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| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
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Buyside Digest is not affiliated with, and does not endorse, Lord Abbett Developing Growth Fund. This analysis is provided for institutional research purposes only and is not investment advice.
"Lord Abbett Developing Growth Fund delivered 39% returns in Q2 2026, crushing its benchmark through concentrated bets on AI infrastructure, semiconductors, and defense technology. The manager sees earnings growth driving markets higher but demands selectivity, favoring quality companies with secular tailwinds and strong balance sheets over leveraged cyclicals."
Lord Abbett Developing Growth Fund returned 39.04% in Q2 2026, significantly outperforming the Russell 2000 Growth Index's 25.71% return. The fund's outperformance was driven by strong security selection in Information Technology, particularly semiconductor connectivity company Astera Labs, and Industrials, led by construction services firm Sterling Infrastructure. The manager maintains high conviction in AI-related opportunities across semiconductors, cloud infrastructure, and industrial companies enabling AI factory expansion and power infrastructure. Defense and space technology represents an emerging area of excitement, with AI driving an inflection in autonomous systems within this historically low-growth sector. While the manager believes earnings growth can carry markets higher over the year, they emphasize near-term selectivity given rising private credit risks, oil shock concerns, and AI disruption fears. The portfolio favors quality companies with secular growth, durable competitive advantages, strong cash flows, and balance sheets supporting continued investment, while avoiding businesses burdened by leverage, cyclicality, or aggressive AI assumptions. The fund's top holdings reflect this quality-growth focus across semiconductors, industrials, and healthcare.
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