| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 17.3% | -6.3% | 14.7% |
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 14.7% | 37.7% | 50.8% | -47.9% | 9.7% | 76.0% |
Sands Capital's Technology Innovators strategy delivered 14.7% net returns in 2025 but lagged benchmarks due to multiple compression despite strong earnings growth. The portfolio navigated significant market volatility driven by AI transformation, with narrow leadership from just 10 companies accounting for 70% of index gains. The firm maintained disciplined exposure to AI enablers while avoiding speculative excesses, focusing on businesses with clear economic models and growing earnings power. Key contributors included Taiwan Semiconductor, Carvana, and Shopify, while detractors included Roblox, Sea, and Netflix. The strategy evolved AI exposure through new positions in Alphabet, Broadcom, and Palantir, while increasing positions in internet businesses facing near-term investment cycles. Looking ahead, the firm sees five key themes shaping the future: defense technology, robotics, energy transition, cybersecurity, and space. Despite near-term volatility, the portfolio is well-positioned with historically low relative valuations and strong conviction in long-term secular growth drivers across concentrated holdings.
Technology Innovators leverages deep domain knowledge to seek leading innovative businesses globally that are key facilitators or beneficiaries of powerful secular shifts enabled by technology, maintaining concentration and conviction while navigating AI transformation and market volatility.
The firm expects 2026 to present continued volatility as markets navigate tension between AI's transformative potential and concerns about bubble-like excesses. Focus remains on identifying businesses best positioned to benefit over multi-year periods while maintaining discipline on valuation and business quality.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 22 2026 | 2025 Q4 | AMZN, APP, ASML, AVGO, AXON, CPNG, CVNA, DASH, DDOG, DUOL, GOOGL, IOT, MELI, META, MSFT, NFLX, NOW, NU, NVDA, PANW, PLTR, RBLX, SE, SHOP.TO, SPOT, SQ, TEAM, TSM, V | AI, defense, global, growth, innovation, Robotics, semiconductors, technology |
TSM CVNA KVYO SHOP NU NFLX MSFT GOOGL AVGO PLTR |
AI continues to transform industries and drive market leadership, with infrastructure buildout continuing despite concerns about bubble-like excesses. The firm maintains meaningful exposure to AI… |
| Oct 20 2025 | 2025 Q3 | APP, CRWD, DUOL, FIG, KVYO, MNDY, NFLX, NOW, NVDA, OKTA, RBLX, TEAM, TSM | Artificial Intelligence, Cloud Computing, Digital Platforms, semiconductors, software |
NVDA TSM APP RBLX DUOL MNDY NVDA TSM APP RBLX DUOL MNDY SNOW |
AI remained the dominant theme as the fund balanced infrastructure enablers like NVIDIA and TSMC with software innovators such as ServiceNow and Atlassian. Managers acknowledge… |
| Jul 21 2025 | 2025 Q2 | AAPL, GLBE, GOOG, META, MSFT, NFLX, NVDA, OKTA, PANW, SPOT, TEAM, TSM, V | AI, Cloud, innovation, semiconductors |
NVDA NFLX TEAM OKTA V PANW SPOT AAPL GLBE |
- |
| Mar 31 2025 | 2025 Q1 | APP, ASML, CVNA, DASH, IOT, KVYO, MELI, NOW, NVDA, OKTA, RBLX, SE, TSM, V | - | - | - |
| Dec 31 2024 | 2024 Q4 | 300750 CH, APP, AXON, CRWD, MNDY, NOW, NU, RBLX, SSFN, TSM | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
CybersecurityDemand for security increased following the recent NPM supply chain attack. JFrog's security add-on which secures open-source packages before organizations onboard them has seen significant pipeline growth, highlighting the critical need for software supply chain security. |
Cybersecurity Software Security Enterprise Technology | |
DefenseDefense positioning includes exposure to missiles, air defense and space through companies like Lockheed Martin, supported by large order backlogs providing strong long-term visibility amid heightened geopolitical tensions. |
Military Aerospace Geopolitical Security Infrastructure | |
Energy TransitionEnergy transition themes are reflected through infrastructure investments and companies positioned for the global push toward renewable energy, including exposure to energy services and LNG infrastructure where long-term dynamics look positive. |
Renewables Infrastructure Clean Energy Sustainability Climate | |
RoboticsAdvances in AI compute power are pushing robotics forward with near-term pull in logistics and warehouse environments. Focus on companies that make robots reliable, safe, and economically compelling rather than headline makers. |
Automation Logistics Warehouse Industrial Manufacturing | |
SemiconductorsTaiwan Semiconductor represents the dominant manufacturer for leading fabless chip designers including NVIDIA, Apple, and Broadcom. The global arms race to develop artificial general intelligence will support multiple years of robust growth for foundries with leading-edge capabilities. |
Foundries Advanced Process AI Chips Manufacturing Technology Leadership | |
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 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
SemiconductorsTaiwan Semiconductor represents the dominant manufacturer for leading fabless chip designers including NVIDIA, Apple, and Broadcom. The global arms race to develop artificial general intelligence will support multiple years of robust growth for foundries with leading-edge capabilities. |
Foundries Advanced Process AI Chips Manufacturing Technology Leadership | |
Software |
||
| 2025 Q2 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
CloudSnowflake was added as the leading player in cloud data storage, providing comprehensive data warehousing services for large businesses. The company's cloud-native platform helps companies store, analyze and share data across organizations, crucial for AI infrastructure upgrades. |
Data Storage Infrastructure Platform Enterprise | |
SemiconductorsTaiwan Semiconductor represents the dominant manufacturer for leading fabless chip designers including NVIDIA, Apple, and Broadcom. The global arms race to develop artificial general intelligence will support multiple years of robust growth for foundries with leading-edge capabilities. |
Foundries Advanced Process AI Chips Manufacturing Technology Leadership |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 20, 2025 | Fund Letters | Emerson Bluhm | DUOL | Duolingo Inc. | Information Technology | Education Technology | Bull | NASDAQ | AI, Edtech, gamification, monetization, Subscription | Login |
| Jul 21, 2025 | Fund Letters | Emerson Bluhm | AAPL | Apple Inc. | Information Technology | Technology Hardware, Storage & Peripherals | Bear | NASDAQ | AI, China, Hardware, services, Smartphones | Login |
| Oct 20, 2025 | Fund Letters | Emerson Bluhm | MNDY | monday.com Ltd. | Information Technology | Application Software | Bull | NASDAQ | AI, Margins, SaaS, User growth, Work management | Login |
| Jul 21, 2025 | Fund Letters | Emerson Bluhm | GLBE | Globale-e Online Ltd. | Information Technology | IT Services | Bear | NASDAQ | Crossborder, cybersecurity, ecommerce, Execution, tariffs | Login |
| Oct 20, 2025 | Fund Letters | Emerson Bluhm | NVDA | NVIDIA Corporation | Information Technology | Semiconductors | Bull | NASDAQ | AI, datacenter, GPUs, hyperscalers, Pricing power, semiconductors | Login |
| Jan 22, 2026 | Fund Letters | Emerson Bluhm | TSM | Taiwan Semiconductor Manufacturing Company | Semiconductors | Semiconductor Foundries | Bull | New York Stock Exchange | advanced nodes, AI demand, Foundry, Pricing power, scale | Login |
| Oct 20, 2025 | Fund Letters | Emerson Bluhm | TSM | TSMC | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NYSE | AI, CapEx, Foundry, Margins, Packaging, semiconductors | Login |
| Jan 22, 2026 | Fund Letters | Emerson Bluhm | CVNA | Carvana Co. | Internet Retail | E-commerce Retail | Bull | New York Stock Exchange | ecommerce, Lending Margins, Logistics, scale, Unit growth | Login |
| Oct 20, 2025 | Fund Letters | Emerson Bluhm | APP | AppLovin Corp. | Communication Services | Digital Advertising | Bull | NASDAQ | adtech, AI, ecommerce, Margins, Scalability, Self-serve | Login |
| Jan 22, 2026 | Fund Letters | Emerson Bluhm | KVYO | Klaviyo Inc. | Software | Marketing Software | Bull | New York Stock Exchange | Agentic Commerce, International Growth, Marketing automation, Platform Shift, revenue acceleration | Login |
| Oct 20, 2025 | Fund Letters | Emerson Bluhm | RBLX | Roblox Corp. | Communication Services | Interactive Media & Services | Bull | NYSE | AI, Engagement, Gaming, monetization, User-generated content | Login |
| Jan 22, 2026 | Fund Letters | Emerson Bluhm | SHOP | Shopify Inc. | IT Services | E-commerce Platforms | Bull | New York Stock Exchange | AI tools, Gmv Growth, Merchant Services, Payments, Platform Scale | Login |
| Oct 20, 2025 | Fund Letters | Emerson Bluhm | DUOL | Duolingo Inc. | Information Technology | Education Technology | Bull | NASDAQ | AI, Edtech, gamification, monetization, Subscription | Login |
| Jan 22, 2026 | Fund Letters | Emerson Bluhm | NU | Nu Holdings Ltd. | Banks | Digital Banks | Bull | New York Stock Exchange | credit quality, digital banking, Financial Inclusion, Latin America, Unit economics | Login |
| Oct 20, 2025 | Fund Letters | Emerson Bluhm | MNDY | monday.com Ltd. | Information Technology | Application Software | Bull | NASDAQ | AI, Margins, SaaS, User growth, Work management | Login |
| Jan 22, 2026 | Fund Letters | Emerson Bluhm | NFLX | Netflix Inc. | Entertainment | Streaming Services | Bull | NASDAQ | consolidation, Content Ownership, Engagement, IP strategy, Pricing power | Login |
| Oct 20, 2025 | Fund Letters | Emerson Bluhm | SNOW | Snowflake Inc. | Information Technology | Data Warehousing | Bear | NYSE | AI, cloud, Consumption, Data, growth, Re-rating | Login |
| Jan 22, 2026 | Fund Letters | Emerson Bluhm | MSFT | Microsoft Corp. | Software | System Software | Bull | NASDAQ | AI infrastructure, capacity expansion, Cloud Scale, Enterprise software, hyperscale | Login |
| Jul 21, 2025 | Fund Letters | Emerson Bluhm | NVDA | NVIDIA Corporation | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | AI, cloud, datacenters, GPUs, semiconductors | Login |
| Jan 22, 2026 | Fund Letters | Emerson Bluhm | GOOGL | Alphabet Inc. | Interactive Media & Services | Digital Advertising | Bull | NASDAQ | Ai Assistants, Digital ads, Optionality, Platform Ecosystem, Search Intent | Login |
| Jul 21, 2025 | Fund Letters | Emerson Bluhm | NFLX | Netflix, Inc. | Communication Services | Entertainment | Bull | NASDAQ | advertising, Content, Streaming, Subscriptions, Video | Login |
| Jan 22, 2026 | Fund Letters | Emerson Bluhm | AVGO | Broadcom Inc. | Semiconductors | Semiconductor Infrastructure | Bull | NASDAQ | Ai Scaling, custom silicon, data centers, Ethernet, Networking | Login |
| Jul 21, 2025 | Fund Letters | Emerson Bluhm | TEAM | Atlassian Corporation | Information Technology | Application Software | Bull | NASDAQ | cloud, Collaboration, enterprise, productivity, Software | Login |
| Jan 22, 2026 | Fund Letters | Emerson Bluhm | PLTR | Palantir Technologies Inc. | Software | Data Analytics Software | Bull | New York Stock Exchange | Data-integration, Government Tech, Mission-Critical, Operational Ai, workflow automation | Login |
| Oct 20, 2025 | Fund Letters | Emerson Bluhm | NVDA | NVIDIA Corporation | Information Technology | Semiconductors | Bull | NASDAQ | AI, datacenter, GPUs, hyperscalers, Pricing power, semiconductors | Login |
| Jul 21, 2025 | Fund Letters | Emerson Bluhm | OKTA | Okta, Inc. | Information Technology | Systems Software | Bull | NASDAQ | cybersecurity, enterprise, Identity, SaaS, Zero_Trust | Login |
| Oct 20, 2025 | Fund Letters | Emerson Bluhm | TSM | TSMC | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NYSE | AI, CapEx, Foundry, Margins, Packaging, semiconductors | Login |
| Jul 21, 2025 | Fund Letters | Emerson Bluhm | V | Visa Inc. | Financials | Data Processing & Outsourced Services | Bull | New York Stock Exchange | Cards, Cashless, Fintech, Networks, Payments | Login |
| Oct 20, 2025 | Fund Letters | Emerson Bluhm | APP | AppLovin Corp. | Communication Services | Digital Advertising | Bull | NASDAQ | adtech, AI, ecommerce, Margins, Scalability, Self-serve | Login |
| Jul 21, 2025 | Fund Letters | Emerson Bluhm | PANW | Palo Alto Networks, Inc. | Information Technology | Systems Software | Bull | NASDAQ | AI, Cloud_Security, cybersecurity, Firewalls, Platforms | Login |
| Oct 20, 2025 | Fund Letters | Emerson Bluhm | RBLX | Roblox Corp. | Communication Services | Interactive Media & Services | Bull | NYSE | AI, Engagement, Gaming, monetization, User-generated content | Login |
| Jul 21, 2025 | Fund Letters | Emerson Bluhm | SPOT | Spotify Technology S.A. | Communication Services | Entertainment | Bull | New York Stock Exchange | Audio, Margins, Pricing_Power, Streaming, Subscriptions | Login |
| TICKER | COMMENTARY |
|---|---|
| AMZN | We added to our holdings in Amazon.com Inc. |
| 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. |
| ASML | ASML is the largest constituent of the MSCI EAFE Index as the critical toolmaker in the AI ecosystem. |
| AVGO | Broadcom, a leading semiconductor company and long-term holding, continued to execute well amid strong demand for custom silicon supporting AI workloads. |
| AXON | Axon Enterprise Inc. develops and produces Taser weapons and body cameras for law enforcement agencies. Investors have grown accustomed to big beats and raises from Axon. A slight beat to third-quarter projections and mixed fourth-quarter guidance triggered a -21% decline. We added to the position due to solid customer growth and retention. There are also numerous growth drivers for their business including Taser 10, bodycam 4, and their artificial intelligence software bundle. |
| CPNG | Coupang is South Korea's largest ecommerce platform by market share. Shares declined in response to higher-than-expected investment in its Taiwan expansion, and the selloff was exacerbated by a data breach that affected nearly all of its 33 million customers. We believe the market reaction is overdone. Coupang's increased spending in Taiwan reflects conviction in the opportunity and a long-term commitment to the market. |
| CVNA | Carvana is one of the largest used car retailers in the US and operates a national e-commerce platform that provides broader selection, lower costs and a more convenient customer experience than traditional dealerships. We view the company as a differentiated, vertically integrated operator with strong advantages in sourcing, logistics, fulfillment and financing that create meaningful barriers to entry. With a small share of a large market, we believe Carvana has a long runway for growth as it scales nationally and captures efficiencies from its acquisition of ADESA's US physical auction business, which adds a national network of wholesale vehicle auction facilities and supports improved unit economics. |
| 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. |
| DUOL | I have followed the company closely since the IPO since my wife was an avid user, not wanting to break her streak in learning Italian. I thought growth would drop off a cliff after COVID as happened with many other companies, and yet, quarter after quarter the company continued to execute. In fact, there are only four companies I can find that have grown revenues greater than 30% for at least the last 20 quarters in a row – MercadoLibre, Axon, Hims, and Duolingo. To have that growth endurance, you've got to be doing something right! Well, the stock was down almost 70% after the valuation got far too rich and management made it very clear they were prioritizing learning over monetization for 2026. That is the right call in my opinion, considering what the core competency of the company is. Duolingo shouldn't be thought of as a language learning app, it's an engagement machine that happens to educate. In service of its mission to make education widely available, it built the data-driven muscle of engaging users. To learn anything, the most difficult part is motivation and that is what Duolingo is good at. In fact, almost 40% of monthly users log into the app every day. For context, Snapchat is at 50%! You're telling me that an app that teaches you Spanish almost has the same level of engagement as the app where teens do all of their communication? As the company broadens its education subjects like math, music, chess, and other areas, retention should increase even more. If you get bored of learning a language, you can hop over to play some chess. And AI will allow the company to create better content for their current subjects and accelerate the broadening of the platform. Paired with the engagement muscle, Duolingo very well could become a must-have app for learning all sorts of things. This vision will take time but it's actually the exact vision of the CEO/founder. The main bear cases are AI translation and that no one actually learns anything. On the latter, it's up to the user. Duolingo can't force you to learn anything. But yes, education apps typically have very high churn. The fact that Duolingo is able to increase paid subs at a rapid rate despite the leaky bucket is incredibly impressive. On the former, language learning isn't all about practicality. For a large portion of users, they're trying to learn English and they actually really want to understand the language rather than use AI translating glasses. And secondly, Duolingo includes a structure for habit formation. The company is already embedding AI into its content program with its Max Tier so as the models improve, so should Duolingo's product. It's easy to say that high engagement, alone, isn't a moat and I'd agree but the company's core competency is A/B testing and therefore, the product improves at a much higher rate than competitors as it scales. We paid ~18x FCF, inclusive of stock-based comp. That's not super cheap but for a company with an exceptional founder and growth endurance rivaling our long-time holdings, MercadoLibre and Axon, we decided to finally start a position. |
| GOOGL | I'm willing to go bankrupt rather than lose this race. Larry Page, co-founder of Google |
| IOT | Samsara Inc. 1.5 (4.55) (0.01) |
| MELI | E-commerce was another drag. Sea Limited and MercadoLibre struggled as investors became more cautious on discretionary spending and less willing to pay up for growth. |
| META | Meta was cited as a larger position that contributed little despite what I thought was positive operating progress, representing opportunity cost in the portfolio. |
| MSFT | OpenAI's well-documented 'circular' funding with its business partners (NVIDIA, Microsoft, among others) is additional cause for concern. |
| NFLX | Netflix has built a durable economic moat around its vertically-integrated, globally-scaled streaming business. As the first company to establish a global subscription media platform within the $500 billion TV market, Netflix is now reaping the benefits of its early leadership. With more than 300 million members, Netflix enjoys the lowest content cost per subscriber in the industry. |
| NOW | In the case of ServiceNow, the stock weakened following reports of a potential large acquisition while the company has also been challenged by bearish sentiment across the software as a service or SAAS segment. |
| 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 | Nvidia sits at the top of the S&P 500 as the designer in the AI ecosystem. |
| PANW | A post-earnings pullback in Palo Alto Networks shares drove the decline in CyberArk. |
| PLTR | AI-enabled surveillance company Palantir trades at over 100 times sales. |
| 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 | We also exited Sea Limited due to significant adverse investor sentiment following a worse-than-expected earnings report where a capex announcements on logistic networks and fulfilment led to margin compression. Experience suggests that when companies go through capex cycles, sentiment can remain volatile until investors are satisfied that the expenditure will lead to a bigger and better business. |
| 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. |
| TEAM | We sold Atlassian, which produces collaboration software, as we reduced our overweight exposure to software because we feel that AI has widened the range of outcomes for predominantly seat-based revenue models. |
| TSM | TSMC leads the MSCI Emerging Markets Index as the manufacturer in the AI ecosystem. |
| V | We added to our holdings in Visa Inc. |
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