Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 12.4% | -5.4% | 15.5% |
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 15.5% | 24.3% | 52.0% | -49.1% | 4.9% | 71.4% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 12.4% | -5.4% | 15.5% |
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 15.5% | 24.3% | 52.0% | -49.1% | 4.9% | 71.4% |
Sands Capital Select Growth delivered -5.4% in Q4 2025 and +15.5% for the full year, underperforming benchmarks due to multiple compression despite strong earnings growth. The firm maintained meaningful AI exposure while navigating market volatility driven by infrastructure spending scrutiny and Federal Reserve policy shifts. Portfolio changes increased exposure to AI semiconductors and digital advertising while reducing application software holdings. The strategy focuses on six key themes: AI infrastructure with demand extending through 2027, defense technology entering structural growth, robotics advancing through AI compute improvements, energy transition driven by data center power demands, cybersecurity becoming core infrastructure, and space commercialization scaling rapidly. Despite near-term underperformance, the firm remains confident in portfolio positioning across these transformational themes. Management emphasizes discipline over momentum, protecting balance sheet strength and earnings durability rather than chasing fragile market leadership. The portfolio trades at historically attractive relative valuations, positioning for long-term value creation as innovation adoption broadens beyond current narrow market focus.
Sands Capital maintains concentrated exposure to businesses creating the future through disruptive innovation, focusing on AI infrastructure, defense technology, robotics, energy transition, cybersecurity, and space while avoiding bubble-like excesses and maintaining valuation discipline.
The firm expects continued AI infrastructure buildout through 2027 with opportunities emerging as adoption shifts from enablers to users. Portfolio positioned to benefit from multi-year secular growth themes while maintaining discipline on business quality and valuation. Market's narrow focus on AI infrastructure may extend opportunities for long-term value creation across diversifying themes.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 22 2026 | 2025 Q4 | AMZN, APP, AVGO, CVNA, DASH, GOOGL, ICE, META, MSFT, NFLX, NU, NVDA, RARE, RBLX, SE, SHOP.TO, SPOT, SQ, TSM, V | AI, defense, energy, growth, infrastructure, Robotics, Space, technology |
GOOGL CVNA TSM AMZN AVGO RBLX SE NFLX SPOT MSFT NOW TEAM ORCL AJG VG DXCM CRS PWR |
AI continues to reshape business models and drive market leadership, with infrastructure spending extending into 2027. The firm maintains meaningful exposure to AI enablers while… |
| Oct 20 2025 | 2025 Q3 | AAP, AVGO, DXCM, GOOG, ICE, NFLX, NOW, NVDA, ORCL, RBLX, TEAM, TSM | Artificial Intelligence, Cloud infrastructure, E-Commerce, semiconductors, software | - | AI-driven capital spending and infrastructure buildouts dominated the portfolios focus, with holdings in NVIDIA, Broadcom, and Oracle leading performance. Managers increased exposure to cloud and… |
| Jul 21 2025 | 2025 Q2 | AJG, AVGO, CVNA, NFLX, NVDA, RARE, RBLX, SHOP, TEAM, UBER, V | AI, growth, innovation, Platforms | - | - |
| Mar 31 2025 | 2025 Q1 | AMZN, APP, APPL, ASML, AVGO, DDOG, ENTG, NET, NOW, NVDA, RBLX, SE, SNOW, SPOT, TSM, UBER | - | - | - |
| Dec 31 2024 | 2024 Q4 | 300750 CH, APP, AXON, DXCM, EW, FND, GRAB, LRCX, NFLX, NOW, NU, OKTA, RBLX, SSFN, YMM | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIThe extended federal government shutdown added volatility during what was otherwise a risk-on environment, with a mid-quarter shift in market behavior for AI-related equities as the exuberant narrative evolved to one more balanced in assessing the technology's enormous potential against staggering capital spending plans and high expectations. The team initiated a position in Credo Technology as a more diversified way to gain exposure to strong trends in AI-connectivity. |
Connectivity Semiconductors Infrastructure Capital Spending |
CybersecurityCybersecurity companies are using AI in core algorithms to better identify anomalies and block malicious traffic. CrowdStrike is seeing reacceleration in growth with new Falcon Flex offering, while Netskope continues gaining SASE market share with strong competitive win rates. |
Security AI Detection Enterprise Cloud Protection | |
DefenseThe team initiated a position in Curtiss-Wright, believing the company is entering a period where multiple near-term growth drivers are converging, including rising defense budgets, commercial aerospace production ramps, nuclear power plant life extensions and new builds, and submarine production. |
Defense Budgets Aerospace Nuclear Submarines | |
Energy TransitionThe portfolio maintains significant exposure to electrification themes through companies like Bloom Energy, which provides clean, reliable power solutions for AI data centers. The energy transition represents a structural opportunity as companies race to build power infrastructure to support growing electricity demands from AI workloads. |
Electrification Clean Energy Power Generation Fuel Cells Grid Infrastructure | |
RoboticsRobotics was identified as one of the manager's top five secular trends for the near-to-medium term. This represents an area of focus for finding category leaders before they become widely discovered, though specific robotics investments were not detailed in this letter. |
Automation Technology Industrial Innovation | |
SpaceSpaceX is generating significant value with rapid expansion of Starlink broadband service, deploying vast satellite constellation with substantial user growth. The company has established itself as leading launch provider with reusable technology and is making tremendous progress on Starship rocket. SpaceX represents the fund's largest position at 19.2% of net assets. |
Satellites Launch Starlink Starship Reusable | |
| 2025 Q3 |
AIThe extended federal government shutdown added volatility during what was otherwise a risk-on environment, with a mid-quarter shift in market behavior for AI-related equities as the exuberant narrative evolved to one more balanced in assessing the technology's enormous potential against staggering capital spending plans and high expectations. The team initiated a position in Credo Technology as a more diversified way to gain exposure to strong trends in AI-connectivity. |
Connectivity Semiconductors Infrastructure Capital Spending |
ConsumerThe consumer segment includes DJL Petfoods (pet food ingredients distributor) and TSDC Wholesale (food and grocery wholesale). DJL exemplifies RDCP 2.0 characteristics as an asset-light but infrastructure-critical business with long-standing customer relationships, exceptional retention rates, and exposure to growing pet ownership and premiumisation trends. These businesses benefit from structural advantages and recurring revenue streams. |
Pet Care Food Distribution Consumer Staples Wholesale Distribution | |
Technology |
||
| 2025 Q2 |
AIThe extended federal government shutdown added volatility during what was otherwise a risk-on environment, with a mid-quarter shift in market behavior for AI-related equities as the exuberant narrative evolved to one more balanced in assessing the technology's enormous potential against staggering capital spending plans and high expectations. The team initiated a position in Credo Technology as a more diversified way to gain exposure to strong trends in AI-connectivity. |
Connectivity Semiconductors Infrastructure Capital Spending |
Innovation |
||
Platforms |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 22, 2026 | Fund Letters | Frank M. Sands | MSFT | Microsoft Corp. | Information Technology | Software | Bull | NASDAQ | AI, Bottlenecks, Capacity, CapEx, cloud, enterprise, monetization | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | NOW | ServiceNow Inc. | Information Technology | Software | Bull | New York Stock Exchange | Automation, Competition, disruption, Sentiment, Software, valuation, Workflow | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | TEAM | Atlassian Corp. | Information Technology | Software | Bull | NASDAQ | Collaboration, Developers, disruption, migration, Pricing, Sentiment, Software | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | ORCL | Oracle Corp. | Information Technology | Software | Bear | New York Stock Exchange | Balance_Sheet, CapEx, cloud, Competition, growth, leverage, Partnerships | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | AJG | Arthur J. Gallagher & Co. | Financials | Insurance Brokers | Neutral | New York Stock Exchange | acquisition, Brokerage, compounding, diversification, inflation, Insurance, Pricing_Cycle | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | VG | Venture Global Inc. | Energy | LNG Infrastructure | Neutral | New York Stock Exchange | Commissioning, Execution, Exports, Governance, infrastructure, litigation, LNG | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | DXCM | DexCom Inc. | Health Care | Medical Devices | Bear | NASDAQ | Adoption, Cgm, Competition, Diabetes, Reimbursement, reliability, valuation | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | GOOGL | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | advertising, AI, cloud, inference, monetization, scale, Search | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | CRS | Carpenter Technology Corp. | Industrials | Aerospace & Defense | Bull | New York Stock Exchange | Aerospace, Alloys, Capacity, Certification, duopoly, Pricing_Power, Turbines | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | CVNA | Carvana Co. | Consumer Discretionary | Specialty Retail | Bull | New York Stock Exchange | Credit, ecommerce, Inventory, Logistics, Margins, Refinancing, scale | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | PWR | Quanta Services Inc. | Industrials | Construction & Engineering | Bull | New York Stock Exchange | backlog, Electrification, Energy_Transition, Grid, infrastructure, Labor, utilities | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | TSM | Taiwan Semiconductor Manufacturing Co. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | New York Stock Exchange | AI, Capacity, Foundry, Geopolitics, Pricing, semiconductors, Yields | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | AMZN | Amazon.com Inc. | Consumer Discretionary | Broadline Retail | Bull | NASDAQ | advertising, CapEx, cloud, efficiency, Logistics, Margins, scale | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | AVGO | Broadcom Inc. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | accelerators, AI, Cyclicality, Demand, hyperscalers, Margins, Networking | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | RBLX | Roblox Corp. | Communication Services | Entertainment | Bull | New York Stock Exchange | CapEx, Creators, Engagement, Gaming, monetization, platform, Regulation | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | SE | Sea Ltd. | Consumer Discretionary | Broadline Retail | Bull | New York Stock Exchange | Competition, ecommerce, Engagement, Fintech, Logistics, profitability, Reinvestment | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | NFLX | Netflix Inc. | Communication Services | Entertainment | Bull | NASDAQ | acquisition, antitrust, Engagement, Ip, leverage, Pricing, Streaming | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | SPOT | Spotify Technology SA | Communication Services | Entertainment | Bull | New York Stock Exchange | AI, Audio, Engagement, Margins, Pricing, royalties, Subscriptions | Login |
| TICKER | COMMENTARY |
|---|---|
| AMZN | This quarter, we took profits in our hyperscaler portfolio companies (Amazon and Google) and increased our position in NVIDIA. |
| APP | AppLovin provides tools that help mobile app developers, particularly mobile game developers, market and monetize their products. We exited AppLovin after significant price appreciation. |
| AVGO | During the quarter, we initiated a below-average weight position in leading semiconductor and infrastructure software company Broadcom. Broadcom's ongoing transformation from a provider of custom ASICs to a full rack-scale solutions vendor, including scale-up networking, marks a significant improvement in its strategic positioning compared to earlier in the year. This strategic evolution has been validated by recent product launches, such as the Scale-up Ethernet solution, and committed orders from major customers like Anthropic. |
| CVNA | Our portfolio looks very skewed to Carvana, but that is a feature of the strategy – to let winners run. We did not buy Carvana at this size; it is this size because it is up 100x from its 2022 lows. Carvana uses its technology to manage pricing, logistics, inspections, reconditioning workflow, merchandising, and more. These are all cogs in the industrial machine it has assembled to buy and sell cars to end customers. Significant proprietary technology has been developed to enable Carvana's retail and wholesale operations. Because Carvana is digitally native and has significant size and scale, it has been able to invest in significantly more technology than other auto dealers. |
| DASH | DoorDash Inc. operates a commerce platform that connects merchants, consumers, and independent contractors. reported better-than-expected quarterly results. However, management announced a significant increase in planned investments for 2026, which led to a -17% decline in its share price. |
| GOOGL | In the third quarter, Google, Kairos Power, and the Tennessee Valley Authority announced a major collaboration centered on a novel power purchase agreement. Google followed this announcement with another significant step forward. On October 27, Google and NextEra Energy announced plans to restart the Duane Arnold Energy Center. |
| ICE | Intercontinental Exchange (ICE) is a long-term holding and remains a top 10 position in the Fund. ICE's share price has been under pressure, largely due to AI-related concerns. The share price has already recovered 15% from recent lows. |
| META | On January 9, Meta Platforms unveiled a new agreement with Vistra—the largest generator of competitive electricity in the United States—as well as with TerraPower and Oklo. The announcement builds on Meta's agreement last year with Constellation Energy and positions the company to become one of the largest corporate purchasers of nuclear-generated electricity in the United States. |
| MSFT | MSFT was a detractor in 4Q25 following its fiscal first-quarter 2026 earnings report released on October 29. While results were better than expected operationally, investor reaction was driven by guidance and capital expenditure intensity rather than headline performance. Revenue grew 17% year-over-year, exceeding consensus expectations, and Azure revenue increased 39% year-over-year, also ahead of estimates. However, management guided to a sequential deceleration in Azure growth in fiscal Q2, signaling some moderation after a period of exceptional demand. |
| NFLX | NFLX was the portfolio's largest detractor in 4Q25 following investor concerns around near-term subscriber growth and rising content spending. While revenue grew approximately 10% year-over-year, management guided to slower net subscriber additions in North America and Europe after recent price increases, and margins were pressured by elevated investment in live sports and international content. |
| NU | Since our mid-year update, Nubank's shares increased 37%, bringing full-year performance to +63%. This performance has been driven primarily by fundamentals, with earnings growing approximately 42% over the same period. Brazil remains a powerful profit engine, with high customer engagement, improving risk-adjusted returns, and expanding penetration across consumer and SME banking. Mexico continues to emerge as the next major growth vector: customer penetration has reached ~14% of the population. |
| NVDA | Capital spending from Google, Microsoft, Amazon, Meta, OpenAI, and more have led to Nvidia becoming the Rrst 5 trillion market cap company. |
| RARE | two of our holdings, Ultragenyx Pharmaceutical and Agios Pharmaceuticals, were both lower on regulatory setbacks. |
| RBLX | An overweight position in Roblox Corp. (RBLX) detracted from performance. The stock declined following quarterly earnings, which signaled slower profit growth and uncertainty around future bookings. |
| SE | E-commerce Volatility: turbulence in our e-commerce portfolio companies, Sea Ltd (Southeast Asia) and MercadoLibre (Latin America), amidst aggressive price wars. |
| SHOP.TO | Non dividend paying technology names Shopify and Celestica had also meaningful contribution to the index returns for the year, detracting our relative outcome. |
| SPOT | Spotify is the world's leading audio streaming platform. Third-quarter results showed continued operating progress, with users increasing 11% to 713 million and subscribers growing 12% to 281 million. Meanwhile, operating income expanded to a mid-teens margin, alongside a record quarterly free cash flow. Despite the momentum, the shares weakened as investors reset near-term margin expectations. Spotify has been a top contributor to long-term Fund performance, and we remain confident that pricing, product innovation, advertising efficiency, and an expanding ecosystem can continue to widen margins over time, as reinforced this quarter by the launch of Spotify recommendations within ChatGPT. |
| SQ | Block operates the Square platform that facilitates merchant payments and the Cash App platform that allows individuals to send and receive money. We exited Block due to our concerns around management's execution. |
| TSM | ASML, TSMC, and Arista Networks are key players in the AI build out supply chain. |
| V | We added to our holdings in Visa Inc. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||