The Thrivent Small Cap Stock Fund experienced an underperformance relative to the Russell 2000\u00ae Index during the latest quarter and the preceding year. This deviation was predominantly driven by specific security selections, with healthcare stocks being the primary detractor in the recent quarter and industrial stocks weighing down annual returns.
In response to market dynamics, the Fund strategically initiated new positions across diverse sectors, leveraging periods of stock price volatility. This proactive approach underscores a commitment to identifying and investing in promising opportunities. Despite the recent challenges, the Fund remains steadfast in its investment philosophy: seeking out fundamentally sound companies that are attractively valued and possess long-term growth prospects in sales, earnings, and free cash flow.
The Fund's disciplined investment process, focused on identifying undervalued growth opportunities, positions it to navigate market fluctuations and capitalize on future market upswings. By adhering to its core strategy of rigorous fundamental analysis and selective stock picking, the Fund aims to deliver long-term value to its investors, fostering a resilient portfolio in an ever-evolving market landscape.