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.
Market breadth narrowed in August as investors again retreated into a handful of megacap tech stocks amid policy uncertainty, a fractured AI trade, and seasonally thin market liquidity. Just seven stocks—Nvidia, Microsoft, Tesla, Micron, Palantir, Apple, and Salesforce—generated 80 percent of the S&P 500’s August gain. Meanwhile, the share of constituents outperforming the index fell to 37 percent in August, down from 61 percent in July and 66 percent in June. Despite the deterioration in breadth, we expect market participation to broaden again as the earnings growth advantage of the megacap leaders continues to narrow relative to the rest of the index and as investors gain greater clarity on policies.
A key policy uncertainty is the path of interest rates. The Treasury yield curve flattened in August as sticky inflation data and hawkish jawboning from Fed Chair Warsh raised expectations for a fed funds rate hike in September. Even so, we believe the Fed will remain on hold and that its next move will be a rate cut in 2027. We expect inflation to moderate as PCE data are revised lower, tariff effects fade, and energy prices ebb, with core PCE potentially falling below 3.0 percent by year-end and continuing toward the Fed’s 2.0 percent target thereafter.
Economic, policy, and geopolitical crosscurrents could once again heighten market volatility, making diversification especially important. Following the recent pullback in defense and industrial stocks, we see compelling opportunities and are adding to positions. We remain bullish on AI but have become more selective as growth slows in some subsegments. We also continue to favor software stocks despite their strong rebound, as valuations remain attractive.
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.