Company: BDJ
Filing Date: 2025-03-07
Form Type: N-CSR
Source: 0001193125-25-049575
Chunk: 35

Company: BlackRock Enhanced Equity Dividend Trust
Filing Date: 2025-03-07
Form: N-CSR
Chunk 35
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 performance? At the sector level, security selection in the semiconductors and hardware sub-sectors contributed to relative performance. At the individual holding level, an out-of-benchmark position in the semiconductor giant NVIDIA Corp., one of the top performing stocks in the global markets during 2024, was the top contributor. The shares rose due to a series of earnings beats and expectations the company will be a top beneficiary of the growth in AI. An overweight position in Astera Labs, Inc., a manufacturer of AI connectivity solutions, was also among the largest contributors. The company released several stronger-than-anticipated earnings reports following its initial public offering, boosting its shares. AI data centers require Astera Labs’ high-speed connectivity solutions and optical fiber to handle complex computations and vast amounts of data with low latency. An out-of-benchmark position in Reddit, Inc. was a further contributor. The social forum company benefited from licensing deals for its proprietary data, which is used in training AI models. At the sector level, security selection in the software and internet sub-sectors were the largest detractors from relative performance. An underweight position in AppLovin Corp. was the largest individual detractor. The gaming and advertising company exceeded earnings expectations in the second half of 2024 and issued optimistic fiscal guidance on the strength of AI advancements in ad targeting. The lack of a position in the data analytics software company Palantir Technologies, Inc. also detracted. The stock soared as strong commercial sales appeared to offset slowing demand from its government customers. Not holding a position in MicroStrategy, Inc. further detracted from relative performance. Shares of the largest corporate holder of Bitcoin rallied as the cryptocurrency soared to over $100,000 after the U.S. election on anticipated regulatory leniency by the incoming administration. The Trust used an options overlay strategy in which calls were written on a portion of the portfolio’s holdings. The Trust’s options overlay strategy detracted from relative performance. The Trust’s practice of maintaining a specified level of monthly distributions did not have a material impact on the Trust’s investment strategy. The distribution policy resulted in return of capital for the period. Refer to the financial highlights and income tax information sections in this report for further information about the distributions. Describe recent portfolio activity. The Trust added to companies that are critical in the AI supply chain, including those in the semiconductors and software sub-sectors. It trimmed positions in select internet stocks in response to slowing demand. From a geographic perspective, the Trust further reduced its allocation to Asia due