SGA - U.S. Large Cap Growth

Investor Summary

Sustainable Growth Advisers, LP was founded in 2003 and has grown to manage $22.135 billion in discretionary assets serving 273 institutional clients as of December 31, 2024. The firm is majority-owned by Virtus Investment Partners (78% ownership), a publicly traded company on NASDAQ, providing institutional backing and resources. SGA operates with approximately 40% employee equity ownership, aligning team incentives with client performance outcomes. The U.S. Large Cap Growth strategy has operated since July 2003 with a consistent investment philosophy and process, building a 22-year track record through multiple market cycles. The management team includes experienced professionals with backgrounds at leading technology and investment firms, bringing deep sector expertise and analytical capabilities. SGA maintains clean regulatory records with no material legal or disciplinary events, demonstrating strong compliance and risk management practices. The firm has achieved Global Investment Performance Standards (GIPS®) compliance with independent verification through December 2024. SGA's institutional client base and multi-channel distribution through Virtus and Morgan Stanley platforms provide stable asset flows and broad market access.

Fund Strategy

SGA's investment objective is to generate long-term capital appreciation by investing in U.S. large-cap growth companies, identifying industry-leading businesses positioned for attractive long-term revenue and earnings growth. The strategy seeks to preserve and grow capital by investing in predictable, sustainable, above-average growth companies whose earnings and cash flow growth can be sustained over a long period through pricing power, recurring revenues, and global opportunity. SGA focuses on differentiated low-risk businesses offering strong, sustainable earnings and cash flow growth over the long term through thorough bottom-up research and fundamental analysis. The investment process emphasizes identifying businesses with strong predictability over a 3-5 year horizon, focusing on pricing power, recurring revenue, and global opportunities. SGA utilizes proprietary valuation tools focused on cash flow available to shareholders and enterprise yield, measuring free cash flow as a percentage of market value. Portfolio construction maintains 25-30 concentrated holdings selected from a Qualified Company List of 105-115 companies, emphasizing conviction-weighted positions and valuation discipline. The firm integrates ESG factors systematically into the investment process, viewing sustainability considerations as integral to long-term shareholder value. SGA employs a disciplined investment committee process with multiple layers of proprietary fundamental research, meeting twice weekly to evaluate opportunities and risks.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
9.4%	6.6%	-5.4%

Executive Summary

SGA's U.S. Large Cap Growth portfolio returned 6.6% net in Q2 2026 versus 16.7% for Russell 1000 Growth as extreme momentum leadership and AI infrastructure spending drove market returns. Portfolio companies delivered median revenue and EPS growth of 15% and 20% respectively with 85% beating consensus, yet valuation multiples compressed as only 27% of index stocks outperformed. Manager initiated positions in Equinix and Arista Networks for long-term data center and networking exposure while exiting Intuit and Aon to reallocate to higher conviction opportunities. Portfolio now trades near steepest discount to Russell 1000 Growth on forward P/E in firm's 23-year history with Enterprise Yield of 3% versus 1% during TMT bubble. Key risks include momentum reversal potential, memory cycle normalization as new capacity arrives 2027-2028, and extreme index concentration. Manager maintains high conviction viewing current dislocation as creating fertile ground for subsequent outperformance as quality businesses compound predictably while trading at massive discounts. Portfolio positioned to deliver 15% revenue and 19% earnings growth over next three years.

Forward Outlook

Manager maintains high conviction in positioning despite extended underperformance, viewing current environment as creating unusually attractive opportunity. Portfolio comprised of high-quality businesses growing, generating substantial cash flows, and strengthening competitive positions while trading at valuations cheaper relative to market than at nearly any point since firm founding in 2003. As AI CapEx cycle matures, IPO calendar tests market appetite, and memory cycle normalizes, conditions for meaningful rotation toward quality U.S. compounders are quietly building. Manager expects portfolio fundamentals and valuation opportunity to set stage for attractive risk-adjusted returns moving forward.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Jul 29 2026	2026 Q2	AMZN, ANET, AON, ARM, AVGO, CP, CRM, ECL, EQIX, GOOGL, GWW, INTU, MSFT, NFLX, NOW, NVDA, WM, YUM	AI, growth, large cap, momentum, Quality, semiconductors, valuation	EQIX ANET INTU AON	SGA's quality growth portfolio delivered strong fundamentals with 15% revenue and 20% EPS growth but underperformed as extreme momentum and AI infrastructure spending dominated Q2 returns. Portfolio now trades at steepest discount to market in 23-year history despite predictable compounding from durable franchises. Manager views current valuation dislocation as unusually attractive opportunity with portfolio positioned for 15% revenue and 19% earnings growth over three years.
Apr 28 2026	2026 Q1	ARM, CP, CRM, INTU, IT, MA, MSFT, UNH, WM	AI, disruption, Geopolitical, growth, Quality, software, technology, valuation	ARM CP WM MSFT INTU CRM MA	SGA's U.S. Large Cap Growth portfolio declined 11.1% in Q1 2026, underperforming due to AI disruption fears that hammered software stocks. The firm maintains conviction in quality growth businesses trading at historically attractive valuations relative to the market. Portfolio fundamentals remain strong with expected 13% revenue and 19% earnings growth over three years, positioning for attractive risk-adjusted returns ahead.
Feb 8 2026	2025 Q4	AAPL, AMZN, ARM, AVGO, AXP, COO, CRM, DHR, GOOGL, GWW, INTU, META, MSFT, NFLX, NKE, NOW, SPGI, V, WM, YUM	AI, growth, large cap, momentum, Quality, semiconductors, valuation	GOOG COO CRM AVGO ARM MSFT META IT YUM ALC	SGA's quality growth strategy faced headwinds in 2025's extreme momentum market favoring cyclical and speculative stocks over stable compounders. Despite 3.7% returns versus 18.6% for Russell 1000 Growth, portfolio fundamentals remained strong with 12% earnings growth. Relative valuations at inception lows create attractive asymmetric opportunity as AI CapEx moderates and momentum inevitably reverses toward quality.
Sep 30 2025	2025 Q3	AAPL, ABBV, AMZN, AON, ARM, AVGO, AXP, CMG, COO, CP, CRM, DHR, ECL, GOOGL, GWW, INTU, IT, JNJ, META, MSFT, NFLX, NKE, NOW, NVDA, NVO, ORCL, PLTR, SNPS, SPGI, TSLA, UNH, V, WCN, WDAY, WM, YUM	AI, growth, large cap, momentum, Quality, technology, underperformance, valuation	-	SGA's quality growth strategy underperformed in Q3 as momentum and AI speculation dominated markets. Quality stocks hit 10-year lows versus broader markets, creating attractive long-term opportunities as valuation premiums compressed significantly. The manager maintains conviction that current market extremes favoring lower-quality cyclicals over predictable growth companies represent cyclical deviation rather than structural change.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Jul 29 2026

2026 Q2

AMZN, ANET, AON, ARM, AVGO, CP, CRM, ECL, EQIX, GOOGL, GWW, INTU, MSFT, NFLX, NOW, NVDA, WM, YUM

AI, growth, large cap, momentum, Quality, semiconductors, valuation

EQIX
ANET
INTU
AON

SGA's quality growth portfolio delivered strong fundamentals with 15% revenue and 20% EPS growth but underperformed as extreme momentum and AI infrastructure spending dominated Q2 returns. Portfolio now trades at steepest discount to market in 23-year history despite predictable compounding from durable franchises. Manager views current valuation dislocation as unusually attractive opportunity with portfolio positioned for 15% revenue and 19% earnings growth over three years.

Apr 28 2026

2026 Q1

ARM, CP, CRM, INTU, IT, MA, MSFT, UNH, WM

AI, disruption, Geopolitical, growth, Quality, software, technology, valuation

ARM
CP
WM
MSFT
INTU
CRM
MA

SGA's U.S. Large Cap Growth portfolio declined 11.1% in Q1 2026, underperforming due to AI disruption fears that hammered software stocks. The firm maintains conviction in quality growth businesses trading at historically attractive valuations relative to the market. Portfolio fundamentals remain strong with expected 13% revenue and 19% earnings growth over three years, positioning for attractive risk-adjusted returns ahead.

Feb 8 2026

2025 Q4

AAPL, AMZN, ARM, AVGO, AXP, COO, CRM, DHR, GOOGL, GWW, INTU, META, MSFT, NFLX, NKE, NOW, SPGI, V, WM, YUM

AI, growth, large cap, momentum, Quality, semiconductors, valuation

GOOG
COO
CRM
AVGO
ARM
MSFT
META
IT
YUM
ALC

SGA's quality growth strategy faced headwinds in 2025's extreme momentum market favoring cyclical and speculative stocks over stable compounders. Despite 3.7% returns versus 18.6% for Russell 1000 Growth, portfolio fundamentals remained strong with 12% earnings growth. Relative valuations at inception lows create attractive asymmetric opportunity as AI CapEx moderates and momentum inevitably reverses toward quality.

Sep 30 2025

2025 Q3

AAPL, ABBV, AMZN, AON, ARM, AVGO, AXP, CMG, COO, CP, CRM, DHR, ECL, GOOGL, GWW, INTU, IT, JNJ, META, MSFT, NFLX, NKE, NOW, NVDA, NVO, ORCL, PLTR, SNPS, SPGI, TSLA, UNH, V, WCN, WDAY, WM, YUM

AI, growth, large cap, momentum, Quality, technology, underperformance, valuation

SGA's quality growth strategy underperformed in Q3 as momentum and AI speculation dominated markets. Quality stocks hit 10-year lows versus broader markets, creating attractive long-term opportunities as valuation premiums compressed significantly. The manager maintains conviction that current market extremes favoring lower-quality cyclicals over predictable growth companies represent cyclical deviation rather than structural change.

QUARTER	THEMES	TAGS
2026 Q2	AI AI infrastructure spending drove Q2 market surge with hyperscaler CapEx increases supporting parabolic rallies in memory, CPU, and networking equipment providers. Manager views current AI valuations and spillover beneficiaries with caution, noting that short-term supply shortages have benefited both high- and low-quality companies. While constructive on long-term AI potential, manager expects normalization of elevated margins and pricing for cyclical beneficiaries.	Infrastructure Hyperscalers Memory Networking Valuations
	Semiconductors Semiconductor and Semi Equipment stocks returned 32% in Q2, accounting for 44% of quarterly index return and reaching all-time high index weight of 33%. Manager distinguishes between tier 1 providers with durable competitive advantages versus spillover beneficiaries and cyclical memory providers enjoying temporary pricing power. Expects normalization as supply constraints ease and new fabrication capacity comes online in 2027-2028.	Memory Equipment Cyclicality Supply Pricing
	Momentum Momentum leadership returned with vengeance in Q2 with S&P 500 Momentum Index rising 44%, marking historic high after three years of leadership. Performance gap between momentum and quality indices as wide as 1999, a nearly three standard deviation event. Manager views extreme momentum environment as creating attractive opportunities in quality growth companies trading at massive discounts.	Leadership Quality Valuation Dispersion
	Quality Portfolio companies delivered median revenue and EPS growth of 15% and 20% respectively with 85%+ beating consensus, yet valuation multiples compressed YTD. Portfolio trades near steepest discount to Russell 1000 Growth Index in twenty-plus year history despite strong fundamental performance. Manager emphasizes importance of durability and competitive advantages through AI disruption, viewing current dislocation as fertile ground for subsequent outperformance.	Fundamentals Valuation Durability Competitive Advantage
	Data Centers Initiated position in Equinix as leading global data center provider with 95% recurring revenue and strong network effects. Growth opportunity supported by AI inferencing ramps, power demand, and distributed connectivity-intensive applications. Company particularly well positioned to benefit from globally interconnected footprint and neutral platform as demand continues to outpace supply.	Colocation Interconnection Power Network Effects
	Cloud Alphabet benefited from narrative as well-positioned AI beneficiary with full-stack exposure spanning infrastructure, foundational models, developer tools, and scaled consumer applications. Q1 report highlighted robust ongoing demand for AI compute resources. Manager maintains above-average weight viewing company as high-quality long-term compounder with durable pricing power from leading global platforms and network effects.	Infrastructure Computing Platforms Network Effects
	Networking Initiated position in Arista Networks focused on software-driven cloud architectures for hyperscalers with superior product performance supporting stable 60-65% gross margins and 40%+ operating margins. Once deployed, becomes deeply embedded in customer operations creating meaningful switching costs. Well-positioned to benefit from structural buildout of data center networking and proliferation of cloud and AI driven workloads.	Switching Hyperscale Architecture Margins
	Valuation Portfolio valuation relative to market rarely been better in firm's 23-year history with Enterprise Yield of 3% today versus 1% during TMT bubble. Portfolio trades near steepest discount to Russell 1000 Growth Index on forward P/E in firm history despite companies delivering growth in line with estimates. Manager views current valuation compression as emblematic of investor sentiment rather than deteriorating business quality, creating unusually attractive opportunity.	Discount Enterprise Yield Multiples Opportunity
2026 Q1	AI AI disruption fears dominated the market in Q1, with software stocks declining roughly 25% year-to-date as new product releases from Anthropic stirred fears about business model durability. SGA believes AI presents a double-edged sword, creating uncertainty but also opportunities for well-positioned market leaders with trusted partner positions.	Software Disruption Enterprise Automation Agentic
	Software Software stocks were among the hardest hit during Q1, declining roughly 25% year-to-date due to AI disruption fears. SGA maintains that their software holdings like Salesforce, ServiceNow, Microsoft, and Intuit are highly entrenched incumbents managing mission-critical workflows that are difficult to replicate through AI.	Enterprise SaaS Mission Critical Incumbents Workflows
	Quality SGA emphasizes their focus on high-quality businesses with strong balance sheets, durable cash flows, and diversified end markets that provide resilience to short-term geopolitical shocks. The portfolio continues to compound revenues and earnings in line with estimates despite market volatility.	Balance Sheets Cash Flows Resilience Compounding Fundamentals
	Growth The portfolio is expected to generate 13% revenue and 19% earnings growth over the next three years. SGA continues to focus on companies anticipated to achieve consistent mid-teens earnings growth with reduced variability, supported by predictable revenue and cash flow generation.	Earnings Revenue Predictable Consistent Mid-teens
2025 Q4	AI Artificial intelligence enthusiasm supported large-cap growth companies and drove strong corporate earnings, particularly in technology. AI-related investment has been a major contributor to recent growth but is expected to slow from exceptionally fast levels. Much of today's technology-led earnings growth is supported by long-term capital investment in AI, energy, and infrastructure.	Technology Investment Growth Infrastructure Capital
	Earnings Strong corporate earnings drove market gains, particularly in technology and communication services. Current valuation levels suggest returns will depend more on earnings durability and cash-flow generation than on further multiple expansion. Continued earnings growth in the low-double-digit range is expected to support market performance.	Corporate Technology Growth Valuation Cash Flow
	Rates The Federal Reserve cut rates by 25 basis points in December, bringing the policy rate to 3.5%-3.75%. The Fed cut rates three times in 2025 and currently expects one more cut in 2026. Markets are pricing in roughly two additional cuts, which would bring the Fed funds rate to around 3%. Higher yields have improved income potential with the 10-year Treasury yield ending at 4.18%.	Federal Reserve Policy Treasury Income Monetary
	Dollar A weaker U.S. dollar, down 9.4% in 2025, provided a notable tailwind for foreign assets. The dollar decline helped boost international equity returns, with European equities gaining 35.4% and emerging markets rising 33.6% in U.S. dollar terms. Most of the international outperformance occurred in the first quarter, helped by the nearly 10% decline in the dollar.	Currency International Foreign European Emerging Markets
	Volatility Investor confidence has improved since April's tariff episode, reflected through a meaningful decline in market volatility in both stock and bond markets. The VIX and MOVE indices spiked after President Trump's tariff announcement but have since moved back to levels associated with more stable markets. Lower volatility reflects less anxiety around trade policy and Fed policy, supporting investor confidence.	Market Confidence Trade Policy Stability Risk
2025 Q3	AI AI infrastructure buildout remains a dominant market force driving speculation and momentum trading. While AI benefits some portfolio companies like Nvidia, Microsoft, Alphabet, Meta, and Amazon, the manager warns of bubble dynamics similar to the dot-com era. Historical parallels suggest infrastructure beneficiaries may face disappointment while long-term winners emerge later as companies building services on top of infrastructure.	Infrastructure Speculation Productivity Capex Bubble
	Quality Quality stocks have underperformed significantly and are at a 10-year low relative to the broader market. The manager views this as a cyclical deviation rather than structural weakness, creating attractive opportunities for long-term investors. Quality's valuation premium has compressed from 15% to 7%, approaching Covid-era lows.	Underperformance Valuation Cyclical Opportunity Premium
	Momentum Price momentum has been performing exceptionally well, comparable only to the TMT Boom period. Lower-quality cyclical and speculative stocks have delivered outsized returns while defensive and predictable companies have lagged. The current environment represents extreme momentum-chasing and FOMO behavior.	Speculation Cyclicals FOMO Extremes TMT

QUARTER

THEMES

AI

AI infrastructure spending drove Q2 market surge with hyperscaler CapEx increases supporting parabolic rallies in memory, CPU, and networking equipment providers. Manager views current AI valuations and spillover beneficiaries with caution, noting that short-term supply shortages have benefited both high- and low-quality companies. While constructive on long-term AI potential, manager expects normalization of elevated margins and pricing for cyclical beneficiaries.

Infrastructure Hyperscalers Memory Networking Valuations

Semiconductors

Semiconductor and Semi Equipment stocks returned 32% in Q2, accounting for 44% of quarterly index return and reaching all-time high index weight of 33%. Manager distinguishes between tier 1 providers with durable competitive advantages versus spillover beneficiaries and cyclical memory providers enjoying temporary pricing power. Expects normalization as supply constraints ease and new fabrication capacity comes online in 2027-2028.

Memory Equipment Cyclicality Supply Pricing

Momentum

Momentum leadership returned with vengeance in Q2 with S&P 500 Momentum Index rising 44%, marking historic high after three years of leadership. Performance gap between momentum and quality indices as wide as 1999, a nearly three standard deviation event. Manager views extreme momentum environment as creating attractive opportunities in quality growth companies trading at massive discounts.

Leadership Quality Valuation Dispersion

Quality

Portfolio companies delivered median revenue and EPS growth of 15% and 20% respectively with 85%+ beating consensus, yet valuation multiples compressed YTD. Portfolio trades near steepest discount to Russell 1000 Growth Index in twenty-plus year history despite strong fundamental performance. Manager emphasizes importance of durability and competitive advantages through AI disruption, viewing current dislocation as fertile ground for subsequent outperformance.

Fundamentals Valuation Durability Competitive Advantage

Data Centers

Initiated position in Equinix as leading global data center provider with 95% recurring revenue and strong network effects. Growth opportunity supported by AI inferencing ramps, power demand, and distributed connectivity-intensive applications. Company particularly well positioned to benefit from globally interconnected footprint and neutral platform as demand continues to outpace supply.

Colocation Interconnection Power Network Effects

Cloud

Alphabet benefited from narrative as well-positioned AI beneficiary with full-stack exposure spanning infrastructure, foundational models, developer tools, and scaled consumer applications. Q1 report highlighted robust ongoing demand for AI compute resources. Manager maintains above-average weight viewing company as high-quality long-term compounder with durable pricing power from leading global platforms and network effects.

Infrastructure Computing Platforms Network Effects

Networking

Initiated position in Arista Networks focused on software-driven cloud architectures for hyperscalers with superior product performance supporting stable 60-65% gross margins and 40%+ operating margins. Once deployed, becomes deeply embedded in customer operations creating meaningful switching costs. Well-positioned to benefit from structural buildout of data center networking and proliferation of cloud and AI driven workloads.

Switching Hyperscale Architecture Margins

Valuation

Portfolio valuation relative to market rarely been better in firm's 23-year history with Enterprise Yield of 3% today versus 1% during TMT bubble. Portfolio trades near steepest discount to Russell 1000 Growth Index on forward P/E in firm history despite companies delivering growth in line with estimates. Manager views current valuation compression as emblematic of investor sentiment rather than deteriorating business quality, creating unusually attractive opportunity.

Discount Enterprise Yield Multiples Opportunity

2026 Q1

AI

AI disruption fears dominated the market in Q1, with software stocks declining roughly 25% year-to-date as new product releases from Anthropic stirred fears about business model durability. SGA believes AI presents a double-edged sword, creating uncertainty but also opportunities for well-positioned market leaders with trusted partner positions.

Software Disruption Enterprise Automation Agentic

Software

Software stocks were among the hardest hit during Q1, declining roughly 25% year-to-date due to AI disruption fears. SGA maintains that their software holdings like Salesforce, ServiceNow, Microsoft, and Intuit are highly entrenched incumbents managing mission-critical workflows that are difficult to replicate through AI.

Enterprise SaaS Mission Critical Incumbents Workflows

Quality

SGA emphasizes their focus on high-quality businesses with strong balance sheets, durable cash flows, and diversified end markets that provide resilience to short-term geopolitical shocks. The portfolio continues to compound revenues and earnings in line with estimates despite market volatility.

Balance Sheets Cash Flows Resilience Compounding Fundamentals

Growth

The portfolio is expected to generate 13% revenue and 19% earnings growth over the next three years. SGA continues to focus on companies anticipated to achieve consistent mid-teens earnings growth with reduced variability, supported by predictable revenue and cash flow generation.

Earnings Revenue Predictable Consistent Mid-teens

2025 Q4

AI

Artificial intelligence enthusiasm supported large-cap growth companies and drove strong corporate earnings, particularly in technology. AI-related investment has been a major contributor to recent growth but is expected to slow from exceptionally fast levels. Much of today's technology-led earnings growth is supported by long-term capital investment in AI, energy, and infrastructure.

Technology Investment Growth Infrastructure Capital

Earnings

Strong corporate earnings drove market gains, particularly in technology and communication services. Current valuation levels suggest returns will depend more on earnings durability and cash-flow generation than on further multiple expansion. Continued earnings growth in the low-double-digit range is expected to support market performance.

Corporate Technology Growth Valuation Cash Flow

Rates

The Federal Reserve cut rates by 25 basis points in December, bringing the policy rate to 3.5%-3.75%. The Fed cut rates three times in 2025 and currently expects one more cut in 2026. Markets are pricing in roughly two additional cuts, which would bring the Fed funds rate to around 3%. Higher yields have improved income potential with the 10-year Treasury yield ending at 4.18%.

Federal Reserve Policy Treasury Income Monetary

Dollar

A weaker U.S. dollar, down 9.4% in 2025, provided a notable tailwind for foreign assets. The dollar decline helped boost international equity returns, with European equities gaining 35.4% and emerging markets rising 33.6% in U.S. dollar terms. Most of the international outperformance occurred in the first quarter, helped by the nearly 10% decline in the dollar.

Currency International Foreign European Emerging Markets

Volatility

Investor confidence has improved since April's tariff episode, reflected through a meaningful decline in market volatility in both stock and bond markets. The VIX and MOVE indices spiked after President Trump's tariff announcement but have since moved back to levels associated with more stable markets. Lower volatility reflects less anxiety around trade policy and Fed policy, supporting investor confidence.

Market Confidence Trade Policy Stability Risk

2025 Q3

AI

AI infrastructure buildout remains a dominant market force driving speculation and momentum trading. While AI benefits some portfolio companies like Nvidia, Microsoft, Alphabet, Meta, and Amazon, the manager warns of bubble dynamics similar to the dot-com era. Historical parallels suggest infrastructure beneficiaries may face disappointment while long-term winners emerge later as companies building services on top of infrastructure.

Infrastructure Speculation Productivity Capex Bubble

Quality

Quality stocks have underperformed significantly and are at a 10-year low relative to the broader market. The manager views this as a cyclical deviation rather than structural weakness, creating attractive opportunities for long-term investors. Quality's valuation premium has compressed from 15% to 7%, approaching Covid-era lows.

Underperformance Valuation Cyclical Opportunity Premium

Momentum

Price momentum has been performing exceptionally well, comparable only to the TMT Boom period. Lower-quality cyclical and speculative stocks have delivered outsized returns while defensive and predictable companies have lagged. The current environment represents extreme momentum-chasing and FOMO behavior.

Speculation Cyclicals FOMO Extremes TMT

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Jul 29, 2026	Fund Letters	SGA - U.S. Large Cap Growth	EQIX	Equinix	REIT - Specialty	Specialized REITs	Bull	NASDAQ	AI infrastructure, Colocation, data center, digital infrastructure, growth, Interconnection, network effects, recurring revenue, REIT	Login
Jul 29, 2026	Fund Letters	SGA - U.S. Large Cap Growth	ANET	Arista Networks	Computer Hardware	Communications Equipment	Bull	New York Stock Exchange	AI workloads, cloud infrastructure, data center, growth, hyperscale, networking equipment, recurring revenue, software platform, Technology Refresh	Login
Jul 29, 2026	Fund Letters	SGA - U.S. Large Cap Growth	INTU	Intuit	Software - Application	Application Software	Bear	NASDAQ	Application Software, Consumer Software, Diy-tax, execution risk, exit, Mailchimp, Small Business Software, tax preparation	Login
Jul 29, 2026	Fund Letters	SGA - U.S. Large Cap Growth	AON	Aon	Insurance Brokers	Insurance Brokers	Neutral	New York Stock Exchange	cyclical headwinds, exit, Insurance Broker, Insurance Pricing Cycle, portfolio reallocation, professional services, Risk Solutions	Login
Apr 28, 2026	Fund Letters	SGA - U.S. Large Cap Growth	ARM	Arm Holdings	Semiconductors	Semiconductors & Semiconductor Equipment	Bull	NASDAQ	AI, data center, embedded systems, hyperscalers, Mobile computing, Power Efficient, royalty model, semiconductors	Login
Apr 28, 2026	Fund Letters	SGA - U.S. Large Cap Growth	CP	Canadian Pacific Kansas City	Railroads	Railroads	Bull	New York Stock Exchange	Cross-border Trade, freight transportation, margin expansion, Nearshoring, Psr, railroad, share repurchase, Tri-national Network	Login
Apr 28, 2026	Fund Letters	SGA - U.S. Large Cap Growth	WM	Waste Management	Waste Management	Environmental & Facilities Services	Bull	New York Stock Exchange	defensive, environmental services, Free Cash Flow, Landfill Infrastructure, Pricing power, RNG, vertically integrated, waste management	Login
Apr 28, 2026	Fund Letters	SGA - U.S. Large Cap Growth	MSFT	Microsoft	Software - Infrastructure	Software	Bull	NASDAQ	AI investments, Azure, capital intensity, Cloud computing, Enterprise software, Productivity Suite, recurring revenue, technology integration	Login
Apr 28, 2026	Fund Letters	SGA - U.S. Large Cap Growth	INTU	Intuit	Software - Application	Software	Bull	NASDAQ	AI disruption, financial software, GenAI, QuickBooks, recurring revenue, SMB Accounting, Tax software, TurboTax	Login
Apr 28, 2026	Fund Letters	SGA - U.S. Large Cap Growth	CRM	Salesforce	Software - Application	Software	Bull	New York Stock Exchange	Agentforce, Agentic AI, bookings growth, Cloud software, CRM Software, Enterprise software, recurring revenue, share repurchase	Login
Apr 28, 2026	Fund Letters	SGA - U.S. Large Cap Growth	MA	Mastercard	Credit Services	Data Processing & Outsourced Services	Bull	New York Stock Exchange	asset-light model, digital payments, Electronic Commerce, Global network, payment processing, Pricing power, Regulatory risk, Transaction Volume	Login
Feb 8, 2026	Fund Letters	Tucker Brown	GOOG	Alphabet Inc	Communication Services	Interactive Media & Services	Bull	NASDAQ	advertising, AI, cloud, Margins, monetization	Login
Feb 8, 2026	Fund Letters	Tucker Brown	COO	Cooper Companies Inc	Health Care	Health Care Supplies	Bull	New York Stock Exchange	cashflow, Governance, innovation, Margins, Medical devices	Login
Feb 8, 2026	Fund Letters	Tucker Brown	CRM	Salesforce Inc	Information Technology	Application Software	Bull	New York Stock Exchange	AI, ARR, buybacks, cloud, Software	Login
Feb 8, 2026	Fund Letters	Tucker Brown	AVGO	Broadcom Inc	Information Technology	Semiconductors	Bull	NASDAQ	AI, inference, infrastructure, Margins, semiconductors	Login
Feb 8, 2026	Fund Letters	Tucker Brown	ARM	Arm Holdings plc	Information Technology	Semiconductors	Bear	NASDAQ	Margins, Overhang, royalties, semiconductors, Volatility	Login
Feb 8, 2026	Fund Letters	Tucker Brown	MSFT	Microsoft Corp	Information Technology	Systems Software	Bull	NASDAQ	AI, CapEx, cloud, enterprise, Recurring	Login
Feb 8, 2026	Fund Letters	Tucker Brown	META	Meta Platforms Inc	Communication Services	Interactive Media & Services	Bull	NASDAQ	advertising, AI, CapEx, Engagement, monetization	Login
Feb 8, 2026	Fund Letters	Tucker Brown	IT	Gartner Inc	Information Technology	IT Consulting & Other Services	Bull	New York Stock Exchange	cashflow, Governance, Incentives, Margins, Subscriptions	Login
Feb 8, 2026	Fund Letters	Tucker Brown	YUM	Yum! Brands Inc	Consumer Discretionary	Restaurants	Bull	New York Stock Exchange	Branding, cashflow, ESG, Franchising, Regulation	Login
Feb 8, 2026	Fund Letters	Tucker Brown	ALC	Alcon Inc	Health Care	Health Care Equipment	Bull	New York Stock Exchange	eyecare, Governance, Incentives, ROIC, Sustainability	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Jul 29, 2026

Fund Letters

SGA - U.S. Large Cap Growth

EQIX

Equinix

REIT - Specialty

Specialized REITs

Bull

NASDAQ

AI infrastructure, Colocation, data center, digital infrastructure, growth, Interconnection, network effects, recurring revenue, REIT

Jul 29, 2026

Fund Letters

SGA - U.S. Large Cap Growth

ANET

Arista Networks

Computer Hardware

Communications Equipment

Bull

New York Stock Exchange

AI workloads, cloud infrastructure, data center, growth, hyperscale, networking equipment, recurring revenue, software platform, Technology Refresh

Jul 29, 2026

Fund Letters

SGA - U.S. Large Cap Growth

INTU

Intuit

Software - Application

Application Software

Bear

NASDAQ

Application Software, Consumer Software, Diy-tax, execution risk, exit, Mailchimp, Small Business Software, tax preparation

Jul 29, 2026

Fund Letters

SGA - U.S. Large Cap Growth

AON

Aon

Insurance Brokers

Neutral

New York Stock Exchange

cyclical headwinds, exit, Insurance Broker, Insurance Pricing Cycle, portfolio reallocation, professional services, Risk Solutions

Apr 28, 2026

Fund Letters

SGA - U.S. Large Cap Growth

ARM

Arm Holdings

Semiconductors

Semiconductors & Semiconductor Equipment

Bull

NASDAQ

AI, data center, embedded systems, hyperscalers, Mobile computing, Power Efficient, royalty model, semiconductors

Apr 28, 2026

Fund Letters

SGA - U.S. Large Cap Growth

Canadian Pacific Kansas City

Railroads

Bull

New York Stock Exchange

Cross-border Trade, freight transportation, margin expansion, Nearshoring, Psr, railroad, share repurchase, Tri-national Network

Apr 28, 2026

Fund Letters

SGA - U.S. Large Cap Growth

Waste Management

Environmental & Facilities Services

Bull

New York Stock Exchange

defensive, environmental services, Free Cash Flow, Landfill Infrastructure, Pricing power, RNG, vertically integrated, waste management

Apr 28, 2026

Fund Letters

SGA - U.S. Large Cap Growth

MSFT

Microsoft

Software - Infrastructure

Software

Bull

NASDAQ

AI investments, Azure, capital intensity, Cloud computing, Enterprise software, Productivity Suite, recurring revenue, technology integration

Apr 28, 2026

Fund Letters

SGA - U.S. Large Cap Growth

INTU

Intuit

Software - Application

Software

Bull

NASDAQ

AI disruption, financial software, GenAI, QuickBooks, recurring revenue, SMB Accounting, Tax software, TurboTax

Apr 28, 2026

Fund Letters

SGA - U.S. Large Cap Growth

CRM

Salesforce

Software - Application

Software

Bull

New York Stock Exchange

Agentforce, Agentic AI, bookings growth, Cloud software, CRM Software, Enterprise software, recurring revenue, share repurchase

Apr 28, 2026

Fund Letters

SGA - U.S. Large Cap Growth

Mastercard

Credit Services

Data Processing & Outsourced Services

Bull

New York Stock Exchange

asset-light model, digital payments, Electronic Commerce, Global network, payment processing, Pricing power, Regulatory risk, Transaction Volume

Feb 8, 2026

Fund Letters

Tucker Brown

GOOG

Alphabet Inc

Communication Services

Interactive Media & Services

Bull

NASDAQ

advertising, AI, cloud, Margins, monetization

Feb 8, 2026

Fund Letters

Tucker Brown

COO

Cooper Companies Inc

Health Care

Health Care Supplies

Bull

New York Stock Exchange

cashflow, Governance, innovation, Margins, Medical devices

Feb 8, 2026

Fund Letters

Tucker Brown

CRM

Salesforce Inc

Information Technology

Application Software

Bull

New York Stock Exchange

AI, ARR, buybacks, cloud, Software

Feb 8, 2026

Fund Letters

Tucker Brown

AVGO

Broadcom Inc

Information Technology

Semiconductors

Bull

NASDAQ

AI, inference, infrastructure, Margins, semiconductors

Feb 8, 2026

Fund Letters

Tucker Brown

ARM

Arm Holdings plc

Information Technology

Semiconductors

Bear

NASDAQ

Margins, Overhang, royalties, semiconductors, Volatility

Feb 8, 2026

Fund Letters

Tucker Brown

MSFT

Microsoft Corp

Information Technology

Systems Software

Bull

NASDAQ

AI, CapEx, cloud, enterprise, Recurring

Feb 8, 2026

Fund Letters

Tucker Brown

META

Meta Platforms Inc

Communication Services

Interactive Media & Services

Bull

NASDAQ

advertising, AI, CapEx, Engagement, monetization

Feb 8, 2026

Fund Letters

Tucker Brown

Gartner Inc

Information Technology

IT Consulting & Other Services

Bull

New York Stock Exchange

cashflow, Governance, Incentives, Margins, Subscriptions

Feb 8, 2026

Fund Letters

Tucker Brown

YUM

Yum! Brands Inc

Consumer Discretionary

Restaurants

Bull

New York Stock Exchange

Branding, cashflow, ESG, Franchising, Regulation

Feb 8, 2026

Fund Letters

Tucker Brown

ALC

Alcon Inc

Health Care

Health Care Equipment

Bull

New York Stock Exchange

eyecare, Governance, Incentives, ROIC, Sustainability

TICKER	COMMENTARY
EQIX	A position in Equinix, a leading global data center provider, was initiated during the quarter. The company sells space, power, and connectivity services across a global footprint, binding strategic clients to its facilities through interconnection and co-placement for low-latency and high-bandwidth services. Equinix is a familiar name for SGA, having been a portfolio holding for ten years before being sold in 2024 as the growth rate had slowed and management was in the midst of a leadership transition. Both dynamics have since reversed, with growth re-accelerating as AI inferencing ramps and power demand remains high, and with new leaders now announced and in place. Approximately 95% of revenue is recurring and supported by contracts that typically span two to five years, while customer churn has historically remained low, reflecting the critical nature of its services. Once customers establish connections within Equinix's ecosystem, the cost and risk of migrating elsewhere can be significant, strengthening retention and creating a durable revenue base. Equinix's pricing power stems from the unique network effects embedded in its platform. The company's ability to connect customers with hundreds of networks and business partners reduces latency, lowers traffic transit costs, and creates increasingly valuable digital ecosystems. As these ecosystems expand, customers derive greater utility from remaining on the platform, enabling Equinix to command premium pricing and sustain attractive returns on new investments. Recent operating trends reinforce this view, with management highlighting strong bookings, healthy interconnection growth, record-low churn, and robust demand across geographies. The company's growth opportunity is supported by several secular tailwinds, including the expansion of AI workloads, increasing enterprise connectivity requirements, growing digital ecosystems, and continued customer expansion across regions. Management has noted that demand continues to outpace supply, while interconnection services remain one of the fastest-growing parts of the business. We believe Equinix is particularly well positioned to benefit from increasingly distributed and connectivity-intensive AI applications given its globally interconnected footprint and neutral platform.
ANET	We initiated a new position in Arista Networks, a high-performance networking company focused on software-driven cloud architectures for hyperscalers, cloud providers, and other high-performance computing environments. The company's core innovation, the Extensible Operating System (EOS), is a single, highly modular Linux-based platform that runs across all switches, enabling scalability, automation, and reliability and operational simplicity across complex network environments. Arista's focused architecture and superior product performance have supported stable gross margins of approximately 60-65% and non-GAAP operating margins above 40%, demonstrating meaningful pricing power. While approximately 85% of Arista's revenue is derived from hardware products, the business exhibits a high degree of repeatability driven by ongoing data center expansion, technology refresh cycles, and increasing network complexity. Once deployed within a hyperscale environment, Arista becomes deeply embedded in customer operations, creating meaningful switching costs and positioning the company to participate in future network expansions. Revenue durability is further supported by structural demand for data center networking and consistent upgrade cycles from 100G to 400G and increasingly 800G architectures. We view Arista as a high-quality, long-term compounder well-positioned to benefit from the structural buildout of data center networking and the proliferation of cloud and AI driven workloads.
INTU	We liquidated our position in Intuit during the quarter. Following the company's fiscal third quarter results, we became increasingly concerned with the DIY Tax weakness, continued deterioration in Mailchimp, and reduced visibility on the timing of any growth reacceleration, as well as management's ability to execute in a challenging environment. As a result, we exited the position and reallocated the capital to other higher confidence opportunities in the portfolio. Intuit was a detractor from performance during the quarter. The company reported fiscal third quarter results that included a modest revenue beat and a full-year guidance increase, though results were overshadowed by weaker than expected Consumer Tax performance. TurboTax revenue grew 7%, below guidance, with notable weakness in the DIY segment. Management cited pressure among lower income, price sensitive filers and a contraction in total IRS filers of roughly 30 basis points. Despite double-digit revenue growth and ongoing margin expansion above 40%, we became increasingly concerned with the DIY Tax weakness, continued deterioration in Mailchimp, and reduced visibility on the timing of any growth reacceleration, as well as management's ability to execute in a challenging environment. Given these factors, we chose to exit the position and reallocate the capital to higher conviction opportunities in the portfolio with clearer visibility into durable growth.
AON	We liquidated our position in Aon during the quarter. Aon continues to execute well operationally and has outperformed peers during a period of softer insurance pricing. The backdrop has become less favorable as the insurance industry entered a softer phase following several years of strong property insurance pricing driven by inflation and elevated catastrophe losses. As pricing has moderated, revenue growth across the brokerage industry has come under pressure, creating a headwind for firms whose revenues are tied to insurance premiums. Although Aon has navigated this environment better than competitors and we continue to view the underlying business as high-quality and resilient, we exited the position and reallocated the funds to a more attractive long-term growth opportunity in Arista Networks.
ARM	Arm Holdings, leading designer and licensor of CPU architectures and related subsystems, was a top contributor to performance again this quarter. The company delivered solid quarterly results, including 20% revenue growth and 12% profit growth, with continued strength in licensing activity and sustained royalty expansion despite a tougher comparison period. Management guidance reinforced confidence in maintaining roughly 20% revenue growth, supported by increasing demand for Arm-based CPUs and expanding adoption across data center and AI workloads, which helped offset expected weakness in handset markets. Confidence was further supported by evidence of strong CPU demand, improving share gains versus x86 architectures, and growing customer traction, including an expanding roster of signed partners and management's confidence in achieving long-term revenue targets. With strong pricing power, highly recurring revenues, and expanding royalty rates as Arm captures more value across the compute stack, we continue to view the company as a high-quality, long-term compounder well-positioned to benefit from the proliferation of AI and power efficient computing. We trimmed the position to a below-average weight due to valuation considerations following the stock's strong performance.
GOOGL	Alphabet was a contributor to performance during the quarter supported by the continued narrative that the company is a well-positioned beneficiary of the AI investment cycle. Its full-stack exposure spans infrastructure, foundational models, developer tools, and scaled consumer applications, providing broad participation in AI adoption. The stock benefited from the company's Q1 report which highlighted robust ongoing demand for the company's AI compute resources. We continue to view Alphabet as a high-quality, long-term compounder. Its leading global platforms, supported by strong network effects, direct user relationships, and scaled infrastructure, underpin durable pricing power and highly recurring revenue streams. The company remains well-positioned to benefit from sustained growth drivers, including the ongoing shift toward digital advertising and cloud computing, while its continued investment in AI and innovation supports its ability to reinforce its competitive position over time. We added to the position and raised the target, maintaining an above-average weight.
NVDA	Nvidia was a top contributor to performance during the quarter. The company reported strong results and introduced a new sales breakdown that highlights demand from the largest cloud companies, with the underlying numbers lining up well with its long-term outlook. Management commentary and investor focus also reflected confidence that demand remains strong despite ongoing debate around AI investment sustainability. Additionally, management reiterated sustained expectations for multi-trillion-dollar AI spending over the long term, growing contributions from both hyperscaler and non-hyperscaler customers and increasing visibility into the company's networking and emerging CPU opportunities. Networking sales now run at about $60 billion annualized, and the new Vera processor is expected to add $20 billion. Capital returns also stepped up, with a commitment to return at least half of cash to shareholders and about $25 billion of buybacks planned each quarter. While competition and AI spending debates may contribute to periodic volatility, we believe the scale of the opportunity and Nvidia's technological advantages position the company favorably over the long term. We raised the target and added to the position during the quarter, maintaining an above-average weight.
NFLX	Netflix was a detractor from returns during the quarter after the stock came under pressure despite reporting solid first quarter results in April. Revenue grew 16% year-over-year, or 14% excluding FX, and operating income rose 18%, supported by strong growth in APAC and Latin America. Second quarter revenue guidance came in roughly 1% below expectations and EBIT guidance was 5% light due to content amortization timing. Management maintained full-year guidance of 11% to 13% revenue growth (excluding FX) and approximately 20% profit growth rather than raising it, which disappointed some investors who had anticipated a lift following the recent price hike and the removal of the Warner Bros. Discovery deal overhang. With the Warner Bros. Discovery acquisition now behind it, management can refocus on the core business and deploy excess free cash flow toward AI investment and buybacks, including a new $25 billion authorization. The company continues to expand its mobile and content initiatives, while evaluating longer-term opportunities in advertising and AI-driven production tools. Over the long term, Netflix benefits from a recurring subscription model with low churn and demonstrated pricing power, supported by a broad and growing content library and meaningful global growth opportunity. We maintained an average weight position during the quarter.
CRM	Salesforce was a detractor from performance during the quarter as investor sentiment remained cautious following another quarter that merely met its guidance targets. Current remaining performance obligations (cRPO) growth were in line at roughly 9% rather than the historical pattern of beating by about a point, and the forward quarter guide was modest. Management acknowledged continued weakness in Marketing, Commerce, and Tableau (roughly 20% of revenue), partially offset by strength in Sales Cloud, Service Cloud, Slack, and Data Cloud (roughly 75% to 80% of revenue), with Sales and Service Cloud each posting seat growth in the quarter. Additionally, Agentforce annualized recurring revenue reached $1.2 billion, growing 205%. Management reiterated full-year guidance and a second-half reacceleration based on bookings strength and lower attrition, alongside a long-term double-digit organic growth target through CY29 with about 100 basis points of annual margin expansion. Despite concerns around AI-driven competition, we believe Salesforce's integration into customer business processes, large installed base, and wide product set position it well to compete effectively in the Agentic AI era, supporting low-teens earnings growth over the next three years. We maintained a below-average weight position.
MSFT	Positions in Microsoft, Waste Management, Netflix, Ecolab, and Yum! Brands were added to on weakness while also adding to our positions in Alphabet, Apple, Nvidia, and ServiceNow given their strong long-term growth prospects.
WM	Positions in Microsoft, Waste Management, Netflix, Ecolab, and Yum! Brands were added to on weakness while also adding to our positions in Alphabet, Apple, Nvidia, and ServiceNow given their strong long-term growth prospects.
ECL	Positions in Microsoft, Waste Management, Netflix, Ecolab, and Yum! Brands were added to on weakness while also adding to our positions in Alphabet, Apple, Nvidia, and ServiceNow given their strong long-term growth prospects.
YUM	Positions in Microsoft, Waste Management, Netflix, Ecolab, and Yum! Brands were added to on weakness while also adding to our positions in Alphabet, Apple, Nvidia, and ServiceNow given their strong long-term growth prospects. We met with Jon Hixon, Yum! Brands' Chief Sustainability Officer, as well as members of legal and human resources teams to discuss several topics relevant to our investment thesis, including human capital management, geopolitical and reputational risks, corporate governance, and sustainability reporting. A key focus of the engagement was Pizza Hut's ongoing strategic review and the associated human capital implications. Management outlined several retention initiatives designed to support workforce stability during the review process, including broad-based retention bonuses for employees and targeted retention awards for critical leadership and operational roles. While the company had experienced a modest increase in employee turnover, management indicated that attrition remained within expected ranges and did not represent a material operational concern. Subsequent to our engagement, Yum! announced the sale of Pizza Hut.
AMZN	Positions in Arm Holdings, Amazon, Broadcom, and Grainger were trimmed on strength while we trimmed our position in CPKC given headline risk from USMCA negotiations.
AVGO	Positions in Arm Holdings, Amazon, Broadcom, and Grainger were trimmed on strength while we trimmed our position in CPKC given headline risk from USMCA negotiations.
GWW	Positions in Arm Holdings, Amazon, Broadcom, and Grainger were trimmed on strength while we trimmed our position in CPKC given headline risk from USMCA negotiations.
NOW	Positions in Microsoft, Waste Management, Netflix, Ecolab, and Yum! Brands were added to on weakness while also adding to our positions in Alphabet, Apple, Nvidia, and ServiceNow given their strong long-term growth prospects. As part of our ongoing dialogue with ServiceNow, we met with President and Chief Legal Officer Hossein Nowbar and members of the company's legal, compensation and, human resources teams. A significant portion of the discussion focused on the company's recent acquisition activity and the importance of maintaining transparency with shareholders regarding strategic decision-making. Management disagreed with our characterization that its acquisition strategy had become more aggressive, describing the recent transactions as an unusual convergence of several deals rather than a fundamental change in approach. We emphasized that, regardless of management's intent, the lack of timely communication surrounding these transactions contributed to investor uncertainty and undermined shareholder confidence. We encouraged the company to provide clearer and more proactive disclosure around significant strategic decisions to help investors develop a better understanding of the rationale and risks associated with future acquisitions.
CP	Positions in Arm Holdings, Amazon, Broadcom, and Grainger were trimmed on strength while we trimmed our position in CPKC given headline risk from USMCA negotiations. We engaged with management of Canadian Pacific Kansas City Limited in advance of the company's annual meeting to discuss its climate strategy and a proposal on climate-related disclosures. A key topic of discussion was the company's decision to defer establishing a Science Based Targets initiative (SBTi)-validated 1.5°C-aligned emissions reduction target. While the ISS Sustainability policy recommended voting against the climate proposal due to the absence of intermediate and long-term emissions targets, management explained that the delay stemmed from the lack of a finalized intensity-based methodology from SBTi appropriate for the freight rail industry, emphasizing that CPKC remains committed to its existing goal of reducing locomotive well-to-wheel emissions intensity by 36.9% by 2030 and continues to work with SBTi as industry-specific frameworks evolve.

TICKER

COMMENTARY

EQIX

A position in Equinix, a leading global data center provider, was initiated during the quarter. The company sells space, power, and connectivity services across a global footprint, binding strategic clients to its facilities through interconnection and co-placement for low-latency and high-bandwidth services. Equinix is a familiar name for SGA, having been a portfolio holding for ten years before being sold in 2024 as the growth rate had slowed and management was in the midst of a leadership transition. Both dynamics have since reversed, with growth re-accelerating as AI inferencing ramps and power demand remains high, and with new leaders now announced and in place. Approximately 95% of revenue is recurring and supported by contracts that typically span two to five years, while customer churn has historically remained low, reflecting the critical nature of its services. Once customers establish connections within Equinix's ecosystem, the cost and risk of migrating elsewhere can be significant, strengthening retention and creating a durable revenue base. Equinix's pricing power stems from the unique network effects embedded in its platform. The company's ability to connect customers with hundreds of networks and business partners reduces latency, lowers traffic transit costs, and creates increasingly valuable digital ecosystems. As these ecosystems expand, customers derive greater utility from remaining on the platform, enabling Equinix to command premium pricing and sustain attractive returns on new investments. Recent operating trends reinforce this view, with management highlighting strong bookings, healthy interconnection growth, record-low churn, and robust demand across geographies. The company's growth opportunity is supported by several secular tailwinds, including the expansion of AI workloads, increasing enterprise connectivity requirements, growing digital ecosystems, and continued customer expansion across regions. Management has noted that demand continues to outpace supply, while interconnection services remain one of the fastest-growing parts of the business. We believe Equinix is particularly well positioned to benefit from increasingly distributed and connectivity-intensive AI applications given its globally interconnected footprint and neutral platform.

ANET

We initiated a new position in Arista Networks, a high-performance networking company focused on software-driven cloud architectures for hyperscalers, cloud providers, and other high-performance computing environments. The company's core innovation, the Extensible Operating System (EOS), is a single, highly modular Linux-based platform that runs across all switches, enabling scalability, automation, and reliability and operational simplicity across complex network environments. Arista's focused architecture and superior product performance have supported stable gross margins of approximately 60-65% and non-GAAP operating margins above 40%, demonstrating meaningful pricing power. While approximately 85% of Arista's revenue is derived from hardware products, the business exhibits a high degree of repeatability driven by ongoing data center expansion, technology refresh cycles, and increasing network complexity. Once deployed within a hyperscale environment, Arista becomes deeply embedded in customer operations, creating meaningful switching costs and positioning the company to participate in future network expansions. Revenue durability is further supported by structural demand for data center networking and consistent upgrade cycles from 100G to 400G and increasingly 800G architectures. We view Arista as a high-quality, long-term compounder well-positioned to benefit from the structural buildout of data center networking and the proliferation of cloud and AI driven workloads.

INTU

We liquidated our position in Intuit during the quarter. Following the company's fiscal third quarter results, we became increasingly concerned with the DIY Tax weakness, continued deterioration in Mailchimp, and reduced visibility on the timing of any growth reacceleration, as well as management's ability to execute in a challenging environment. As a result, we exited the position and reallocated the capital to other higher confidence opportunities in the portfolio. Intuit was a detractor from performance during the quarter. The company reported fiscal third quarter results that included a modest revenue beat and a full-year guidance increase, though results were overshadowed by weaker than expected Consumer Tax performance. TurboTax revenue grew 7%, below guidance, with notable weakness in the DIY segment. Management cited pressure among lower income, price sensitive filers and a contraction in total IRS filers of roughly 30 basis points. Despite double-digit revenue growth and ongoing margin expansion above 40%, we became increasingly concerned with the DIY Tax weakness, continued deterioration in Mailchimp, and reduced visibility on the timing of any growth reacceleration, as well as management's ability to execute in a challenging environment. Given these factors, we chose to exit the position and reallocate the capital to higher conviction opportunities in the portfolio with clearer visibility into durable growth.

AON

We liquidated our position in Aon during the quarter. Aon continues to execute well operationally and has outperformed peers during a period of softer insurance pricing. The backdrop has become less favorable as the insurance industry entered a softer phase following several years of strong property insurance pricing driven by inflation and elevated catastrophe losses. As pricing has moderated, revenue growth across the brokerage industry has come under pressure, creating a headwind for firms whose revenues are tied to insurance premiums. Although Aon has navigated this environment better than competitors and we continue to view the underlying business as high-quality and resilient, we exited the position and reallocated the funds to a more attractive long-term growth opportunity in Arista Networks.

ARM

Arm Holdings, leading designer and licensor of CPU architectures and related subsystems, was a top contributor to performance again this quarter. The company delivered solid quarterly results, including 20% revenue growth and 12% profit growth, with continued strength in licensing activity and sustained royalty expansion despite a tougher comparison period. Management guidance reinforced confidence in maintaining roughly 20% revenue growth, supported by increasing demand for Arm-based CPUs and expanding adoption across data center and AI workloads, which helped offset expected weakness in handset markets. Confidence was further supported by evidence of strong CPU demand, improving share gains versus x86 architectures, and growing customer traction, including an expanding roster of signed partners and management's confidence in achieving long-term revenue targets. With strong pricing power, highly recurring revenues, and expanding royalty rates as Arm captures more value across the compute stack, we continue to view the company as a high-quality, long-term compounder well-positioned to benefit from the proliferation of AI and power efficient computing. We trimmed the position to a below-average weight due to valuation considerations following the stock's strong performance.

GOOGL

Alphabet was a contributor to performance during the quarter supported by the continued narrative that the company is a well-positioned beneficiary of the AI investment cycle. Its full-stack exposure spans infrastructure, foundational models, developer tools, and scaled consumer applications, providing broad participation in AI adoption. The stock benefited from the company's Q1 report which highlighted robust ongoing demand for the company's AI compute resources. We continue to view Alphabet as a high-quality, long-term compounder. Its leading global platforms, supported by strong network effects, direct user relationships, and scaled infrastructure, underpin durable pricing power and highly recurring revenue streams. The company remains well-positioned to benefit from sustained growth drivers, including the ongoing shift toward digital advertising and cloud computing, while its continued investment in AI and innovation supports its ability to reinforce its competitive position over time. We added to the position and raised the target, maintaining an above-average weight.

NVDA

Nvidia was a top contributor to performance during the quarter. The company reported strong results and introduced a new sales breakdown that highlights demand from the largest cloud companies, with the underlying numbers lining up well with its long-term outlook. Management commentary and investor focus also reflected confidence that demand remains strong despite ongoing debate around AI investment sustainability. Additionally, management reiterated sustained expectations for multi-trillion-dollar AI spending over the long term, growing contributions from both hyperscaler and non-hyperscaler customers and increasing visibility into the company's networking and emerging CPU opportunities. Networking sales now run at about $60 billion annualized, and the new Vera processor is expected to add $20 billion. Capital returns also stepped up, with a commitment to return at least half of cash to shareholders and about $25 billion of buybacks planned each quarter. While competition and AI spending debates may contribute to periodic volatility, we believe the scale of the opportunity and Nvidia's technological advantages position the company favorably over the long term. We raised the target and added to the position during the quarter, maintaining an above-average weight.

NFLX

Netflix was a detractor from returns during the quarter after the stock came under pressure despite reporting solid first quarter results in April. Revenue grew 16% year-over-year, or 14% excluding FX, and operating income rose 18%, supported by strong growth in APAC and Latin America. Second quarter revenue guidance came in roughly 1% below expectations and EBIT guidance was 5% light due to content amortization timing. Management maintained full-year guidance of 11% to 13% revenue growth (excluding FX) and approximately 20% profit growth rather than raising it, which disappointed some investors who had anticipated a lift following the recent price hike and the removal of the Warner Bros. Discovery deal overhang. With the Warner Bros. Discovery acquisition now behind it, management can refocus on the core business and deploy excess free cash flow toward AI investment and buybacks, including a new $25 billion authorization. The company continues to expand its mobile and content initiatives, while evaluating longer-term opportunities in advertising and AI-driven production tools. Over the long term, Netflix benefits from a recurring subscription model with low churn and demonstrated pricing power, supported by a broad and growing content library and meaningful global growth opportunity. We maintained an average weight position during the quarter.

CRM

Salesforce was a detractor from performance during the quarter as investor sentiment remained cautious following another quarter that merely met its guidance targets. Current remaining performance obligations (cRPO) growth were in line at roughly 9% rather than the historical pattern of beating by about a point, and the forward quarter guide was modest. Management acknowledged continued weakness in Marketing, Commerce, and Tableau (roughly 20% of revenue), partially offset by strength in Sales Cloud, Service Cloud, Slack, and Data Cloud (roughly 75% to 80% of revenue), with Sales and Service Cloud each posting seat growth in the quarter. Additionally, Agentforce annualized recurring revenue reached $1.2 billion, growing 205%. Management reiterated full-year guidance and a second-half reacceleration based on bookings strength and lower attrition, alongside a long-term double-digit organic growth target through CY29 with about 100 basis points of annual margin expansion. Despite concerns around AI-driven competition, we believe Salesforce's integration into customer business processes, large installed base, and wide product set position it well to compete effectively in the Agentic AI era, supporting low-teens earnings growth over the next three years. We maintained a below-average weight position.

MSFT

ECL

YUM

Positions in Microsoft, Waste Management, Netflix, Ecolab, and Yum! Brands were added to on weakness while also adding to our positions in Alphabet, Apple, Nvidia, and ServiceNow given their strong long-term growth prospects. We met with Jon Hixon, Yum! Brands' Chief Sustainability Officer, as well as members of legal and human resources teams to discuss several topics relevant to our investment thesis, including human capital management, geopolitical and reputational risks, corporate governance, and sustainability reporting. A key focus of the engagement was Pizza Hut's ongoing strategic review and the associated human capital implications. Management outlined several retention initiatives designed to support workforce stability during the review process, including broad-based retention bonuses for employees and targeted retention awards for critical leadership and operational roles. While the company had experienced a modest increase in employee turnover, management indicated that attrition remained within expected ranges and did not represent a material operational concern. Subsequent to our engagement, Yum! announced the sale of Pizza Hut.

AMZN

Positions in Arm Holdings, Amazon, Broadcom, and Grainger were trimmed on strength while we trimmed our position in CPKC given headline risk from USMCA negotiations.

AVGO

Positions in Arm Holdings, Amazon, Broadcom, and Grainger were trimmed on strength while we trimmed our position in CPKC given headline risk from USMCA negotiations.

GWW

Positions in Arm Holdings, Amazon, Broadcom, and Grainger were trimmed on strength while we trimmed our position in CPKC given headline risk from USMCA negotiations.

NOW

Positions in Microsoft, Waste Management, Netflix, Ecolab, and Yum! Brands were added to on weakness while also adding to our positions in Alphabet, Apple, Nvidia, and ServiceNow given their strong long-term growth prospects. As part of our ongoing dialogue with ServiceNow, we met with President and Chief Legal Officer Hossein Nowbar and members of the company's legal, compensation and, human resources teams. A significant portion of the discussion focused on the company's recent acquisition activity and the importance of maintaining transparency with shareholders regarding strategic decision-making. Management disagreed with our characterization that its acquisition strategy had become more aggressive, describing the recent transactions as an unusual convergence of several deals rather than a fundamental change in approach. We emphasized that, regardless of management's intent, the lack of timely communication surrounding these transactions contributed to investor uncertainty and undermined shareholder confidence. We encouraged the company to provide clearer and more proactive disclosure around significant strategic decisions to help investors develop a better understanding of the rationale and risks associated with future acquisitions.

Positions in Arm Holdings, Amazon, Broadcom, and Grainger were trimmed on strength while we trimmed our position in CPKC given headline risk from USMCA negotiations. We engaged with management of Canadian Pacific Kansas City Limited in advance of the company's annual meeting to discuss its climate strategy and a proposal on climate-related disclosures. A key topic of discussion was the company's decision to defer establishing a Science Based Targets initiative (SBTi)-validated 1.5°C-aligned emissions reduction target. While the ISS Sustainability policy recommended voting against the climate proposal due to the absence of intermediate and long-term emissions targets, management explained that the delay stemmed from the lack of a finalized intensity-based methodology from SBTi appropriate for the freight rail industry, emphasizing that CPKC remains committed to its existing goal of reducing locomotive well-to-wheel emissions intensity by 36.9% by 2030 and continues to work with SBTi as industry-specific frameworks evolve.

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Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 30th June 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

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Investment Themes

AI

Semiconductors

Momentum

Quality

Data Centers

Cloud

Networking

Valuation

AI

Software

Quality

Growth

AI

Earnings

Rates

Dollar

Volatility

AI

Quality

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Current Portfolio as of ( 30th June 2026 )

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SGA – U.S. Large Cap Growth