Summary

• With this backdrop, the S&P 500 Index declined 4.3% in the first quarter, though the Russell 3000 Value increased 2.2%.
• With the conflict raging, oil prices rose dramatically, causing Brent crude to climb from $61 per barrel at the beginning of the year to $127 at the end of the quarter.
• The Value Portfolio Managers have long discussed secular tailwinds for aerospace and defense stocks; those dynamics are only reinforced by this conflict.
• Global M&A value in the first quarter was $1.2 trillion, up 27% from last year, and the strongest first quarter since 2021.
• Modine Manufacturing Company announced it will spin and merge its vehicle applications segment, Performance Technologies, with auto supplier Gentherm.

War and Peace

Following tense negotiations about Iran's nuclear program amid widespread street protests and brutal government repression, the United States launched Operation Epic Fury on February 28. In conjunction with Israel, the U.S. used a barrage of Tomahawk