As evidenced by the postelection rally in the fourth quarter, markets today tend to react much faster than ever before. And while our outlook for the market remains cautiously optimistic, we also acknowledge that many of the positives have been priced in at this point. Regardless of the speculation that has driven much of the stock market's performance into year-end, we remain steadfast in our approach and will not chase performance or attempt to predict investor sentiment.

We continue to favor companies that have control over their destiny. That is, "self-help" companies that are uniquely positioned to benefit from powerful secular trends and that are innovatively disrupting less efficient business models. We will continue to be selective and opportunistic in our long-term approach, while keeping a close eye on valuations. Through maintaining discipline and adhering to our rigorous process, rooted in bottom-up fundamental research, we are confident that our strategy can continue generating attractive risk-adjusted returns for our investors.

Given the high degree of uncertainty in today's market, there is a tendency for stocks to overshoot on both the downside and the upside. That being the case, we are prepared to take advantage of the potential volatility by trimming positions on strength and potentially adding to our highest-conviction ideas on weakness.