Small Cap Growth Commentary 2Q24

MARKET OVERVIEW:

The Congress Small Cap Growth Portfolio (“the Portfolio”) returned 3.3% (net of fees) vs -2.9% for the Russell 2000 Growth Index (“the Index”) in 2Q24. The Index declined amidst the hawkish repricing of interest rate cuts, as well as the underperformance of SuperMicro (SMCI), which sold off after exuberance earlier in the year.

Broad-based security selection aided Portfolio performance as three sectors contributed over 100bps to relative return. Technology was the top contributing sector, driven by holdings within the semiconductor industry as well as not owning SMCI, which does not meet our investment criteria. This was partially offset by selection in Materials.