The third quarter of 2025 presented a complex landscape for investment performance, with notable shifts influenced by technological advancements and traditional market sectors. During this period, our portfolio significantly benefited from strategic allocations to leading artificial intelligence (AI) companies, particularly Broadcom and Oracle, which emerged as key contributors to our overall gains.
However, not all sectors performed uniformly. Our deliberate overweights in consumer staples, real estate, and materials, while typically stable, acted as a drag on performance during this quarter. These sectors, often seen as defensive plays, did not keep pace with the growth observed in more dynamic areas like technology. As we approach the final quarter of the year, the economic forecast remains uncertain. While the economy continues to exhibit resilience, a prolonged government shutdown could introduce considerable volatility and impact market stability.
Amidst these fluctuating market conditions, a steadfast commitment to robust investment strategies and a forward-looking perspective remains crucial. Navigating potential economic headwinds effectively requires meticulous analysis and strategic re-evaluation, ensuring that portfolios are well-positioned to capitalize on opportunities while mitigating risks, thereby fostering sustained growth and stability.