The International Growth Fund was up +2.2% in December, compared with our global benchmark which was up +1.0%.

Alphabet (+12%) had a volatile year due to competitive and regulatory pressures but ended up as one of the top performers for both the month, and the year. Initially seen as an "AI laggard" with underwhelming AI product launches, concerns arose about Generative AI search competition (e.g. ChatGPT) impacting its core model. However, Google Search growth reaccelerated throughout 2024, and Alphabet's scale and data access keep it well-positioned in AI. The US Department of Justice released proposed solutions for the anti-trust case against Alphabet, with final decisions expected in August 2025. Alphabet is appealing the initial judgment and will likely appeal the remedies as well. Despite being viewed primarily as a search business, Alphabet's YouTube, Cloud, and "other bets" like Waymo and Quantum Computing are all firing.

Floor & Decor (-11%) had a weak month, capping off a volatile year. Existing home sales, the primary driver of flooring demand, remain near multi-decade lows, and mortgage rates rose sharply again this quarter, further dampening demand. Despite these challenges, Floor & Decor continues to gain market share from competitors and open new stores. We have continued to add to our position during periods of significant stock price weakness.