3Q15 Quarterly Commentary

U.S. equities posted poor returns during the quarter driven by concerns about a slowing global economy.  Domestic and emerging market credit spreads, lead by Brazil, widened sharply in the quarter.  Oil fully retraced its strong 2Q increase of $12 per barrel on news of the Iranian deal.  These three factors created a large headwind to our deep value style.  Defensive stocks lead the broader markets as is typical in these environments.  Energy was the primary reason for our underperformance in the quarter.  Certain stock selection in the Financial Services sector offset poor selection in Energy.