Market Summary
The U.S. economy exhibited resilience in the first quarter of 2024, exceeding expectations and contributing to signs of global economic stabilization. Reported inflation figures declined from 9% to 3% on a year-over-year basis, in part due to the Federal Reserve’s series of rate hikes that brought the Fed Funds rate from 0.25% to 5.50% in about fifteen months. While inflation has come down on a rate-of-change basis, it remains structurally high as the market focuses on inflation’s directionality and subsequent Federal Reserve monetary policy decisions.
The Fed’s implied transition to an easing stance after rapid tightening has notably relaxed financial conditions and boosted investor confidence, particularly revitalizing cyclical sectors through the second half of 2023 and into 2024. Large cap stocks outperformed during Q1 on these rate cut expectations, while our view is that stubbornly high inflation will make it difficult to cut rates in the near-term despite any political pressure the Fed may be feeling during an election cycle. Inflation remains high globally, not just here in the U.S. The Fed’s balance sheet expanded from $1 trillion to $9 trillion during the zero-interest-rate environment of the 2010s and through the Covid-19 pandemic, and while they have reduced it to about $7.5 trillion today, we cannot ignore the contrast between what the equity market is yearning for (rate cuts) and what the Federal Reserve is doing (reducing their balance sheet by up to $95B per month). In reducing its balance sheet, the Fed can either allow securities to mature or in some instances sell securities back into the market. Neither situation is conducive to moving toward a lower interest rate environment relative to when the Fed was actively purchasing these securities, artificially driving yields lower. While the Fed has publicly signaled that they may be done shrinking their balance sheet soon, and they don’t expect a return to a sub-$4 trillion balance sheet, it is unrealistic to expect them to become an active purchaser once again in the near-term given the inflation backdrop. This is an area the market does not seem to be focused on as it searches for clues concerning the timing of when the Fed will begin to cut interest rates.
Despite certain positive signs such as strong reported jobs figures and a low unemployment rate, concerns linger, and cracks are showing amidst an otherwise optimistic 2024 economic outlook. Consumer behavior remains a critical economic driver, with broad wage gains supporting spending despite increasing inflation pressures. Notably, there’s a growing reliance on credit, particularly among lower-income households, with credit card debt reaching greater than $1.1 trillion, an all-time-high. Spending patterns are changing with younger demographics choosing to spend more freely on discretionary items as they view the concept of home ownership unrealistic for them in the near future. The rising delinquency rates in various debt types, excluding student loans, underscore emerging financial stresses as non-mortgage debt interest payments now parallel mortgage interest burdens.
We are also watching corporate debt levels closely, as more highly levered companies who had access to cheap debt are now finding themselves having to roll that debt at much higher (and costly) rates. Rate cuts don’t bail out companies in this situation either, given we are not returning to near 0% rates of the 2010s. We also question the impact of higher rates on exploding federal deficits. With an annual deficit of more than $2T, as a percentage of GDP (about 8%) the deficit is larger than any fiscal year in history where the country did not face a war, recession or other major emergency. The path to fiscal deficit reduction looks arduous given congressional polarization. Simultaneously, interest payments on the fiscal debt was up nearly 40% in 2023 to about $660B and will only continue to rapidly accumulate. How these deficits will reverberate through the general economy remains to be seen.
U.S. equities experienced a robust Q1 2024, with the S&P 500 achieving a 10.2% gain and surpassing the 5,200 mark for the first time. This performance builds on the momentum from 2023, with back-to-back quarterly gains yielding a cumulative increase of 22.5%. The quarter’s strong equity performance was underpinned by resilient job creation, solid wage growth, and consumer spending, alongside better-than-expected corporate earnings.
S&P 500 companies surpassed earnings expectations by 4% for Q4 2023, with projections indicating a 12% earnings growth in 2024. Historical data suggests a favorable outlook when equities exhibit such growth patterns, although we question if investors will continue to be willing to pay a historically high 20x earnings for the narrow breadth of the S&P 500 where the “Magnificent 7” constitute 28% of the index.
Sector-wise, Communication Services, Energy, and Information Technology led the market, with Financials and Industrials also outperforming the broader index. Over 80% of S&P 500 constituents were above their 200-day moving average by the end of Q1, signaling broad market strength. Small-caps, although trailing behind large-caps, are poised for potential growth, especially with the Russell 2000 expected to see larger earnings growth rebound compared to the S&P 500.
Performance Highlights
The Small Cap Value Strategy had strong positive performance of 11.02% in the first quarter of 2024, significantly outperforming its Russell 2000 Value Index of 2.90%. The portfolio’s success was predominantly driven by stock selection, which significantly contributed to its overall outperformance, while the allocation effect played a minor role.
On a sector level, Information Technology and Consumer Discretionary sectors were standout performers, contributing positively to the portfolio’s excess return over the benchmark. Financials also added value despite a negative benchmark return in this sector. However, Health Care and Industrials detracted from performance, with Health Care showing a notable negative selection effect. The allocation to cash limited the upside potential given the overall positive benchmark return.
Source: SEI Global Services as March 31, 2024
Performance shown is the Easterly Investment Partners LLC (“the Firm”) Snow Small Cap Value composite in USD. Past performance is not indicative of future results. Gross performance results do not include advisory fees and other expenses an investor may incur, which when deducted will reduce returns. Changes in exchange rates may have adverse effects. Net performance results reflect the application of a model investment management fee which is higher than the actual average weighted management fee charged to accounts in the composite applied to gross performance results. Actual fees may vary depending on, among other things, the applicable fee schedule and portfolio size. The Firm claims compliance with the GIPS® standards; this information is supplemental to the GIPS® report included in this material. Returns greater than one year are annualized.
Portfolio Attribution
Top 5 Performance Contributors
| Stock | Avg Weight % | Contribution % |
|---|---|---|
| SUPER MICRO COMPUTER INC | 1.76 | 2.74 |
| JACKSON FINANCIAL INC-A | 4.04 | 1.19 |
| PILGRIM'S PRIDE CORP | 4.20 | 0.98 |
| SILICON MOTION TECHNOL- ADR | 3.92 | 0.97 |
| DELEK US HOLDINGS INC | 3.75 | 0.75 |
Super Micro Computer (SMCI)
Super Micro Computer Inc. (SMCI) showed remarkable performance in the first quarter of 2024, with a stock return of 255.3%, vastly outperforming the Information Technology sector. SMCI’s explosive growth over the last year relates to the aggressive push in AI infrastructure development which the company’s products are highly efficient and quick to market. Strategic developments, such as the expansion of the Malaysia facility and a strong market response to the company’s S&P 500 inclusion, contributed to the stock’s momentum in the quarter. We continue to hold shares of SMCI as the company’s backlog growth and margin expansion opportunities remain compelling, though we have reduced our position as shares have surged.
Jackson Financial (JXN)
Jackson Financial Inc (JXN) posted impressive performance in the first quarter of 2024, with a stock return of 30.7%, significantly outperforming the Financials sector, which experienced a downturn. With a risk-based capital ratio well above the industry standard, Jackson Financial is poised for robust capital generation, expecting to return $550 to $650 million to shareholders in 2024. The company’s dividend increase to $0.70 per share reflects confidence in its financial health and future prospects.
Pilgrim’s Pride Corp (PPC)
Pilgrim’s Pride Corp (PPC) demonstrated a strong first quarter in 2024 with a stock return of 24.1%, significantly outperforming the Consumer Staples sector. Noteworthy developments included a rise in U.S. revenue by 9.5% year-over-year and improved operational margins in Europe, attributed to strategic plant network consolidation and positive pricing dynamics. PPC’s adept handling of supply chain efficiencies and favorable commodity pricing, particularly in corn and soybean stocks, bolstered its financial standing.
Top 5 Performance Detractors
| Stock | Avg Weight % | Contribution % |
|---|---|---|
| COLUMBIA BANKING SYSTEM INC | 2.91 | -1.04 |
| INTEGRA LIFESCIENCES HOLDING | 2.76 | -0.59 |
| AMN HEALTHCARE SERVICES INC | 2.05 | -0.58 |
| PHOTRONICS INC | 4.44 | -0.53 |
| FIRST COMMONWEALTH FINL CORP | 1.94 | -0.21 |
Columbia Banking System (COLB)
Columbia Banking System Inc (COLB) encountered a challenging quarter, with a significant shortfall in its financial performance, particularly in net interest margin (NIM) and net interest income (NII). The adjusted earnings per share stood at $0.44, markedly below the anticipated $0.79, primarily due to a 13 basis point sequential drop in NIM to 3.78%. This decline was unexpected, given previous guidance suggesting stability if deposit flows remained positive. However, a shift in deposit composition and an increased cost of interest-bearing deposits, which rose to 2.54% for Q4 and 2.71% for December, exerted pressure on margins. Additionally, a higher-than-expected provision for credit losses at $54.9 million underscored potential concerns in the regional economic environment where COLB operates. Given the quarter’s results and the lack of clear trajectory for margin improvement, we reduced our position.
Integra Life Sciences (IART)
Integra LifeSciences Holdings (IART) faced a notable underperformance in the quarter, with its EPS of $0.83 on total revenue of $397 million falling short of expectations. Gross Margin decreased to 64.7%, affected by supply constraints in the Skin business and the Boston manufacturing facility’s downtime. The guidance for FY 2024 indicates a cautious outlook, with projected revenue and EPS below previous expectations, largely due to ongoing challenges in product supply and the gradual reintegration of the Boston facility’s portfolio. The stock remains cheap on a P/E basis with stable, growing end markets and a path toward higher normalized EPS.
AMN Healthcare Services (AMN)
AMN Healthcare Services Inc shares underperformed this quarter, with shares falling by approximately 17%. Despite reporting better-than-expected fourth-quarter results with adjusted EPS of $1.32 and revenues of $818 million, the company’s first-quarter guidance for 2024 fell short of expectations due to a continued downturn in travel nurse assignments. Bill rates, while stable, are impacted by weaker- than-expected winter order volumes. AMN Healthcare’s recent performance reflects ongoing sector-specific challenges, particularly in its travel nurse and allied staffing segments.
AMN’s proactive strategies and recent growth of the backlog indicate potential for recovery in the latter half of 2024. AMN’s recent track record of lowering guidance has negatively impacted sentiment, though we believe the strong cash flow generation and balance sheet, support shares during near-term uncertainty.
Source: SEI Global Services.
Securities shown represent the largest contributors and detractors to the portfolio’s performance for the period and do not represent all holdings within the portfolio. There is no guarantee that such holdings are currently or will remain in the portfolio. For a complete list of holdings and an explanation of the methodology employed to determine this information, please contact Easterly. This information is not to be construed as an offer to buy or sell any financial instrument nor does it constitute an offer or invitation to invest in any fund managed by Easterly and has not been prepared in connection with any such offer.
Trailing Performance
as of March 31, 2024
| QTD | YTD | 1 Yr | 3 Yr | 5 Yr | 7 Yr | 10 Yr | Since Inception* | |
|---|---|---|---|---|---|---|---|---|
| Composite (gross) | 11.25% | 11.25% | 35.93% | 9.64% | 15.69% | 11.98% | 8.60% | 10.06% |
| Composite (net) | 11.05% | 11.05% | 34.98% | 8.87% | 14.89% | 11.20% | 7.84% | 9.29% |
| Russell 2000 Value | 2.90% | 2.90% | 18.75% | 2.21% | 8.16% | 6.55% | 6.87% | 6.40% |
Calendar Year Performance
| 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Composite (gross) | 22.51% | -6.68% | 28.44% | 24.16% | 19.39% | -18.81% | 8.35% | 22.75% | -15.99% | 4.92% |
| Composite (net) | 21.66% | -7.33% | 27.56% | 23.31% | 18.57% | -19.39% | 7.60% | 21.91% | -16.59% | 4.19% |
| Russell 2000 Value | 14.65% | -14.48% | 28.27% | 4.63% | 22.39% | -12.86% | 7.84% | 31.74% | -7.47% | 4.22% |
Source: SEI Global Services
*Inception: 10/31/06
Performance shown is the Easterly Investment Partners LLC (“the Firm”) Snow Small Cap Value composite in USD. Past performance is not indicative of future results. Gross performance results do not include advisory fees and other expenses an investor may incur, which when deducted will reduce returns. Changes in exchange rates may have adverse effects. Net performance results reflect the application of a model investment management fee which is higher than the actual average weighted management fee charged to accounts in the composite applied to gross performance results. Actual fees may vary depending on, among other things, the applicable fee schedule and portfolio size. The Firm claims compliance with the GIPS® standards; this information is supplemental to the GIPS® report included in this material. Returns greater than one year are annualized.
Top 10 Holdings
| JACKSON FINANCIAL INC-A | 4.54% |
| SILICON MOTION TECHNOL-ADR | 4.09% |
| DELEK US HOLDINGS INC | 4.09% |
| LINCOLN NATIONAL CORP | 4.06% |
| PILGRIM'S PRIDE CORP | 3.97% |
| BRINKER INTERNATIONAL INC | 3.95% |
| PHOTRONICS INC | 3.82% |
| BLOOMIN' BRANDS INC | 3.81% |
| CNO FINANCIAL GROUP INC | 3.59% |
| COMMERCIAL METALS CO | 3.33% |
| Total | 39.25% |
|---|
References to securities, transactions or holdings should not be considered a recommendation to purchase or sell a particular security and there is no assurance that, as of the date of publication, the securities remain in the portfolio. Additionally, it is noted that the securities or transactions referenced do not represent all of the securities purchased, sold or recommended during the period referenced and there is no guarantee as to the future profitability of the securities identified and discussed herein. Top ten holdings information shown combines share listings from the same issuer, and related depositary receipts, into a singular holding to accurately present aggregate economic interest in the referenced company.
Attribution vs Russell 2000 Value
Source: Bloomberg
Holdings, sector weightings, market capitalization and portfolio characteristics are subject to change at any time and are based on a representative portfolio, and may differ, sometimes significantly, from individual client portfolios.
Outlook
Looking ahead for the rest of 2024, the Easterly Snow Small Cap Value Strategy remains strategically positioned to navigate the complexities of the economic landscape. While we expect volatility in 2024 given monetary policy uncertainty, a full U.S. election cycle, and ongoing geopolitical instability as just a few of the potential overhangs, as active managers we look forward to opportunities to find and populate our portfolio with stocks where the share price is trading at levels disconnected from underlying fundamentals. The emphasis on small-cap value stocks offers a robust value proposition, especially if the Federal Reserve’s actions deviate from the anticipated rate cuts, which could adversely affect high-valuation mega-cap stocks where a higher-for-longer discount rate is applied to their future cash flows.
The strategy’s approach, grounded in fundamental analysis and active management, is designed to deliver consistent performance, balancing the pursuit of alpha with robust risk mitigation strategies. The strategy continues to seek out companies with idiosyncratic, stock-specific catalysts that drive excess returns over full market cycles. Our investment team are no strangers to successfully navigating volatility over full market cycles as our core philosophy and process has been in place for over 30 years with no style drift. The Small Cap Value strategy is now in its 18th year of audited returns. The strategy has returned 8.89% net annualized returns since inception, compared to the Russell 2000 Value index of 5.97% over this same period. As of 4/30/2024, YTD net performance is 861 basis points ahead of the benchmark. The strategy is in the top 5% of the eVestment peer group on a YTD and 1 year basis with 3-year and 5-year peer performance in the top quartile and top decile, respectively.* We expect volatility for the balance of 2024, but we remain strategically positioned to navigate the complexities of the economic landscape. In closing, we remain dedicated to delivering strong long-term performance and transparent communications to our investors. Thank you for your confidence and commitment in Easterly Investment Partners. As always, we welcome your comments and questions.
*Source: eVestment, as of 3/31/2024. Peer groups represent percentile rankings which are based on monthly gross of fee returns and reflect where the Easterly Snow Small Cap Value composite returns fall within the indicated eVestment Alliance, LLC (“eVestment”) universe. The universe is the eVestment US Small Cap Value Equity and number of constituents is 1yr: 222, 3yr: 220, 5yr: 215, 10yr:188. Performance figures are provided to eVestment by individual investment management firms for informational purposes only. Past performance is not indicative of future performance.
Easterly Investment Partners LLC Snow Snow Small Cap Value Composite GIPS® Report
Composite Inception Date: October 31, 2006
| Year End | Composite Performance | Annualized 3-Year Standard Deviation | Total Assets (millions) | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross | Net | Russell 2000 Value | Composite | Russell 2000 Value | Composite Dispersion | Total Firm Assets | Firm (AUM) | Firm (AUA)* | Composite | Number of Accounts | |
| 2023 | 22.51% | 21.66% | 14.65% | 24.00% | 22.06% | N/A | 1,730 | 1,090 | 640 | 64 | Five or fewer |
| 2022 | -6.68% | -7.33% | -14.48% | 33.38% | 27.66% | N/A | 1,834 | 1,341 | 493 | 55 | Five or fewer |
| 2021 | 28.44% | 27.56% | 28.27% | 32.10% | 25.35% | N/A | 2718 | 1540 | 1178 | 77 | Five or fewer |
| 2020 | 24.16% | 23.31% | 4.63% | 32.68% | 26.12% | 0.10% | - | - | 78 | Five or fewer | |
| 2019 | 19.39% | 18.57% | 22.39% | 20.50% | 15.70% | 0.20% | - | - | 82 | Five or fewer | |
| 2018 | -18.81% | -19.39% | -12.86% | 20.10% | 15.80% | N/A | - | - | 103 | Five or fewer | |
| 2017 | 8.35% | 7.60% | 7.84% | 18.20% | 14.00% | N/A | - | - | 421 | 6 | |
| 2016 | 22.75% | 21.91% | 31.74% | 18.40% | 15.50% | 0.60% | - | - | 627 | 10 | |
| 2015 | -15.99% | -16.59% | -7.47% | 15.00% | 13.50% | 0.50% | - | - | 643 | 12 | |
| 2014 | 4.92% | 4.19% | 4.22% | 15.20% | 12.80% | N/A | - | - | 557 | 9 | |
*Firm-wide advisory- only assets. Assets under Advisement (AUA) includes the assets where Easterly Investment Partners (“Easterly”) provides its advisory services in similar strategies and does not have discretionary trading authority.
Firm Definition
For purposes of complying with the GIPS® standards, the firm is defined as Easterly Investment Partners LLC (“EIP”) which is an SEC registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended, effective January 2019. The firm was redefined on 1/1/2023 to reflect that EIP is comprised of two distinct firms: the institutional asset management operations, investment strategies, performance track records, certain employees and client accounts of Levin Capital Strategies, which were acquired by EIP in March 2019, and Snow Capital Management LLC’s (“SCM”) asset management business, investment strategies, performance track records, client accounts, and certain employees, acquired by EIP in July 2021.
Firm Verification Statement
Easterly claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Easterly has been independently verified for the period April 1, 2019 through December 31, 2023. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis.
Composite Verification Statement
The Small Cap Value Composite has had a performance examination from composite inception date through December 31, 2023. The verification and performance examination reports are available upon request.
Composite Description
The Small Cap composite provides exposure to long-only US publicly-listed securities and ADRs, and may occasionally invest in convertible and corporate bonds, taking into account various factors. The strategy is biased toward Small capitalization value stocks, and position sizes range between 0.5% to 5%, with liquidity as a consideration.
Benchmark Description
The Russell 2000 Value Index measures the performance of small-cap value segment of the U.S. equity universe. It includes those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. Indexes are unmanaged. It is not possible to invest directly in an index.
Performance Calculation
All returns are calculated and presented in US dollars based on fully discretionary AUM, including those investors no longer with the firm. All gross composite returns are net of transaction costs and gross of foreign withholding taxes, if any, and reflect the reinvestment of interest income and other earnings. Net performance results reflect the application of a model investment management fee which is higher than the actual average weighted management fee charged to accounts in the composite applied to gross performance results. Actual fees may vary depending on, among other things, the applicable fee schedule and portfolio size. Actual investment advisory fees incurred by clients will vary. Policies for valuing investments, calculating performance, and preparing GIPS reports are available upon request. A list of composite descriptions is available upon request. Past performance is not indicative of future performance. Results may be higher or lower based on IPO eligibility, and actual investor’s returns may differ, depending upon date(s) of investment(s). Additional information is available upon request.
Investment Management Fee Schedule
The current standard management fee schedule for a segregated account managed to the composite strategy is as follows: 0.70% on the first $25 million; 0.55% on the next $75 million; 0.50% on the next $100 million; 0.45% on the next $100 million; 0.35% on the balance.
Composite Dispersion
The annual composite dispersion, if shown, is an asset-weighted standard deviation calculated using gross returns for the accounts in the composite the entire year. The internal dispersion measure is not applicable if there are five or fewer portfolios in the composite for the entire year if that is the reason this is N/A.
Standard Deviation
The annualized 3-year standard deviation represents the annualized standard deviation of actual gross composite and benchmark returns, using the rolling 36 months ended each year end. Standard deviation is a measurement of historical volatility of investment returns.
Trademark
GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
Important Disclosures
© 2024. Easterly Asset Management. All rights reserved.
Easterly Asset Management’s advisory affiliates (collectively, “EAM” or “the Firm”), including Easterly Investment Partners LLC, Easterly Funds LLC, and Easterly EAB Risk Solutions LLC (“Easterly EAB”) are registered with the SEC as investment advisers under the Investment Advisers Act of 1940, as amended. Registration does not imply a certain level of skill or training. More information about the firm, including its investment strategies and objectives, can be found in each affiliate’s Form ADV Part 2 which is available on the www.sec.gov website. This information has been prepared solely for the use of the intended recipients; it may not be reproduced or disseminated, in whole or in part, without the prior written consent of EAM.
No funds or investment services described herein are offered or will be sold in any jurisdiction in which such an offer or sale would be unlawful under the laws of such jurisdiction. No such fund or service is offered or will be sold in any jurisdiction in which registration, licensing, qualification, filing or notification would be required unless such registration, license, qualification, filing, or notification has been affected.
The material contains information regarding the investment approach described herein and is not a complete description of the investment objectives, risks, policies, guidelines or portfolio management and research that supports this investment approach. Any decision to engage the Firm should be based upon a review of the terms of the prospectus, offering documents or investment management agreement, as applicable, and the specific investment objectives, policies and guidelines that apply under the terms of such agreement. There is no guarantee investment objectives will be met. The investment process may change over time. The characteristics set forth are intended as a general illustration of some of the criteria the strategy team considers in selecting securities for client portfolios. Client portfolios are managed according to mutually agreed upon investment guidelines. No investment strategy or risk management techniques can guarantee returns or eliminate risk in any market environment. All information in this communication has been obtained from sources believed to be reliable but cannot be guaranteed. Investment products are not FDIC insured and may lose value.
Investments are subject to market risk, including the loss of principal. Nothing in this material constitutes investment, legal, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate. The information contained herein does not consider any investor’s investment objectives, particular needs, or financial situation and the investment strategies described may not be suitable for all investors. Individual investment decisions should be discussed with a personal financial advisor.
Any opinions, projections and estimates constitute the judgment of the portfolio managers as of the date of this material, may not align with the Firm’s opinion or trading strategies, and may differ from other research analysts’ opinions and investment outlook. The information herein is subject to change without notice and may be superseded by subsequent market events or for other reasons. EAM assumes no obligation to update the information herein.
References to securities, transactions or holdings should not be considered a recommendation to purchase or sell a particular security and there is no assurance that, as of the date of publication, the securities remain in the portfolio. Additionally, it is noted that the securities or transactions referenced do not represent all of the securities purchased, sold or recommended during the period referenced and there is no guarantee as to the future profitability of the securities identified and discussed herein. As a reminder, investment return and principal value will fluctuate.
The indices cited are, generally, widely accepted benchmarks for investment performance within their relevant regions, sectors or asset classes, and represent non managed investment portfolio. It is not possible to invest directly in an index.
This communication may contain forward-looking statements, which reflect the views of EAM and/or its affiliates. These forward-looking statements can be identified by reference to words such as “believe”, “expect”, “potential”, “continue”, “may”, “will”, “should”, “seek”, “approximately”, “predict”, “intend”, “plan”, “estimate”, “anticipate” or other comparable words. These forward-looking statements or other predications or assumptions are subject to various risks, uncertainties, and assumptions. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Should any assumptions underlying the forward-looking statements contained herein prove to be incorrect, the actual outcome or results may differ materially from outcomes or results projected in these statements. EAM does not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by applicable law or regulation.
Past performance is no guarantee of future results.
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