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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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1290 Avantis U.S. Large Cap Growth Fund 2025 Q1 Investor Letter | Buyside Digest

Back to Fund Profile (1290 Avantis U.S. Large Cap Growth Fund)

Primary Source Intelligence • Q1 2025 Letter Analysis

1290 Avantis U.S. Large Cap Growth Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, 1290 Avantis U.S. Large Cap Growth Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD-9.04%

YTD-9.04%

Annualized+8.82%

Positioning StanceCONSTRUCTIVE

Market CapLarge Cap

GeographyUS

Digest Analysis

Quick Take

"The fund outperformed in Q1 by systematically underweighting low-quality growth stocks with poor book-to-market and profitability metrics. Tesla's underperformance was the largest contributor given the fund's underweight position."

Executive Summary

The 1290 Avantis U.S. Large Cap Growth Fund outperformed its benchmark in the first quarter despite broad U.S. stock declines. The fund's systematic approach of favoring companies with higher book-to-market ratios and profitability characteristics proved beneficial as value stocks outperformed growth across all market capitalizations. Key performance drivers included underweighting companies with the lowest combined book-to-market and profitability metrics, which meaningfully underperformed during the period. Tesla, held as an underweight position due to poor fundamental characteristics, was the largest single contributor to outperformance as it declined significantly. The fund also benefited from underweighting mega-cap stocks in favor of large-cap names within the growth universe. However, an overweight to the highest quality companies created a modest drag as these stocks underperformed, and the exclusion of REITs detracted slightly as that sector outperformed. The strategy demonstrates the value of systematic factor-based investing focused on fundamental quality metrics.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

75%

CautiousHigh

High Conviction (75%)

The fund demonstrates high conviction in its systematic factor-based approach, maintaining clear tilts toward book-to-market and profitability characteristics. The consistent application of the strategy despite market volatility and the detailed explanation of how these factors drove performance indicates strong conviction in the methodology.

Growth Outlook

38%

BearishBullish

Neutral (38%)

The commentary notes broad U.S. stock declines and steep losses in March, indicating a challenging market environment. However, the tone is factual rather than deeply pessimistic, focusing on performance attribution rather than expressing strong negative views about future market conditions.

Risk Appetite

10%

DefensiveAggressive

Defensive (10%)

The fund maintains its systematic approach with clear factor tilts toward quality metrics. The positioning reflects a disciplined, risk-aware strategy that favors fundamental characteristics over momentum, suggesting a measured risk appetite rather than aggressive or defensive positioning.

Capital Deployment

0%

De-riskingDeploying

De-risking (0%)

No information is provided about changes in cash levels, position sizing, or capital deployment activities. The commentary focuses solely on performance attribution without discussing any changes to the fund's investment approach or capital allocation.

Forward Guidance

0%

CautiousExpansionary

Cautious (0%)

The commentary provides no explicit forward guidance or statements about future positioning changes. The focus is entirely on performance attribution for the completed quarter with no directional bias expressed for future periods.

Language Signal

5%

BearishBullish

Bearish (5%)

Language is predominantly neutral and analytical, focusing on performance attribution. Slight positive bias comes from highlighting outperformance and the effectiveness of the systematic approach, but overall tone remains factual and measured without strong directional language.

Perceived Risk

30%

Low RiskElevated

Low Risk (30%)

The commentary acknowledges market volatility and underperformance in certain areas but does not express heightened concern about systemic risks. The focus on factor-based performance attribution suggests awareness of market dynamics without indicating elevated risk perception.

Opportunity Density

50%

ScarceAbundant

Selective (50%)

No explicit discussion of opportunity set or investment prospects is provided. The commentary focuses on performance attribution rather than discussing the availability or scarcity of attractive investment opportunities in the large-cap growth universe.

Time Horizon

70%

Short-TermLong-Term

Decade+ (70%)

The systematic factor-based approach implies a longer-term investment philosophy focused on fundamental characteristics rather than short-term momentum. The consistent application of book-to-market and profitability screens suggests patience in allowing these factors to generate returns over time.