Summary

• The Virtus Ceredex Large-Cap Value Equity Fund gained +2.48% (Class I) for the quarter, compared to the Russell 1000® Value Index's return of +2.10%.
• Chevron outperformed, supported by broad strength in the energy sector, driven by higher oil prices and significant production base outside the Middle East.
• Western Digital continued to benefit from the longer-duration investment cycle in compute memory as the ongoing memory shortage appears unlikely to be resolved in the near term.
• The Fund sold Apollo Global Management amid concerns around its exposure to software investments perceived as vulnerable to AI-driven disintermediation.
• The Fund purchased industrial engineering components manufacturer ITT, which is expected to capture meaningful synergies from its acquisition of SPX FLOW following effectively managed restructuring efforts.

Market Review

Large-cap value stocks experienced a strong start to the first quarter, continuing to benefit from a broadening of market leadership beyond mega-cap technology and AI-driven names. Investors rotated into more attractively valued cyclical sectors, where