The impact of the recent midsized bank failures appears to be contained for now, though the episode highlights the vulnerabilities inherent in today’s financial system.

Portfolios managed by the Global Value team had no direct exposure to Silicon Valley Bank or Signature Bank. Within the broader financial sector, our exposure includes large money center and super-regional banks and financial services companies alongside niche insurers, insurance brokers, payments networks, and clearing and custody platforms.

Given our focus on trying to avoid the permanent impairment of capital, the Global Value team has long sought to build resilience in our portfolios through rigorous security selection and thoughtful diversification.