Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 12.4% | -5.4% | 15.5% |
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 15.5% | 24.3% | 52.0% | -49.1% | 4.9% | 71.4% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 12.4% | -5.4% | 15.5% |
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 15.5% | 24.3% | 52.0% | -49.1% | 4.9% | 71.4% |
Sands Capital Select Growth delivered -5.4% in Q4 2025 and +15.5% for the full year, underperforming benchmarks due to multiple compression despite strong earnings growth. The firm maintained meaningful AI exposure while navigating market volatility driven by infrastructure spending scrutiny and Federal Reserve policy shifts. Portfolio changes increased exposure to AI semiconductors and digital advertising while reducing application software holdings. The strategy focuses on six key themes: AI infrastructure with demand extending through 2027, defense technology entering structural growth, robotics advancing through AI compute improvements, energy transition driven by data center power demands, cybersecurity becoming core infrastructure, and space commercialization scaling rapidly. Despite near-term underperformance, the firm remains confident in portfolio positioning across these transformational themes. Management emphasizes discipline over momentum, protecting balance sheet strength and earnings durability rather than chasing fragile market leadership. The portfolio trades at historically attractive relative valuations, positioning for long-term value creation as innovation adoption broadens beyond current narrow market focus.
Sands Capital maintains concentrated exposure to businesses creating the future through disruptive innovation, focusing on AI infrastructure, defense technology, robotics, energy transition, cybersecurity, and space while avoiding bubble-like excesses and maintaining valuation discipline.
The firm expects continued AI infrastructure buildout through 2027 with opportunities emerging as adoption shifts from enablers to users. Portfolio positioned to benefit from multi-year secular growth themes while maintaining discipline on business quality and valuation. Market's narrow focus on AI infrastructure may extend opportunities for long-term value creation across diversifying themes.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 22 2026 | 2025 Q4 | AMZN, APP, AVGO, CVNA, DASH, GOOGL, ICE, META, MSFT, NFLX, NU, NVDA, RARE, RBLX, SE, SHOP.TO, SPOT, SQ, TSM, V | AI, defense, energy, growth, infrastructure, Robotics, Space, technology |
GOOGL CVNA TSM AMZN AVGO RBLX SE NFLX SPOT MSFT NOW TEAM ORCL AJG VG DXCM CRS PWR |
AI continues to reshape business models and drive market leadership, with infrastructure spending extending into 2027. The firm maintains meaningful exposure to AI enablers while… |
| Oct 20 2025 | 2025 Q3 | AAP, AVGO, DXCM, GOOG, ICE, NFLX, NOW, NVDA, ORCL, RBLX, TEAM, TSM | Artificial Intelligence, Cloud infrastructure, E-Commerce, semiconductors, software | - | AI-driven capital spending and infrastructure buildouts dominated the portfolios focus, with holdings in NVIDIA, Broadcom, and Oracle leading performance. Managers increased exposure to cloud and… |
| Jul 21 2025 | 2025 Q2 | AJG, AVGO, CVNA, NFLX, NVDA, RARE, RBLX, SHOP, TEAM, UBER, V | AI, growth, innovation, Platforms | - | - |
| Mar 31 2025 | 2025 Q1 | AMZN, APP, APPL, ASML, AVGO, DDOG, ENTG, NET, NOW, NVDA, RBLX, SE, SNOW, SPOT, TSM, UBER | - | - | - |
| Dec 31 2024 | 2024 Q4 | 300750 CH, APP, AXON, DXCM, EW, FND, GRAB, LRCX, NFLX, NOW, NU, OKTA, RBLX, SSFN, YMM | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
CybersecurityDemand for security increased following the recent NPM supply chain attack. JFrog's security add-on which secures open-source packages before organizations onboard them has seen significant pipeline growth, highlighting the critical need for software supply chain security. |
Cybersecurity Software Security Enterprise Technology | |
DefenseDefense positioning includes exposure to missiles, air defense and space through companies like Lockheed Martin, supported by large order backlogs providing strong long-term visibility amid heightened geopolitical tensions. |
Military Aerospace Geopolitical Security Infrastructure | |
Energy TransitionEnergy transition themes are reflected through infrastructure investments and companies positioned for the global push toward renewable energy, including exposure to energy services and LNG infrastructure where long-term dynamics look positive. |
Renewables Infrastructure Clean Energy Sustainability Climate | |
RoboticsAdvances in AI compute power are pushing robotics forward with near-term pull in logistics and warehouse environments. Focus on companies that make robots reliable, safe, and economically compelling rather than headline makers. |
Automation Logistics Warehouse Industrial Manufacturing | |
SpaceSpaceX is generating significant value with rapid expansion of Starlink broadband service, deploying vast satellite constellation with substantial user growth. The company has established itself as leading launch provider with reusable technology and is making tremendous progress on Starship rocket. SpaceX represents the fund's largest position at 19.2% of net assets. |
Satellites Launch Starlink Starship Reusable | |
| 2025 Q3 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
ConsumerThe consumer segment includes DJL Petfoods (pet food ingredients distributor) and TSDC Wholesale (food and grocery wholesale). DJL exemplifies RDCP 2.0 characteristics as an asset-light but infrastructure-critical business with long-standing customer relationships, exceptional retention rates, and exposure to growing pet ownership and premiumisation trends. These businesses benefit from structural advantages and recurring revenue streams. |
Pet Care Food Distribution Consumer Staples Wholesale Distribution | |
Technology |
||
| 2025 Q2 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
Innovation |
||
Platforms |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 22, 2026 | Fund Letters | Frank M. Sands | MSFT | Microsoft Corp. | Information Technology | Software | Bull | NASDAQ | AI, Bottlenecks, Capacity, CapEx, cloud, enterprise, monetization | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | NOW | ServiceNow Inc. | Information Technology | Software | Bull | New York Stock Exchange | Automation, Competition, disruption, Sentiment, Software, valuation, Workflow | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | TEAM | Atlassian Corp. | Information Technology | Software | Bull | NASDAQ | Collaboration, Developers, disruption, migration, Pricing, Sentiment, Software | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | ORCL | Oracle Corp. | Information Technology | Software | Bear | New York Stock Exchange | Balance_Sheet, CapEx, cloud, Competition, growth, leverage, Partnerships | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | AJG | Arthur J. Gallagher & Co. | Financials | Insurance Brokers | Neutral | New York Stock Exchange | acquisition, Brokerage, compounding, diversification, inflation, Insurance, Pricing_Cycle | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | VG | Venture Global Inc. | Energy | LNG Infrastructure | Neutral | New York Stock Exchange | Commissioning, Execution, Exports, Governance, infrastructure, litigation, LNG | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | DXCM | DexCom Inc. | Health Care | Medical Devices | Bear | NASDAQ | Adoption, Cgm, Competition, Diabetes, Reimbursement, reliability, valuation | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | GOOGL | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | advertising, AI, cloud, inference, monetization, scale, Search | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | CRS | Carpenter Technology Corp. | Industrials | Aerospace & Defense | Bull | New York Stock Exchange | Aerospace, Alloys, Capacity, Certification, duopoly, Pricing_Power, Turbines | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | CVNA | Carvana Co. | Consumer Discretionary | Specialty Retail | Bull | New York Stock Exchange | Credit, ecommerce, Inventory, Logistics, Margins, Refinancing, scale | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | PWR | Quanta Services Inc. | Industrials | Construction & Engineering | Bull | New York Stock Exchange | backlog, Electrification, Energy_Transition, Grid, infrastructure, Labor, utilities | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | TSM | Taiwan Semiconductor Manufacturing Co. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | New York Stock Exchange | AI, Capacity, Foundry, Geopolitics, Pricing, semiconductors, Yields | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | AMZN | Amazon.com Inc. | Consumer Discretionary | Broadline Retail | Bull | NASDAQ | advertising, CapEx, cloud, efficiency, Logistics, Margins, scale | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | AVGO | Broadcom Inc. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | accelerators, AI, Cyclicality, Demand, hyperscalers, Margins, Networking | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | RBLX | Roblox Corp. | Communication Services | Entertainment | Bull | New York Stock Exchange | CapEx, Creators, Engagement, Gaming, monetization, platform, Regulation | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | SE | Sea Ltd. | Consumer Discretionary | Broadline Retail | Bull | New York Stock Exchange | Competition, ecommerce, Engagement, Fintech, Logistics, profitability, Reinvestment | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | NFLX | Netflix Inc. | Communication Services | Entertainment | Bull | NASDAQ | acquisition, antitrust, Engagement, Ip, leverage, Pricing, Streaming | Login |
| Jan 22, 2026 | Fund Letters | Frank M. Sands | SPOT | Spotify Technology SA | Communication Services | Entertainment | Bull | New York Stock Exchange | AI, Audio, Engagement, Margins, Pricing, royalties, Subscriptions | Login |
| TICKER | COMMENTARY |
|---|---|
| AMZN | We added to our holdings in Amazon.com Inc. |
| APP | AppLovin provides tools that help mobile app developers, particularly mobile game developers, market and monetize their products. We exited AppLovin after significant price appreciation. |
| AVGO | Broadcom, a leading semiconductor company and long-term holding, continued to execute well amid strong demand for custom silicon supporting AI workloads. |
| CVNA | Carvana is one of the largest used car retailers in the US and operates a national e-commerce platform that provides broader selection, lower costs and a more convenient customer experience than traditional dealerships. We view the company as a differentiated, vertically integrated operator with strong advantages in sourcing, logistics, fulfillment and financing that create meaningful barriers to entry. With a small share of a large market, we believe Carvana has a long runway for growth as it scales nationally and captures efficiencies from its acquisition of ADESA's US physical auction business, which adds a national network of wholesale vehicle auction facilities and supports improved unit economics. |
| DASH | DoorDash Inc. operates a commerce platform that connects merchants, consumers, and independent contractors. reported better-than-expected quarterly results. However, management announced a significant increase in planned investments for 2026, which led to a -17% decline in its share price. |
| GOOGL | I'm willing to go bankrupt rather than lose this race. Larry Page, co-founder of Google |
| ICE | Intercontinental Exchange (ICE) is a long-term holding and remains a top 10 position in the Fund. ICE's share price has been under pressure, largely due to AI-related concerns. The share price has already recovered 15% from recent lows. |
| META | Meta was cited as a larger position that contributed little despite what I thought was positive operating progress, representing opportunity cost in the portfolio. |
| MSFT | OpenAI's well-documented 'circular' funding with its business partners (NVIDIA, Microsoft, among others) is additional cause for concern. |
| NFLX | Netflix has built a durable economic moat around its vertically-integrated, globally-scaled streaming business. As the first company to establish a global subscription media platform within the $500 billion TV market, Netflix is now reaping the benefits of its early leadership. With more than 300 million members, Netflix enjoys the lowest content cost per subscriber in the industry. |
| NU | Since our mid-year update, Nubank's shares increased 37%, bringing full-year performance to +63%. This performance has been driven primarily by fundamentals, with earnings growing approximately 42% over the same period. Brazil remains a powerful profit engine, with high customer engagement, improving risk-adjusted returns, and expanding penetration across consumer and SME banking. Mexico continues to emerge as the next major growth vector: customer penetration has reached ~14% of the population. |
| NVDA | Nvidia sits at the top of the S&P 500 as the designer in the AI ecosystem. |
| RARE | two of our holdings, Ultragenyx Pharmaceutical and Agios Pharmaceuticals, were both lower on regulatory setbacks. |
| RBLX | An overweight position in Roblox Corp. (RBLX) detracted from performance. The stock declined following quarterly earnings, which signaled slower profit growth and uncertainty around future bookings. |
| SE | We also exited Sea Limited due to significant adverse investor sentiment following a worse-than-expected earnings report where a capex announcements on logistic networks and fulfilment led to margin compression. Experience suggests that when companies go through capex cycles, sentiment can remain volatile until investors are satisfied that the expenditure will lead to a bigger and better business. |
| SHOP.TO | Non dividend paying technology names Shopify and Celestica had also meaningful contribution to the index returns for the year, detracting our relative outcome. |
| SPOT | Spotify is the world's leading audio streaming platform. Third-quarter results showed continued operating progress, with users increasing 11% to 713 million and subscribers growing 12% to 281 million. Meanwhile, operating income expanded to a mid-teens margin, alongside a record quarterly free cash flow. Despite the momentum, the shares weakened as investors reset near-term margin expectations. Spotify has been a top contributor to long-term Fund performance, and we remain confident that pricing, product innovation, advertising efficiency, and an expanding ecosystem can continue to widen margins over time, as reinforced this quarter by the launch of Spotify recommendations within ChatGPT. |
| SQ | Block operates the Square platform that facilitates merchant payments and the Cash App platform that allows individuals to send and receive money. We exited Block due to our concerns around management's execution. |
| TSM | TSMC leads the MSCI Emerging Markets Index as the manufacturer in the AI ecosystem. |
| V | We added to our holdings in Visa Inc. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||