Summary

• The Wasatch Global Select Fund—Investor Class finished the period down -8.14%, underperforming the MSCI AC World Index which fell -3.20%.
• The Wasatch Global Select Fund was overexposed to companies with perceived AI disruption risk, which hurt relative performance as investors rotated capital out of asset-light businesses.
• Hamilton Lane, Inc. (HLNE) was the largest detractor as concerns regarding private credit intensified and pressured valuations across publicly traded private market managers.
• ASPEED Technology, Inc. (ASPEF) was the top contributor, benefiting from strong demand for the testing, connectivity and semiconductor-related technologies required to support the expansion of AI infrastructure.
• The Fund's industrial companies that sell to the aerospace and defense industries may see increased demand for their products as a result of the conflict in Iran.

Overview

Global equities were volatile in the first quarter, as shifting investor sentiment drove sharp rotations within the market. Enthusiasm around artificial intelligence continued to support companies tied to the infrastructure buildout to support these technologies, but each