Liberty All-Star Equity Fund Updates and Performance Insights for December 2024

Overview of Liberty All-Star Equity Fund

The Liberty All-Star Equity Fund (NYSE: USA) provides its shareholders with monthly updates on fund performance and investment strategies. For December 2024, significant insights arise from the fund's adaptability in a dynamic market landscape.

Investment Philosophy

The fund adopts a diversified investment approach, employing both value and growth strategies. It selects investment managers that showcase a robust policy and track record of superior long-term performance, comprising three value-style and two growth-style managers. The value managers include Aristotle Capital Management, Fiduciary Management, Inc., and Pzena Investment Management, while the growth management is handled by Sustainable Growth Advisers, LP, and TCW Investment Management Company. This blend allows the fund to engage with different market conditions effectively.

Current Holdings and Performance

As of the end of December 2024, the fund has a portfolio heavily weighted in technology, financials, and healthcare sectors. Notably, the top holdings include:

- Microsoft Corp. (4.2%)
- NVIDIA Corp. (3.7%)
- Alphabet, Inc. (2.8%)
- Amazon.com, Inc. (2.8%)
- UnitedHealth Group, Inc. (2.0%)

These investments reflect a commitment to companies exhibiting significant growth potential and robust market influence, which aligns well with the fund's investment strategy.

For December, the fund reported a net asset value (NAV) of $7.34 at the beginning of the month, ultimately falling to $6.95 by month's end. This reflects a performance drop of 5.31% for the month, while year-to-date performance still shows a robust gain of 14.06% due to prior successes. The market price remained at $6.95, indicating no premium or discount compared to the NAV this month.

Sector Breakdown

Reflecting on sector contributions, the portfolio consists of:

- Information Technology: 23.7%
- Financials: 20.0%
- Health Care: 15.3%
- Consumer Discretionary: 12.6%
- Industrials: 9.1%

In total, these sectors account for substantial portions of the fund's investments, aligning with market trends indicating growth in technology and health sectors.

Adjustments and Strategy Adaptation

The fund continues to refine its portfolio. New additions include Allegion PLC, Broadcom, Inc., and Tyler Technologies, Inc., reinforcing its commitment to future growth sectors. Conversely, the fund liquidated holdings in companies such as Edison International and Goldman Sachs Group, demonstrating a proactive strategy in responding to market trends.

Conclusion and Outlook

Performance in December 2024 reflects the ongoing challenges many funds face amid fluctuating market conditions. Despite a downturn this month, the year-to-date performance underscores the viability of Liberty All-Star Equity Fund’s investment strategy. As always, the fund emphasizes a careful assessment of market conditions to navigate future investments effectively, ensuring the interests of its shareholders are prioritized. In the months ahead, stakeholders can look forward to continued updates that showcase the adaptability and strategic foresight of the fund's management.

For More Information

For additional insights into the Liberty All-Star Equity Fund and to read further updates, shareholders and potential investors can visit www.all-starfunds.com.