International Small Cap Q3 Performance Commentary

Our strategy increased 2.3 percent (gross of fees) this quarter, exceeding the MSCI EAFE Small Cap Index, which decreased 11.0 percent. Year to date, we are -50.9 percent, versus -33.3 percent for the benchmark. After a frantic sell off in the first half of the year, the third quarter began with a breather. Almost two months of meaningful stock gains were propelled by the market’s reasonable confidence that central banks around the world could defeat inflation and normalize two decades of extraordinarily low interest rates without sparking a recession.