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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Sands Capital Global Growth Fund 2026 Q3 Investor Letter | Buyside Digest

Back to Fund Profile (Sands Capital Global Growth Fund)

Primary Source Intelligence • Q3 2026 Letter Analysis

Sands Capital Global Growth Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Sands Capital Global Growth Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD-1.9%

YTD+2%

Annualized+14.3%

Positioning StanceCONSTRUCTIVE

Market CapLarge Cap

GeographyUS, Europe, Asia, LatAM

Digest Analysis

Quick Take

"Constructive on mission-critical enterprise AI platforms and aerospace aftermarket beneficiaries, initiating positions in Palantir and Woodward while maintaining high-conviction holdings across dominant semiconductor and infrastructure franchises."

Executive Summary

The Sands Capital Global Growth strategy declined 1.9% net of fees in the third quarter of 2026, lagging the MSCI ACWI benchmark return of 1.6%. Year-to-date, the portfolio has advanced 2.0% net of fees compared to 13.0% for the index. Relative underperformance during the quarter was primarily driven by the broader pullback across the artificial intelligence infrastructure supply chain and the strategy's underweight exposure to value-oriented sectors including energy, materials, and industrials, as well as the deliberate avoidance of certain mega-cap technology companies. The portfolio held a 1.8% cash position at quarter-end, with North America (55.2%) and Western Europe (19.1%) representing the primary geographic allocations. Macroeconomic volatility was pronounced during the quarter, sparked by a sharp July drawdown across global semiconductor equities, surging government bond yields, rising energy prices, and heightened investor scrutiny over artificial intelligence capital expenditure returns. Value-oriented equities outperformed growth by more than 400 basis points. Sands Capital views market movements as increasingly driven by mechanical index rebalancing and short-term passive factor rotations, which detach valuations from underlying fundamental business quality. Portfolio turnover remained disciplined at 24% over the trailing 12 months across 38 holdings. The strategy initiated new positions in Palantir Technologies and Woodward, funding these additions by trimming businesses where multiple expansion compressed the forward risk/reward profile. Top portfolio weights remain concentrated in long-term structural compounders, led by NVIDIA (9.4%), Taiwan Semiconductor (6.5%), Alphabet (5.7%), SK hynix (5.5%), and ASML Holding (5.1%).

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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

82%

CautiousHigh

High Conviction (82%)

The portfolio reflects high conviction through an active share of 83% and a 50% concentration in its top 10 holdings across 38 total businesses. The manager maintained large weights in names like NVIDIA (9.4%) and ASML (5.1%) through market volatility, while deploying capital into new high-conviction ideas like Palantir and Woodward.

Growth Outlook

65%

BearishBullish

Bullish (65%)

The manager remains constructive on durable secular growth businesses while observing skittish market sentiment and short-term passive factor rotations. Valuations for the strategy's holdings stand at 19x forward earnings against 35% estimated annual earnings growth, offering attractive relative entry points.

Risk Appetite

72%

DefensiveAggressive

Aggressive (72%)

Capital remains fully deployed with cash at just 1.8%, reflecting a persistent growth orientation and an appetite for concentrated equity risk. The team rotated capital out of multiple-expanded winners directly into new cyclical growth and tech holdings rather than raising cash.

Capital Deployment

52%

De-riskingDeploying

Net Neutral (52%)

Cash levels remained minimal at 1.8%, indicating a net neutral cash allocation environment. Capital deployment was entirely balanced between additions to Palantir and Woodward and the trimming of existing multiple-expanded positions.

Forward Guidance

70%

CautiousExpansionary

Expansionary (70%)

Portfolio actions indicate a selective deployment bias, as seen in the additions of Woodward and Palantir Technologies during the quarter. The managers express an active intention to exploit valuation dislocations created by index-driven and thematic factor volatility.

Language Signal

68%

BearishBullish

Bullish (68%)

Bullish terminology surrounding market leadership, secular inflections, earnings durability, and attractive valuations outweighs cautious language regarding interest rates and export controls. The managers emphasize that discretion is currently offered near the cheapest valuations seen in strategy history.

Perceived Risk

58%

Low RiskElevated

Moderate Risk (58%)

The manager explicitly highlights risks stemming from rising bond yields, energy price spikes, Chinese semiconductor competition, U.S. export restrictions, and interest rate headwinds on housing demand, but views them as manageable within a long-term framework.

Opportunity Density

66%

ScarceAbundant

Abundant (66%)

The managers identify distinct, high-quality opportunities across AI enterprise enablement, edge network infrastructure, and aerospace aftermarket programs. While mindful of broad market concentration, they see compelling asymmetric upside in select mispriced compounders.

Time Horizon

88%

Short-TermLong-Term

Decade+ (88%)

The fund emphasizes an average expected holding period exceeding five years, with an annualized turnover rate of just 18% to 24%. Commentaries consistently focus on long-term compound earnings power, multi-decade aftermarket lifecycles, and 2028-2030 financial horizons.