The first quarter of 2023 proved to be another volatile one for U.S. stocks as market sentiment shifted daily between pricing in a hard, soft, or emergency landing for the economy. While turbulence surrounding bank failures and systemic risk to financial markets is unsettling, we are pleased to report that three Hodges Mutual Funds generated positive first quarter 2023 returns relative to their respective benchmarks. Positive relative performance in several of our fund strategies was attributed to our steadfast focus on companies with sound business fundamentals and reasonable valuations. 

While the recent turbulence in financial markets has been unsettling, three of the four Hodges Mutual Funds generated positive 2022 returns relative to their respective benchmarks. Although broad repricing of most risk assets resulted in few places to hide in 2022, our focus on companies with sound business fundamentals and reasonable valuations contributed to positive relative performance in several fund strategies.

Estimated capital gains for Hodges Fund, Hodges Small Cap Fund, Hodges Blue Chip Equity Income Fund, and Hodges Small Intrinsic Fund.