Growth Fund
Commentary
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Manager Commentary as of 12/31/10 The fourth quarter of 2010 saw full fruition of the issues which began or threatened during the third quarter. As expected, the Fed enacted further quantitative easing (QE2) in an effort to again stimulate a still-sluggish economy. Mid-term elections ushered in a more business-friendly group of lawmakers, and President Obama appeared ready to move to a more centrist position in order to work with the new Congress. Markets reacted favorably to both developments, viewing them as stabilizing forces in a heretofore rocky and unpredictable business climate. Our outperformance in the quarter is due largely to stock selection, particularly in pro-cyclical sectors (Consumer Discretionary, IT, Energy and Industrials). These sectors enjoyed a bounce during the fourth quarter as more cyclical stocks responded to encouraging economic and political news. Our slight overweight and stock selection in Health Care held performance down as these names generally have shown lackluster growth in 2010. Click here for definitions. |

