During the quarter, the small cap asset class underperformed large cap and mid cap stocks. Signs of weaker economic and employment growth emerged during the quarter and markets started pricing in an environment of weaker economic and corporate profit growth. This helped to cause a second quarter more data sensitive and volatile than the first. Trade conflicts with China remained unresolved, with markets uncertain about any potential tariff increases and their negative impacts. In such an environment, riskier small caps underperformed, as they tend to do. To offset these negative impacts, the Federal Reserve announced their intention to keep the economic expansion going with accommodative monetary stance as needed. This increased market optimism about a potential growth recovery during the latter part of the quarter and small cap stocks rallied back a bit. In the Saratoga Small Capitalization Portfolio, an underweight to Health Care and overweight to Financials helped relative performance, while an underweight to Technology and Industrials hurt relative performance.___________________
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.
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