NCG Large Cap Growth Strategy

Investor Summary

Next Century Growth Investors was founded in November 1998 by Tom Press and has maintained consistent leadership with an experienced team managing the Large Cap Growth Strategy since January 1, 1999. The firm is led by Tom Press (Chairman/Founder), Bob Scott (CEO who joined in 2000), Peter Capouch (President who joined in 2003), and portfolio managers Kaj Doerring (28 years experience) and Tom Dignard. The team has over 100 years combined investment experience working together at NCG, with education from prestigious institutions including Harvard, Yale, and University of Minnesota. The firm is 80% owned by active portfolio manager partners, ensuring independence and alignment of interests. Operations are supported by Kelly McNulty as VP and Chief Compliance Officer with over 30 years of industry experience.

Fund Strategy

Next Century Growth Investors' philosophy has remained consistently focused on investing in high growth companies to create value for clients. The firm seeks to invest in the fastest growing and highest quality companies in America. For the Large Cap Growth Strategy specifically, they seek to generate long-term capital appreciation by investing in the fastest-growing and highest-quality companies in the US large cap growth universe. The firm believes the market inefficiently values high-quality companies with long-term growth opportunities, and that if portfolio companies execute as expected, they can compound stock value faster than the overall market. The investment approach is grounded in the belief that a portfolio consisting of high-quality growth companies, combined with a strong sell discipline, will lead to both compounding of portfolio value and better performance than the unmanaged index over the long-term.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
11.5%	27.78%	14.79%

Executive Summary

Next Century Growth Investors delivered exceptional Q2 2026 performance across all five strategies, with the Large Cap Growth strategy up 27.78% net versus 16.74% for the Russell 1000 Growth Index, driven by concentrated exposure to AI infrastructure, semiconductors, and data center buildout. Technology holdings returned 90-120% in aggregate across smaller cap strategies, with the Philadelphia Semiconductor Index posting its best quarter on record as roughly $700 billion of hyperscaler capex commitments restored investor conviction. Small caps posted their strongest first half since 1991, benefiting from accelerating earnings growth in semiconductors, defense, and reshored manufacturing. Following the sharp rally, the manager trimmed AI-exposed positions after valuations expanded considerably and redeployed capital into health care, industrials, financials, and software at more attractive valuations. The firm maintains high conviction in small cap opportunities where fundamentals are accelerating and relative valuations remain reasonable despite recent outperformance. Key risks include elevated inflation pressures, potential Fed rate hikes, and stretched valuations in mega-cap AI names requiring sustained earnings delivery to justify current multiples.

Core Thesis

Next Century Growth Investors focuses on high-quality growth businesses with durable competitive advantages, strong balance sheets, and long-term earnings power, emphasizing multi-year investment cycles in AI infrastructure, semiconductors, data centers, onshoring, and defense spending, with particular conviction in small cap opportunities where accelerating fundamentals and attractive valuations create a compelling multi-year setup.

Forward Outlook

The investment backdrop remains constructive for high-quality growth investing. The U.S. economy has proven resilient, corporate earnings are on pace to deliver strong growth in 2026, and capital spending tied to AI infrastructure and re-industrialization continues to accelerate. The surge in earnings has compressed forward valuation multiples for many segments, providing a healthier fundamental foundation. Conditions remain especially favorable for continued market broadening in favor of small cap stocks, which still trade at attractive relative valuations despite the rally. The manager expects a more selective environment for large cap growth investors, which suits their concentrated, research-driven approach. They believe environments marked by shifting leadership, dispersion, and rapid capital reallocation tend to reward disciplined, fundamentally driven active managers.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Jul 20 2026	2026 Q2	-	AI, Data centers, Defense Spending, growth, Onshoring, semiconductors, small caps	-	Next Century Growth delivered exceptional Q2 returns led by AI infrastructure, semiconductors, and data centers, with small caps posting their best first half since 1991. The manager trimmed technology winners after sharp valuation expansion and redeployed into health care, industrials, and software. High conviction remains on small cap opportunities where accelerating earnings and reasonable valuations create a multi-year setup despite recent outperformance.
Apr 22 2026	2026 Q1	-	AI, defense, growth, industrials, large cap, small caps, technology	-	NCG's large cap strategy fell 10.16% in Q1 amid geopolitical tensions and mega-cap growth scrutiny. AI infrastructure and defense holdings outperformed while software faced pressure from AI disruption concerns. The manager reduced software exposure and maintains conviction in market broadening favoring high-quality growth businesses with durable competitive advantages over mega-cap concentration.
Jan 21 2026	2025 Q4	AAPL, AMD, GE, GHI, GOOGL, HOOD, KNSL, MDB, MSFT, NFLX, ORCL, PGR, ROKU, SAIA, SPOT	active management, growth, Outperformance, Quality, small caps, technology	-	NCG delivered solid absolute returns but lagged benchmarks as quality factors headwinds persisted through 2025. Low-quality speculative stocks dramatically outperformed their high-quality growth focus. Despite near-term challenges, the firm maintains conviction in their proven investment philosophy and sees improving conditions ahead, particularly for small caps benefiting from Fed cuts and pro-growth policies.
Oct 24 2025	2025 Q3	AAPL, APP, ARM, CRM, CYBR, GEV, HOOD, INSM, ISRG, MDB, NFLX, NOW, NVDA, ORCL, PGR, TEAM, TOST, TYL	AI, growth, infrastructure, Quality, rates, small caps, technology	NVDA AAPL APP MDB ORCL GEV HOOD	NCG's Large Cap Growth strategy underperformed in 3Q25 due to speculative market conditions favoring low-quality stocks over their high-quality growth focus. The firm remains optimistic about AI infrastructure, pro-growth policies, and Fed rate cuts while maintaining disciplined investment approach. Portfolio activity included adding MongoDB, Oracle, and GE Vernova while trimming technology positions.
Aug 7 2025	2025 Q2	AAPL, BROS, CAT, CDNS, CMG, CYBR, MRVL, MSFT, NVDA, SAIA, SNOW, TOST, TTD, UNH	growth, industrials, Infrastructure Spending, small caps, technology, Trade Policy	-	NCG delivered strong Q2 outperformance across most strategies despite initial tariff-related volatility. The firm sees compelling opportunities ahead driven by potential Fed rate cuts, pro-growth infrastructure policies, and historically attractive small cap valuations. They maintain disciplined focus on high-quality growth companies through direct research while positioning for secular growth drivers in industrials and technology.
Mar 31 2025	2025 Q1	AAPL, AMD, AVGO, CRM, CSGP, CVNA, HWM, MRVL, NVDA, PANW, PGR, SNOW, SPOT, SYM, TEAM, TOST, TSLA, V	earnings, growth, large cap, Quality, technology	-	NCG's Large Cap Growth strategy underperformed in Q1 2025 due to technology sector weakness amid policy uncertainty following Trump's inauguration. Despite near-term headwinds from concerns over growth slowdown and inflation, the firm maintains conviction in their high-quality growth approach, seeing attractive valuations and potential catalysts including Fed support and infrastructure spending acceleration.
Dec 31 2023	2023 Q4	AAPL, ADBE, CELH, CRM, DE, DXCM, GOOGL, KNSL, LLY, PEN, TOST, WDAY	growth, healthcare, Quality, small caps, software, technology	KNSL ADBE WDAY	NCG's growth-focused strategy underperformed in 3Q23 as healthcare holdings suffered from GLP-1 concerns while adding quality software names like Adobe and Workday. Despite macro headwinds and recession risks, the team sees reasonable valuations after 2021 declines and maintains conviction in their disciplined approach to owning America's fastest-growing, highest-quality companies for long-term outperformance.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Jul 20 2026

2026 Q2

AI, Data centers, Defense Spending, growth, Onshoring, semiconductors, small caps

Next Century Growth delivered exceptional Q2 returns led by AI infrastructure, semiconductors, and data centers, with small caps posting their best first half since 1991. The manager trimmed technology winners after sharp valuation expansion and redeployed into health care, industrials, and software. High conviction remains on small cap opportunities where accelerating earnings and reasonable valuations create a multi-year setup despite recent outperformance.

Apr 22 2026

2026 Q1

AI, defense, growth, industrials, large cap, small caps, technology

NCG's large cap strategy fell 10.16% in Q1 amid geopolitical tensions and mega-cap growth scrutiny. AI infrastructure and defense holdings outperformed while software faced pressure from AI disruption concerns. The manager reduced software exposure and maintains conviction in market broadening favoring high-quality growth businesses with durable competitive advantages over mega-cap concentration.

Jan 21 2026

2025 Q4

AAPL, AMD, GE, GHI, GOOGL, HOOD, KNSL, MDB, MSFT, NFLX, ORCL, PGR, ROKU, SAIA, SPOT

active management, growth, Outperformance, Quality, small caps, technology

NCG delivered solid absolute returns but lagged benchmarks as quality factors headwinds persisted through 2025. Low-quality speculative stocks dramatically outperformed their high-quality growth focus. Despite near-term challenges, the firm maintains conviction in their proven investment philosophy and sees improving conditions ahead, particularly for small caps benefiting from Fed cuts and pro-growth policies.

Oct 24 2025

2025 Q3

AAPL, APP, ARM, CRM, CYBR, GEV, HOOD, INSM, ISRG, MDB, NFLX, NOW, NVDA, ORCL, PGR, TEAM, TOST, TYL

AI, growth, infrastructure, Quality, rates, small caps, technology

NVDA
AAPL
APP
MDB
ORCL
GEV
HOOD

NCG's Large Cap Growth strategy underperformed in 3Q25 due to speculative market conditions favoring low-quality stocks over their high-quality growth focus. The firm remains optimistic about AI infrastructure, pro-growth policies, and Fed rate cuts while maintaining disciplined investment approach. Portfolio activity included adding MongoDB, Oracle, and GE Vernova while trimming technology positions.

Aug 7 2025

2025 Q2

AAPL, BROS, CAT, CDNS, CMG, CYBR, MRVL, MSFT, NVDA, SAIA, SNOW, TOST, TTD, UNH

growth, industrials, Infrastructure Spending, small caps, technology, Trade Policy

NCG delivered strong Q2 outperformance across most strategies despite initial tariff-related volatility. The firm sees compelling opportunities ahead driven by potential Fed rate cuts, pro-growth infrastructure policies, and historically attractive small cap valuations. They maintain disciplined focus on high-quality growth companies through direct research while positioning for secular growth drivers in industrials and technology.

Mar 31 2025

2025 Q1

AAPL, AMD, AVGO, CRM, CSGP, CVNA, HWM, MRVL, NVDA, PANW, PGR, SNOW, SPOT, SYM, TEAM, TOST, TSLA, V

earnings, growth, large cap, Quality, technology

NCG's Large Cap Growth strategy underperformed in Q1 2025 due to technology sector weakness amid policy uncertainty following Trump's inauguration. Despite near-term headwinds from concerns over growth slowdown and inflation, the firm maintains conviction in their high-quality growth approach, seeing attractive valuations and potential catalysts including Fed support and infrastructure spending acceleration.

Dec 31 2023

2023 Q4

AAPL, ADBE, CELH, CRM, DE, DXCM, GOOGL, KNSL, LLY, PEN, TOST, WDAY

growth, healthcare, Quality, small caps, software, technology

KNSL
ADBE
WDAY

NCG's growth-focused strategy underperformed in 3Q23 as healthcare holdings suffered from GLP-1 concerns while adding quality software names like Adobe and Workday. Despite macro headwinds and recession risks, the team sees reasonable valuations after 2021 declines and maintains conviction in their disciplined approach to owning America's fastest-growing, highest-quality companies for long-term outperformance.

QUARTER	THEMES	TAGS
2026 Q2	AI AI infrastructure spending drove exceptional performance in technology holdings, with roughly $700 billion of hyperscaler capex committed for the year. Semiconductors, networking, power and data-center-related equities powered the rally. Following strong April and May performance, the manager trimmed exposure to AI-exposed businesses after valuations expanded considerably, while maintaining belief in multi-year growth drivers.	Semiconductors Data Centers Hyperscaler Infrastructure Capex
	Semiconductor Cycle The Philadelphia Semiconductor Index posted its best quarter on record, with memory names seeing historic moves. Semiconductor and semicap equipment holdings were the largest contributors to performance, returning between 90% and 120% in aggregate across smaller cap strategies. The manager added positions in MRVL and ASML while trimming after the sharp rally.	Memory Semi Equipment Foundries Chip Designers
	Defense Spending Defense-related holdings contributed meaningfully to industrials performance, driven by continued strength in defense budgets. Aerospace and defense exposure was a key driver across the smaller cap complex and in the large cap strategy's industrials overweight.	Aerospace Defense Government
	Onshoring Reshoring-linked capital spending drove strong performance in industrials holdings tied to specialized manufacturing. The One Big Beautiful Bill Act's capital-spending incentives continue to support the domestic industrial, technology, and infrastructure economy. This theme is described as a multi-year investment cycle.	Manufacturing Industrial Policy Capital Spending Infrastructure
	Data Centers Holdings tied to data-center site development and electrical infrastructure performed exceptionally well, driven by continued strength in AI-related site work. Data-center buildout is identified as a key theme powering small cap earnings acceleration alongside semiconductors and power infrastructure.	Infrastructure Power Equipment Construction AI
	Small Caps Small cap stocks posted their strongest first half since 1991, with the Russell 2000 Growth up 25.7% and Russell Microcap Growth up nearly 29%. Small cap earnings growth turned positive in 2025 and is now accelerating. The manager believes the combination of accelerating fundamentals, improving breadth, and reasonable valuations creates a compelling multi-year setup despite the recent rally.	Earnings Valuations Breadth Growth
2026 Q1	AI AI infrastructure investments including semiconductors, optical components, power buildout and site development performed well as spending on computing capacity, networking, and data-center build-outs remained robust. However, traditional SaaS software companies faced pressure from concerns that AI native companies could significantly alter their growth trajectory.	Infrastructure Semiconductors Data Centers Software Computing
	Defense Spending Aerospace and defense holdings contributed positively to performance, supported by elevated global defense spending and growing order backlogs. The portfolio maintains overweight exposure to companies with secular growth drivers in aerospace.	Aerospace Defense Order Backlogs Global Spending
	Small Caps Small cap stocks demonstrated notable resilience and outperformed large-cap benchmarks by a wide margin. This reflects market broadening as investors look beyond mega-cap stocks toward more domestically oriented companies with improving earnings momentum and attractive valuations. Small cap earnings growth turned positive in 2025 and is expected to stay positive and potentially accelerate in 2026.	Outperformance Valuations Earnings Growth Market Broadening
2025 Q4	Value Fund focuses on buying shares in decent operating businesses at significant discounts to intrinsic value. European value stocks had their largest outperformance versus growth stocks in 30 years, beating them by 19 percentage points. Manager believes value will continue to outperform growth during the remainder of this decade.	Value Investing Discount Intrinsic Value P/E Ratios Deep Value
	Insurance Vienna Insurance Group was the best performing stock, generating 158% return in USD. NN Group generated 85% return despite trading at discount to book value. Both companies demonstrate strong capital allocation and market leadership positions in their respective regions.	Life Insurance P&C Insurance Central Europe Capital Allocation Book Value
	Shipping Fund exited car carrier operating companies after generating exceptional 110% IRR over five years. Maintains exposure through Wilh. Wilhelmsen Holding at 48% discount to NAV. Expects charter rates and vessel values to decline as new supply enters market.	Car Carriers Shipping Maritime Charter Rates Vessel Values
	Biotechnology Added RTW Biotech as new holding, believing gene splicing and editing are the next big thing. Fund trades at 16% discount to NAV despite 40% NAV growth. M&A activity has picked up substantially as Big Pharma faces patent cliff.	Gene Editing Biotech M&A Patent Cliff China Innovation
	Private Equity Sold Altamir following tender offer, generating 16.4% IRR over 13 years. Deployed proceeds into other listed private equity funds trading at circa 30% discounts to NAV. These funds compound NAV at low teens rate and are considered top quartile.	Listed Private Equity NAV Discount Secondary Market Top Quartile Capital Deployment
	Fertilizers Yara International increased EPS from $1.75 to around $4.25 estimated for 2025. Manager expects Yara to surpass analysts' earnings expectations due to tight new supply and Carbon Border Adjustment Mechanism in EU. Well-managed business owned for over 20 years.	Nitrogen CBAM Supply Constraints EU Regulation Earnings Growth
2025 Q3	AI Artificial intelligence presents great promise for enhancing business models and improving productivity long-term. In the near-term, the infrastructure needed to support AI buildout is spurring significant investment and capital expenditures, driving new growth opportunities for innovative companies across technology, industrials, and energy sectors.	Infrastructure Productivity Technology Investment Growth
	Infrastructure Spending The new administration has implemented pro-growth policies including infrastructure spending, manufacturing re-shoring, critical mineral and pharmaceutical production, and defense spending. These policies are expected to support growth across many sectors of the domestic economy.	Manufacturing Defense Domestic Policy Growth
	Small Caps Small cap growth stocks have started to play catch-up relative to large cap in 3Q, but there is still a long way to go. The rolling 10-year annualized return by small vs large stands at -3.4% per year and is in the 6th percentile going back to 1926, with valuations in the 10th percentile historically.	Valuation Performance Relative Historical Opportunity
	Rates The Federal Reserve has begun cutting rates after nearly a year long pause and has indicated more cuts are coming. This should be good for the markets broadly, with small caps the prime beneficiary in past rate-cutting cycles.	Fed Monetary Cycles Beneficiary Policy
2025 Q2	Trade Policy The quarter was marked by President Trump's Liberation Day tariff announcement on April 2nd, which created considerable concern for global markets due to the breadth of countries included, level of tariff rates imposed, and short implementation timeframe. However, the administration later put in place a 90-day pause on tariff implementation and started talking about numerous ongoing trade deal negotiations, causing markets to reverse course.	Tariffs Trade Policy Negotiations
	Infrastructure Spending Strong forces driving increased infrastructure spending in the US have been gaining momentum for the past couple years and remain intact. The new administration is working to accelerate this trend and NCG is finding companies which are direct beneficiaries, including the recent passage of the OBBB.	Infrastructure Spending OBBB Beneficiaries
	Small Caps The rolling 10-year annualized return by small vs large stands at -7.3% and is the worst ever going back to 1926. The valuation of the small cap sector relative to large caps is in the 5th percentile historically, suggesting significant opportunity exists despite recent underperformance.	Small Cap Valuation Relative Performance Opportunity
2025 Q1	Growth NCG emphasizes investing in what they believe are the fastest growing and highest quality companies in America. They maintain focus on fundamental growth drivers of each holding despite challenging market conditions. The firm expects strong earnings growth in 2025 for small, mid and large cap companies, which would be a continuation of strong growth in large cap.	Earnings Quality Fundamentals Revenue Profits
	Technology Technology sector was a primary detractor from performance in Q1. The portfolio is slightly underweight technology but maintains significant exposure as growth fundamentals remain strong in many large index positions. NCG added five new technology positions including Snowflake, Salesforce, Marvell Technology, Broadcom, and Atlassian while selling Palo Alto Networks, AMD, and Toast.	Software Semiconductors Cloud Enterprise Software Hardware
2023 Q4	GLP1 Healthcare holdings underperformed due to investor perception that weight loss benefits from GLP-1 drug class will improve overall health, reducing prevalence of certain disease states and medical interventions. Long-term impact on business fundamentals remains unclear.	Weight Loss Healthcare Medical Devices Pharmaceuticals Diabetes
	AI Adobe has quickly adopted AI which should enhance their product offerings as they continue to deliver double digit revenue growth approaching $20B in annual revenue.	Software Cloud Enterprise Software Technology Innovation

QUARTER

THEMES

AI

AI infrastructure spending drove exceptional performance in technology holdings, with roughly $700 billion of hyperscaler capex committed for the year. Semiconductors, networking, power and data-center-related equities powered the rally. Following strong April and May performance, the manager trimmed exposure to AI-exposed businesses after valuations expanded considerably, while maintaining belief in multi-year growth drivers.

Semiconductors Data Centers Hyperscaler Infrastructure Capex

Semiconductor Cycle

The Philadelphia Semiconductor Index posted its best quarter on record, with memory names seeing historic moves. Semiconductor and semicap equipment holdings were the largest contributors to performance, returning between 90% and 120% in aggregate across smaller cap strategies. The manager added positions in MRVL and ASML while trimming after the sharp rally.

Memory Semi Equipment Foundries Chip Designers

Defense Spending

Defense-related holdings contributed meaningfully to industrials performance, driven by continued strength in defense budgets. Aerospace and defense exposure was a key driver across the smaller cap complex and in the large cap strategy's industrials overweight.

Aerospace Defense Government

Onshoring

Reshoring-linked capital spending drove strong performance in industrials holdings tied to specialized manufacturing. The One Big Beautiful Bill Act's capital-spending incentives continue to support the domestic industrial, technology, and infrastructure economy. This theme is described as a multi-year investment cycle.

Manufacturing Industrial Policy Capital Spending Infrastructure

Data Centers

Holdings tied to data-center site development and electrical infrastructure performed exceptionally well, driven by continued strength in AI-related site work. Data-center buildout is identified as a key theme powering small cap earnings acceleration alongside semiconductors and power infrastructure.

Infrastructure Power Equipment Construction AI

Small Caps

Small cap stocks posted their strongest first half since 1991, with the Russell 2000 Growth up 25.7% and Russell Microcap Growth up nearly 29%. Small cap earnings growth turned positive in 2025 and is now accelerating. The manager believes the combination of accelerating fundamentals, improving breadth, and reasonable valuations creates a compelling multi-year setup despite the recent rally.

Earnings Valuations Breadth Growth

2026 Q1

AI

AI infrastructure investments including semiconductors, optical components, power buildout and site development performed well as spending on computing capacity, networking, and data-center build-outs remained robust. However, traditional SaaS software companies faced pressure from concerns that AI native companies could significantly alter their growth trajectory.

Infrastructure Semiconductors Data Centers Software Computing

Defense Spending

Aerospace and defense holdings contributed positively to performance, supported by elevated global defense spending and growing order backlogs. The portfolio maintains overweight exposure to companies with secular growth drivers in aerospace.

Aerospace Defense Order Backlogs Global Spending

Small Caps

Small cap stocks demonstrated notable resilience and outperformed large-cap benchmarks by a wide margin. This reflects market broadening as investors look beyond mega-cap stocks toward more domestically oriented companies with improving earnings momentum and attractive valuations. Small cap earnings growth turned positive in 2025 and is expected to stay positive and potentially accelerate in 2026.

Outperformance Valuations Earnings Growth Market Broadening

2025 Q4

Value

Fund focuses on buying shares in decent operating businesses at significant discounts to intrinsic value. European value stocks had their largest outperformance versus growth stocks in 30 years, beating them by 19 percentage points. Manager believes value will continue to outperform growth during the remainder of this decade.

Value Investing Discount Intrinsic Value P/E Ratios Deep Value

Insurance

Vienna Insurance Group was the best performing stock, generating 158% return in USD. NN Group generated 85% return despite trading at discount to book value. Both companies demonstrate strong capital allocation and market leadership positions in their respective regions.

Life Insurance P&C Insurance Central Europe Capital Allocation Book Value

Shipping

Fund exited car carrier operating companies after generating exceptional 110% IRR over five years. Maintains exposure through Wilh. Wilhelmsen Holding at 48% discount to NAV. Expects charter rates and vessel values to decline as new supply enters market.

Car Carriers Shipping Maritime Charter Rates Vessel Values

Biotechnology

Added RTW Biotech as new holding, believing gene splicing and editing are the next big thing. Fund trades at 16% discount to NAV despite 40% NAV growth. M&A activity has picked up substantially as Big Pharma faces patent cliff.

Gene Editing Biotech M&A Patent Cliff China Innovation

Private Equity

Sold Altamir following tender offer, generating 16.4% IRR over 13 years. Deployed proceeds into other listed private equity funds trading at circa 30% discounts to NAV. These funds compound NAV at low teens rate and are considered top quartile.

Listed Private Equity NAV Discount Secondary Market Top Quartile Capital Deployment

Fertilizers

Yara International increased EPS from $1.75 to around $4.25 estimated for 2025. Manager expects Yara to surpass analysts' earnings expectations due to tight new supply and Carbon Border Adjustment Mechanism in EU. Well-managed business owned for over 20 years.

Nitrogen CBAM Supply Constraints EU Regulation Earnings Growth

2025 Q3

AI

Artificial intelligence presents great promise for enhancing business models and improving productivity long-term. In the near-term, the infrastructure needed to support AI buildout is spurring significant investment and capital expenditures, driving new growth opportunities for innovative companies across technology, industrials, and energy sectors.

Infrastructure Productivity Technology Investment Growth

Infrastructure Spending

The new administration has implemented pro-growth policies including infrastructure spending, manufacturing re-shoring, critical mineral and pharmaceutical production, and defense spending. These policies are expected to support growth across many sectors of the domestic economy.

Manufacturing Defense Domestic Policy Growth

Small Caps

Small cap growth stocks have started to play catch-up relative to large cap in 3Q, but there is still a long way to go. The rolling 10-year annualized return by small vs large stands at -3.4% per year and is in the 6th percentile going back to 1926, with valuations in the 10th percentile historically.

Valuation Performance Relative Historical Opportunity

Rates

The Federal Reserve has begun cutting rates after nearly a year long pause and has indicated more cuts are coming. This should be good for the markets broadly, with small caps the prime beneficiary in past rate-cutting cycles.

Fed Monetary Cycles Beneficiary Policy

2025 Q2

Trade Policy

The quarter was marked by President Trump's Liberation Day tariff announcement on April 2nd, which created considerable concern for global markets due to the breadth of countries included, level of tariff rates imposed, and short implementation timeframe. However, the administration later put in place a 90-day pause on tariff implementation and started talking about numerous ongoing trade deal negotiations, causing markets to reverse course.

Tariffs Trade Policy Negotiations

Infrastructure Spending

Strong forces driving increased infrastructure spending in the US have been gaining momentum for the past couple years and remain intact. The new administration is working to accelerate this trend and NCG is finding companies which are direct beneficiaries, including the recent passage of the OBBB.

Infrastructure Spending OBBB Beneficiaries

Small Caps

The rolling 10-year annualized return by small vs large stands at -7.3% and is the worst ever going back to 1926. The valuation of the small cap sector relative to large caps is in the 5th percentile historically, suggesting significant opportunity exists despite recent underperformance.

Small Cap Valuation Relative Performance Opportunity

2025 Q1

Growth

NCG emphasizes investing in what they believe are the fastest growing and highest quality companies in America. They maintain focus on fundamental growth drivers of each holding despite challenging market conditions. The firm expects strong earnings growth in 2025 for small, mid and large cap companies, which would be a continuation of strong growth in large cap.

Earnings Quality Fundamentals Revenue Profits

Technology

Technology sector was a primary detractor from performance in Q1. The portfolio is slightly underweight technology but maintains significant exposure as growth fundamentals remain strong in many large index positions. NCG added five new technology positions including Snowflake, Salesforce, Marvell Technology, Broadcom, and Atlassian while selling Palo Alto Networks, AMD, and Toast.

Software Semiconductors Cloud Enterprise Software Hardware

2023 Q4

GLP1

Healthcare holdings underperformed due to investor perception that weight loss benefits from GLP-1 drug class will improve overall health, reducing prevalence of certain disease states and medical interventions. Long-term impact on business fundamentals remains unclear.

Weight Loss Healthcare Medical Devices Pharmaceuticals Diabetes

AI

Adobe has quickly adopted AI which should enhance their product offerings as they continue to deliver double digit revenue growth approaching $20B in annual revenue.

Software Cloud Enterprise Software Technology Innovation

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Sep 30, 2023	Fund Letters	NCG Large Cap Growth Strategy	KNSL	Kinsale Capital Group Inc	Financials	Property & Casualty Insurance	Bull	NYSE	claims management, Excess & Surplus, premium growth, Property & Casualty, specialty insurance, technology platform, underwriting	Login
Sep 30, 2023	Fund Letters	NCG Large Cap Growth Strategy	ADBE	Adobe Inc	Information Technology	Application Software	Bull	NASDAQ	AI integration, Cloud software, Creative Cloud, digital media, Document Cloud, Experience Cloud, SaaS, subscription model	Login
Sep 30, 2023	Fund Letters	NCG Large Cap Growth Strategy	WDAY	Workday Inc	Information Technology	Application Software	Bull	NASDAQ	cloud migration, Cloud software, Enterprise software, financial management, Fortune 500, HCM, Human capital management, SaaS	Login
Oct 24, 2025	Fund Letters	Tom Press	NVDA	NVIDIA Corporation	Information Technology	Semiconductors	Bull	NASDAQ	AI, Computing, data centers, FCF, GPUs, hyperscalers, innovation, Margins, semiconductors, Software	Login
Oct 24, 2025	Fund Letters	Tom Press	AAPL	Apple Inc.	Information Technology	Technology Hardware, Storage & Peripherals	Bull	NASDAQ	buybacks, cashflow, Consumer tech, Ecosystem, growth, Hardware, innovation, Margins, recurring revenue, services	Login
Oct 24, 2025	Fund Letters	Tom Press	APP	AppLovin Corporation	Communication Services	Interactive Media & Services	Bull	NASDAQ	adtech, advertising, AI, Data, growth, Margins, Mobile, monetization, Software, valuation	Login
Oct 24, 2025	Fund Letters	Tom Press	MDB	MongoDB Inc.	Information Technology	Application Software	Bull	NASDAQ	cloud, Databases, Developers, FCF, growth, infrastructure, recurring revenue, Retention, SaaS, Software	Login
Oct 24, 2025	Fund Letters	Tom Press	ORCL	Oracle Corporation	Information Technology	System Software	Bull	NYSE	AI, backlog, buybacks, cloud, enterprise, growth, infrastructure, Margins, Partnerships, Software	Login
Oct 24, 2025	Fund Letters	Tom Press	GEV	GE Vernova	Industrials	Electrical Equipment	Bull	NYSE	AI, backlog, Decarbonization, Electrification, energy, Grid, growth, infrastructure, Margins, renewables	Login
Oct 24, 2025	Fund Letters	Tom Press	HOOD	Robinhood Markets Inc.	Financials	Capital Markets	Bull	NASDAQ	Crypto, Engagement, expansion, financials, Fintech, growth, Interest income, platform, profitability, Trading	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Sep 30, 2023

Fund Letters

NCG Large Cap Growth Strategy

KNSL

Kinsale Capital Group Inc

Financials

Property & Casualty Insurance

Bull

NYSE

claims management, Excess & Surplus, premium growth, Property & Casualty, specialty insurance, technology platform, underwriting

Sep 30, 2023

Fund Letters

NCG Large Cap Growth Strategy

ADBE

Adobe Inc

Information Technology

Application Software

Bull

NASDAQ

AI integration, Cloud software, Creative Cloud, digital media, Document Cloud, Experience Cloud, SaaS, subscription model

Sep 30, 2023

Fund Letters

NCG Large Cap Growth Strategy

WDAY

Workday Inc

Information Technology

Application Software

Bull

NASDAQ

cloud migration, Cloud software, Enterprise software, financial management, Fortune 500, HCM, Human capital management, SaaS

Oct 24, 2025

Fund Letters

Tom Press

NVDA

NVIDIA Corporation

Information Technology

Semiconductors

Bull

NASDAQ

AI, Computing, data centers, FCF, GPUs, hyperscalers, innovation, Margins, semiconductors, Software

Oct 24, 2025

Fund Letters

Tom Press

AAPL

Apple Inc.

Information Technology

Technology Hardware, Storage & Peripherals

Bull

NASDAQ

buybacks, cashflow, Consumer tech, Ecosystem, growth, Hardware, innovation, Margins, recurring revenue, services

Oct 24, 2025

Fund Letters

Tom Press

APP

AppLovin Corporation

Communication Services

Interactive Media & Services

Bull

NASDAQ

adtech, advertising, AI, Data, growth, Margins, Mobile, monetization, Software, valuation

Oct 24, 2025

Fund Letters

Tom Press

MDB

MongoDB Inc.

Information Technology

Application Software

Bull

NASDAQ

cloud, Databases, Developers, FCF, growth, infrastructure, recurring revenue, Retention, SaaS, Software

Oct 24, 2025

Fund Letters

Tom Press

ORCL

Oracle Corporation

Information Technology

System Software

Bull

NYSE

AI, backlog, buybacks, cloud, enterprise, growth, infrastructure, Margins, Partnerships, Software

Oct 24, 2025

Fund Letters

Tom Press

GEV

GE Vernova

Industrials

Electrical Equipment

Bull

NYSE

AI, backlog, Decarbonization, Electrification, energy, Grid, growth, infrastructure, Margins, renewables

Oct 24, 2025

Fund Letters

Tom Press

HOOD

Robinhood Markets Inc.

Financials

Capital Markets

Bull

NASDAQ

Crypto, Engagement, expansion, financials, Fintech, growth, Interest income, platform, profitability, Trading

TICKER	COMMENTARY
No ticker commentary found.

TICKER

COMMENTARY

No ticker commentary found.

Ticker	Put/Call	Amount Bought	Shares Bought	% Change	Weight %
No Recent Buys Data

Ticker

Put/Call

Amount Bought

Shares Bought

% Change

Weight %

No Recent Buys Data

Ticker	Put/Call	Amount Sold	Shares Sold	% Change	Weight %	Status
No Recent Sells Data

Ticker

Put/Call

Amount Sold

Shares Sold

% Change

Weight %

Status

No Recent Sells Data

Industry	Prev Quarter %	Current Quarter %	Change
No industry data available

Industry

Prev Quarter %

Current Quarter %

Change

No industry data available

Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 30th June 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

AI

Semiconductor Cycle

Defense Spending

Onshoring

Data Centers

Small Caps

AI

Defense Spending

Small Caps

Value

Insurance

Shipping

Biotechnology

Private Equity

Fertilizers

AI

Infrastructure Spending

Small Caps

Rates

Trade Policy

Infrastructure Spending

Small Caps

Growth

Technology

GLP1

AI

Investor Pitches

Current Portfolio as of ( 30th June 2026 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

Tom Press Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

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NCG Large Cap Growth Strategy