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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Nomura Large Cap Growth Fund 2026 Q2 Investor Letter | Buyside Digest

Back to Fund Profile (Nomura Large Cap Growth Fund)

Primary Source Intelligence • Q2 2026 Letter Analysis

Nomura Large Cap Growth Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Nomura Large Cap Growth Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD+12.61%

YTD-1.62%

Annualized+11.99%

Positioning StanceCAUTIOUS

Market CapLarge Cap

GeographyUS

Digest Analysis

Quick Take

"Driven by strong compute demand in Advanced Micro Devices and Taiwan Semiconductor Manufacturing, while initiating Eli Lilly and exiting CoStar Group amid an emerging artificial intelligence capex digestion cycle."

Executive Summary

Nomura Large Cap Growth Fund Institutional Class shares advanced 12.69% net of fees in 2Q 2026, lagging its benchmark, the Russell 1000 Growth Index, which returned 16.74%. Year-to-date, the fund recorded a net return of -1.50% compared to benchmark gains. The strategy experienced relative performance headwinds due to its underweight positioning in high-beta semiconductor capital equipment manufacturers that surged over 100%, alongside factor headwinds as the market minimized quality and prioritized speculative momentum. The macroeconomic environment was marked by resilient US consumer spending and employment, offset by heightened rate uncertainty as discussions shifted unexpectedly toward potential Federal Reserve rate hikes under Chair Kevin Warsh. In technology, corporate spending indicated an impending digestion phase in artificial intelligence as hyperscalers face taxing capital expenditures with delayed returns on investment, leading to enterprise-level constraints on token usage and shifting large language model pricing structures. Portfolio activity centered on valuation discipline and selective reallocation. The fund initiated a position in Eli Lilly & Co. to capitalize on expanding mass-market GLP-1 drug adoption while completely divesting CoStar Group Inc. due to reduced reporting transparency. Top relative performance contributors included Advanced Micro Devices and Taiwan Semiconductor Manufacturing, while an underweight position in semiconductor equipment makers and a pullback in Intercontinental Exchange served as key detractors.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

62%

CautiousHigh

Moderate (62%)

A moderately concentrated portfolio where the top 10 positions account for 66.37% of assets, coupled with decisive position-level actions such as initiating Eli Lilly and completely exiting CoStar Group. However, the score is tempered by benchmark-aware institutional constraints, diversified sector exposures, and explicit underweighting rather than shorting of overvalued leaders.

Growth Outlook

45%

BearishBullish

Neutral (45%)

A slightly cautious, balanced outlook as the manager highlights deteriorating visibility, aggressive hyperscaler capex without near-term ROI, and shifting interest rate expectations toward potential Fed rate hikes. While the underlying US economy remains healthy, the manager foresees an inevitable digestion period across market-leading AI themes.

Risk Appetite

48%

DefensiveAggressive

Balanced (48%)

The fund's defensive discipline against prevailing speculative market behavior, consciously refusing to chase surging high-beta semiconductor equipment stocks that doubled during the quarter. The fund maintains standard net equity exposure but leans away from aggressive momentum in favor of cash-flow-durable compounders.

Capital Deployment

50%

De-riskingDeploying

Net Neutral (50%)

The fund exhibits net neutral capital deployment, executing balanced portfolio reallocations by initiating Eli Lilly and funding it through the full liquidation of CoStar Group and routine position sizing without significant cash-level changes.

Forward Guidance

65%

CautiousExpansionary

Expansionary (65%)

An opportunistic action bias, with the manager explicitly stating an intention to use market volatility and the expected AI digestion pause to build positions in high-quality AI-exposed businesses previously excluded on valuation grounds.

Language Signal

46%

BearishBullish

Balanced (46%)

Directional language balances structural opportunities in GLP-1s and advanced semiconductor manufacturing against cautionary words like 'obfuscating,' 'taxing,' 'headwinds,' 'digestion period,' and 'unsustainably high growth rates.'

Perceived Risk

68%

Low RiskElevated

Elevated Risk (68%)

Prominent discussion of macro and industry risks, including hawkish Federal Reserve surprises, corporate retrenchment in AI token spending, Middle East conflict volatility, and regulatory index weight limitations following the Russell reconstitution.

Opportunity Density

52%

ScarceAbundant

Selective (52%)

The manager views current broad market valuations in technology and AI hardware as stretched, noting that attractive entry points require patience and volatility to bring premier compounders back into an acceptable valuation range.

Time Horizon

72%

Short-TermLong-Term

Decade+ (72%)

A multi-year, full-market-cycle investment horizon, explicitly stressing that consistent profitability and earnings compounders will be rewarded over time despite near-term underperformance relative to high-beta momentum rallies.