The Saratoga Large Cap Value Portfolio posted strong performance during the fourth quarter of 2016. The Portfolio’s outperformance during the quarter was driven by sector strength in Financials and Industrials, as well as an underweight position in Consumer Staples, which lagged the market. We expect certain of the Financials we own in the Portfolio to benefit from higher interest rates. Healthcare stocks were a drag on performance during the quarter, likely from continued political pressures on drug prices and tax loss selling. Since quarter-end, these stocks have outperformed the broader market, aided, in our view, by their significant undervaluation and strong fundamental outlooks.
Donald Trump’s upset over Hillary Clinton, and Republican control in both the Senate & House, has fueled expectations of significant pro-growth reflationary proposals that include increased infrastructure spending, less regulation (specifically in the Financial and Energy sectors), and meaningful tax reform for corporations and individuals. We remain optimistic about the outlook for the economy.
Information contained herein was obtained from recognized statistical services and other sources believed to be reliable and we therefore cannot make any representation as to its completeness or accuracy. Any statements not of a factual nature constitute opinions which are subject to change without notice.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Saratoga Advantage Trust mutual funds. This and other important information about the Saratoga Advantage Trust's funds is contained in the prospectus, which can be obtained by clicking here, or by calling (800) 807-FUND, and which should be read carefully before investing. The Saratoga Advantage Trust's funds are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Saratoga Capital Management, LLC is not affiliated with Northern Lights Distributors, LLC. 1/16 © Saratoga Capital Management, LLC; All Rights Reserved.