In the first quarter of 2026, US equity markets broadened as investors shifted attention from mega-cap technology stocks to a wider array of companies. However, this trend faced an unexpected interruption in March due to escalating conflict in Iran, resulting in a 4.3% decline for the S&P 500, its worst quarterly return since 2022. The so-called 'Magnificent 7' tech stocks suffered an average decline of 11%, prompting a rotation into sectors linked to commodities and speculative investments. Despite this, the S&P 500 Equal Weight index outperformed the market-cap weighted S&P 500 by 5%, indicating a broader market recovery. The Large Cap and Income Equity strategies excelled during this period, producing positive returns, while smaller cap strategies struggled due to their structural underweight to Energy. Historical patterns suggest that geopolitical events, while impactful in the short term, typically do not alter the long-term fundamentals of resilient businesses. The firm remains committed to focusing on companies with durable competitive advantages and believes the current market broadening is merely on pause, not at an end.