In the first quarter, the macroeconomic environment was characterized by persistently strong economic growth alongside frustratingly resilient inflation. Although small caps had regained some ground relative to large caps at the end of 2023, the first quarter once again saw large caps outperform their smaller counterparts. This may have resulted from a modest resurgence in inflation or possibly the continued influence of market momentum. Regardless of the underlying causes, these conditions have remained a focal point for us. Accordingly, we made several strategic adjustments during the first quarter that warrant specific mention: