Investment managers report mixed first‑quarter returns; small‑cap strategy lags benchmark

Multiple investment managers presented first‑quarter and multi‑year performance updates to the Erie County Employees' Retirement Board on May 20.

Steve Sanders of Stoneridge Investments said the small‑cap growth sleeve underperformed its Russell 2000 Growth benchmark by 349 basis points in Q1, returning -6.30% versus the benchmark's -2.81%. "The one‑year return was 28.89% with the return since inception being 9.56%," Sanders said. John Ognar of Allspring reported the Allspring strategy was down 0.08% for the quarter, up 4.18% over the trailing 12 months, with three‑ and five‑year returns of 6.92% and 3.81% respectively and a since‑inception return of 8.95%.

Frank Dawson of Boyd Watterson summarized fixed‑income and real‑estate performance, saying fixed income underperformed its index by about 10 basis points in the quarter; the one‑year gross return was 4.99% and the three‑year return 4.28%. For real estate, Dawson reported a 1.35% net income return for the quarter and a 5.49% trailing 12‑month return, with three‑year and since‑inception returns of 5.93% and 6.23%.

The managers' updates provided context for the board's decision to rebalance allocations later in the meeting. Board members asked managers about performance drivers and trade execution; managers noted market conditions and sector exposures as contributing factors.