During the fourth quarter of 2017, a positive quarter for equities in general, small-cap stocks largely underperformed both large-cap and mid-cap stocks. Economic growth and job creation remained strong during the quarter, and the Federal Reserve raised both interest rates and expectations for future monetary tightening. Congress passed a comprehensive tax reform law that was viewed by the markets as potentially boosting corporate earnings and stimulating the US economy further. Optimism regarding the stimulative effects of tax reform and the continuation of strong economic growth helped spur many Consumer Discretionary and Industrial companies to outperform other sectors among small-cap stocks. The Saratoga Advantage Trust Small Cap Portfolio’s overweight to these sectors contributed to relative performance. Concurrently, investors rotated out of the Technology sector, which was viewed as benefiting less from tax reform. Our overweight to Technology names detracted from the Portfolio’s relative performance.
If US economic growth acceleration continues, while also avoiding runaway inflation, growth-sensitive small-cap stocks may continue to see strong gains as investors maintain a high appetite for risk. This could lead to attractive relative returns for small-cap stocks looking forward.____________________
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.