in capital spending. At the same time, tariffs and immigration restrictions may cap real GDP growth potential at sub-2.0 percent, with anything above that adding to inflationary pressures in the absence of better productivity. In addition, with the equity risk premium near historic lows (and U.S. equity market capitalization at nearly 200 percent of GDP), the market is ill-prepared for major economic disappointments or another exogenous shock.
We remain focused on picking stocks with secular drivers that can outperform regardless of the stage of the business cycle. We continue to add to positions in select software stocks, many of which remain below prior highs. Solid demand for productivity-enhancing software will continue even as economic growth slows. We also continue to favor banks. Loan growth, net interest margins, and credit remain stable, and we expect banks to benefit from a looming pick-up in M&A activity and capital relief via deregulation. Moreover, portfolio holdings emphasize industrial companies in power, aerospace, and automation that possess strong fundamentals. Lastly, we are underweight consumer stocks – sentiment indicators are under pressure, job growth is slowing, and real wage growth is poised to decline.
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.