In April, the Size & Style Responsive (SSR) Tax-Aware portfolio returned 11.0%, beating the S&P 1500's return of 10.4%.
Stock selection and the interaction between stock selection and size and style helped the strategy outperform the benchmark, though size and style were a drag on performance. Below is a breakdown of the performance attribution:
Our portfolio continues to follow the size and style allocation guidance implemented in mid-2025, which reflects our systematic factor signals and long-term diversification objectives.
The table below shows the portfolio allocation by size and style.
Size and Style Allocation Guidance
This framework defines:
These targets evolve as factor signals change, but remain anchored to maintaining diversified exposure across market regimes.
The size signal had a brief uptick in April but declined towards the end of the month. Smaller companies continue to underperform larger companies on a relative basis. Throughout most of 2025, the Mag 7 drove market returns. This trend began to reverse at the beginning of 2026, but showed signs of reversing yet again in April. The S&P 500 (large-cap) and the S&P 600 (small-cap) both saw strong performance. However, the S&P 400 (mid cap) lagged a bit and yielded a lower return than its peers. AI concerns caused many investors to flock to mid-cap from large-cap, but the rotation back towards AI-related stocks has reversed that trend.
As you can see from the plot below, the S&P 500, when measured on a market-cap-weighted basis (SPY), has rebounded significantly since March. The equal-weighted S&P 500 (RSP) has mostly maintained positive cumulative returns, except for a brief blip in March. This highlights the very large and rapid rebound of the markets in April, after a -5.1% decline in March. SPY has rebounded thanks to improved performance among large caps.
Within large cap, growth rebounded after showing signs of a potential return to value. The blue line, which shows the ratio between value and growth was buoyed by strong performance among large-cap growth stocks.
Within non-large stocks:
Stock selection helped the strategy outperform the benchmark. Our signal was generally effective on both the buy and sell sides. Technology, Communication Services, Consumer Cyclical, Financial Services, and Healthcare drove the gains. Market-wide, most sectors performed strongly, except Energy. The portfolio performed well. For example, Arista Networks, a large-cap stock that the portfolio holds a larger share of than the benchmark, returned over 40%.
In April, the strategy outperformed its benchmark. In addition, on a year-to-date basis, the strategy is outperforming the benchmark and its long-run performance remains competitive.
Compliance Disclosure:
The Size and Style Responsive (SSR) Tax Aware strategy includes all institutional and retail portfolios that invest in a portfolio of stocks in large-, mid-, and small-cap companies. The strategy seeks to manage after-tax returns by incorporating tax considerations into trade decisions. For example, when possible, the strategy may defer realizing short-term gains to achieve a more favorable long-term tax treatment, subject to client-specific constraints and objectives. Tax impact is a factor in implementation, but it does not override the strategy’s investment objectives.
Burney Advisor Services affirms compliance with the Global Investment Performance Standards (GIPS®) and has prepared this chart in accordance with these standards. As of February 2, 2026, the benchmark for the SSR Tax Aware shifted from the Russell 3000 Index to the S&P 1500 Index, and this change applies to all reporting periods. The characteristics of the equity holdings in the S&P 1500 Index better match those of the SSR Tax Aware than those of the Russell 3000. The S&P Composite 1500 Index combines stocks in the S&P 500, the S&P MidCap 400, and the S&P SmallCap 600. The inception date of the strategy is March 1, 2018.
Past performance, whether actual or hypothetical, does not guarantee future performance. Investment results and principal value will fluctuate, and clients' investments, when redeemed, may be worth more or less than their original cost. This communication is exclusively for investment advisors and financial professionals and is not intended for clients or the investing public.