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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Zevenbergen Technology Fund 2026 Q3 Investor Letter | Buyside Digest

Back to Fund Profile (Zevenbergen Technology Fund)

Primary Source Intelligence • Q3 2026 Letter Analysis

Zevenbergen Technology Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Zevenbergen Technology Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD+2.7%

YTD+30.82%

Annualized+16.34%

Positioning StanceCONSTRUCTIVE

Market CapAll Cap

GeographyUS

Digest Analysis

Quick Take

"Accelerating enterprise artificial intelligence adoption and robust hyperscaler cloud demand are translating infrastructure investments into expanding earnings. Moderating valuation multiples favor durable secular growth across enterprise software, memory, and computing systems."

Executive Summary

The Virtus Zevenbergen Technology Fund generated a net return of 2.70% for Class INST shares during the third quarter of 2026, slightly trailing the S&P North American Technology Sector Index return of 3.33% and bringing year-to-date net performance to 30.82%. Software, internet services, and cybersecurity drove positive returns, while detractions centered in semiconductor hardware, automotive manufacturing, and electrical components. The portfolio remained fully invested in high-conviction growth equities without shifting into defensive cash buffers. Macro conditions remained volatile as renewed U.S.-Iran tensions propelled crude oil above $100 per barrel and the Federal Reserve enacted a September interest rate increase, driving Treasury yields to multi-decade peaks. Despite broader market pressure and small-cap retrenchment, large-cap corporate earnings growth outpaced price gains, pulling the S&P 500 forward price-to-earnings multiple below both its start-of-year level and five-year average. Improving cloud demand among hyperscalers reinforced confidence in artificial intelligence data center spending. Portfolio contributors were led by Microsoft and NVIDIA, supported by accelerating Azure cloud consumption, enterprise Copilot traction, and relentless demand for accelerated computing architectures. Detractors included Micron Technology and Applied Materials amid memory cyclicality debates and geopolitical export controls. Core capital remains concentrated in secular leaders, led by Microsoft at 9.73%, NVIDIA at 9.18%, Alphabet at 9.10%, and Apple at 7.57%.

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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

78%

CautiousHigh

High Conviction (78%)

The portfolio reflects high conviction through significant allocation concentration, with its top three holdings—Microsoft, NVIDIA, and Alphabet—accounting for roughly 28% of fund assets. Management emphasizes staying invested in durable compounders across volatile market headlines rather than trading short-term cycles, though broader thematic exposure across adjacent hardware and software sectors introduces moderate diversification.

Growth Outlook

72%

BearishBullish

Bullish (72%)

Management maintains a constructive outlook, highlighting that robust corporate earnings have grown faster than equity prices, driving large-cap forward price-to-earnings ratios below five-year averages. Improving cloud demand across hyperscalers reinforces confidence in data center capital expenditures, although persistent Federal Reserve tightening and multi-decade borrowing costs provide a tempered macro backdrop.

Risk Appetite

75%

DefensiveAggressive

Aggressive (75%)

Portfolio positioning remains aggressively tilted toward secular growth equities, maintaining high concentrations in market-leading hyperscalers, semiconductor innovators, and enterprise software platforms. Management shows no inclination toward defensive cash reserves or macro hedging, choosing instead to remain fully invested through rate-driven volatility and cyclical pullbacks.

Capital Deployment

50%

De-riskingDeploying

Net Neutral (50%)

Capital deployment remains stable, with the portfolio fully invested across primary conviction names and no disclosed shifts into defensive cash buffers. Portfolio actions reflect rebalancing and holding through cyclical digestion rather than large net balance sheet shifts or capital raises.

Forward Guidance

70%

CautiousExpansionary

Expansionary (70%)

Forward posture favors staying fully invested in companies demonstrating expanding revenues, margins, and widening moats rather than reacting to short-term macroeconomic headlines. Management signals continued commitment to the generative AI infrastructure buildout while monitoring the broadening adoption wave into robotics, space, and enterprise applications.

Language Signal

70%

BearishBullish

Bullish (70%)

The commentary employs decisively constructive growth language, citing insatiable appetite for advanced computing, record gross margins, and expanding enterprise productivity. Bearish terminology is primarily confined to external macro factors, including interest rate headwinds, geopolitical oil shocks, and Chinese export scrutiny.

Perceived Risk

65%

Low RiskElevated

Elevated Risk (65%)

Macro and geopolitical risks are actively acknowledged, with specific attention directed toward oil shocks exceeding $100 per barrel from renewed U.S.-Iran hostilities, multi-decade high Treasury yields, and potential further Federal Reserve hikes. Additionally, regulatory friction via U.S.-China semiconductor trade restrictions and potential memory overcapacity represent meaningful sector-level risks.

Opportunity Density

70%

ScarceAbundant

Abundant (70%)

The investable opportunity set is viewed as expansive as the generative AI cycle broadens from core infrastructure providers into enterprise software, edge robotics, and legacy industry disruption. Management identifies expanding addressable markets across multiple capitalization tiers, though disciplined selection remains anchored in proven technological moats.

Time Horizon

80%

Short-TermLong-Term

Decade+ (80%)

Management operates with a multi-year compounding perspective, advising investors to ignore short-term headline volatility in favor of underwriting secular growth over full product and capital expenditure cycles. This extended horizon is supported by citations of multi-year take-or-pay agreements, eight-quarter semiconductor customer visibility, and fiscal 2027 financial targets.