FGCU Eagle Fund Performance Attribution year to date 2025 thru 1/31/25

What is?attribution?? ?Attribution?breaks down portfolio investment performance into various components (or 'drivers').

In its most straightforward application, attribution breaks down portfolio investment performance into?two components: Sector Weighting and Stock Selection impact.?

For example,? Year to Date 2025 (thru Jan 31st),? FGCU's Large Cap Eagle Fund portfolio returned 4.56% versus the Bloomberg 500 (B500) return of 3.03%,? representing outperformance of 1.52% (or 152 basis points or bps).?

Sector Weightings contributed 54bps to outperformance, while stock selection accounted for the remaining 99bps.?

Our favorable Sector Weighting impact was largely driven by our 8.66% underweight to the Technology Sector, which was?down 2.41% and?significantly underperformed the overall market (up 3.03%). Sector weighting decisions were favorable in eight?out of 11 sectors. The only material negative sector call was Communication Services (up 9.3%), where?our 3.2% underweight cost us 20bps of performance.

Stock Selection was overall favorable (+99bps) but positive?in just half the sectors. Selection was most positive in Industrials (+43bps), Technology (+37bps), and Consumer Discretionary (+29bps). Poor stock selection in Energy (-17bps) was the only area of meaningful underperformance.?

Drilling down further... into individual stocks, our best stocks included Oshkosh +22 % /+78bps,? IBM +16 % /+67bps and Citigroup +16 % /+25bps. It's no surprise that our best stocks had great earnings reports. The worst stocks included Everest Group (-4%, -35bps), NVDA (-10%, -15bps), and FedEx (-5%, -29bps).? ?Everest was down on bad earnings,? ?FedEx down on competitor UPS results, and NVDA down on Deep Seek news.

In addition to weighting / selection-based?attribution, you can run?attributions on a myriad of factors, such as Market Cap structure, Value or Growth Style factors, exposure to risks?like beta or volatility, and an infinite number of others.

Attribution can also provide hints as to whether your performance was skill or luck.? For instance, If attribution shows your good performance was due to one sector call or just a couple of stocks... Luck may be involved.? However, if there are multiple sources of outperformance... It may imply more skillful stock analysis and portfolio management.?

From a Factor perspective,?our overweight to Low Valuation (especially Low PE) helped the most— while our underweight to High Growth and underweight to Smaller Size hurt performance. Overall, Factor exposure was neutral, meaning our outperformance likely came from Fundamental (non-quantifiable) factors.

Understanding and interpreting ATTRIBUTION ANALYSIS is one of the expected learning outcomes for FGCU's Eagle Fund students.