Sustainable Growth Advisers (SGA), an investment management company, released its first-quarter 2026 investor letter for its "Global Growth Strategy." A copy of the letter can be downloaded here. The SGA Global Growth Portfolio returned -13.6% (Gross) and -13.8% (Net) compared to the MSCI ACWI return of -3.2% and the MSCI ACWI Growth return of -7.7%. AI disruption narratives significantly affected markets in the first two months of the quarter, leading to declines in software, information services, payments, and insurance brokers. In March, geopolitical tensions in the Middle East caused a spike in oil prices, contributing to market volatility and prompting investors to adopt a more cautious stance. The firm believes prioritizing high-quality businesses with strong balance sheets, durable cash flows, and diversified end markets provides resilience against short-term geopolitical shocks. In addition, you can check the Strategy's top 5 holdings for its best picks for 2026.
In its first-quarter 2026 investor letter, SGA Global Growth Strategy highlighted HDFC Bank Limited (NYSE:HDB). HDFC Bank Limited (NYSE:HDB) is a leading private sector bank in India that provides banking and financial products and services. On June 16, 2026, HDFC Bank Limited (NYSE:HDB) closed at $25.27 per share. One-month return of HDFC Bank Limited (NYSE:HDB) was 2.60%, and its shares lost 32.07% over the past 52 weeks. HDFC Bank Limited (NYSE:HDB) has a market capitalization of $129.7 billion.
SGA Global Growth Strategy stated the following regarding HDFC Bank Limited (NYSE:HDB) in its Q1 2026 investor letter:
"HDFC Bank Limited (NYSE:HDB) was a detractor from performance during the quarter following earnings as deposit growth fell short of market expectations. Sentiment was further pressured by the unexpected resignation of the bank's non-executive chairman, which contributed to elevated volatility despite swift action by regulators and the board to reaffirm confidence and the absence of any material operational, financial, or governance issues. Additional headlines related to legacy compliance matters added to near-term noise, despite appearing isolated and non-systemic in nature. Fundamentally, results were solid with net income up 12% backed by good ****** et quality. Guidance was constructive as management reiterated earnings growth for March and the next fiscal year earnings growth. ****** et quality continues to be strong, cost of funding remains well-controlled, and management has reiterated its focus on improving the loan to deposit ratio. As liquidity conditions in India normalize and merger related disruptions fade, we expect loan growth to reaccelerate, margins to stabilize, and operating leverage to improve. Given HDFC Bank's scale, brand strength, and long history of disciplined execution, we see the recent weakness as sentiment driven, and we continue to view the bank as a high-quality, long-term compounder supporting mid-teen earnings and revenue growth."
In its first-quarter 2026 investor letter, SGA Global Growth Strategy highlighted HDFC Bank Limited (NYSE:HDB). HDFC Bank Limited (NYSE:HDB) is a leading private sector bank in India that provides banking and financial products and services. On June 16, 2026, HDFC Bank Limited (NYSE:HDB) closed at $25.27 per share. One-month return of HDFC Bank Limited (NYSE:HDB) was 2.60%, and its shares lost 32.07% over the past 52 weeks. HDFC Bank Limited (NYSE:HDB) has a market capitalization of $129.7 billion.
SGA Global Growth Strategy stated the following regarding HDFC Bank Limited (NYSE:HDB) in its Q1 2026 investor letter:
"HDFC Bank Limited (NYSE:HDB) was a detractor from performance during the quarter following earnings as deposit growth fell short of market expectations. Sentiment was further pressured by the unexpected resignation of the bank's non-executive chairman, which contributed to elevated volatility despite swift action by regulators and the board to reaffirm confidence and the absence of any material operational, financial, or governance issues. Additional headlines related to legacy compliance matters added to near-term noise, despite appearing isolated and non-systemic in nature. Fundamentally, results were solid with net income up 12% backed by good ****** et quality. Guidance was constructive as management reiterated earnings growth for March and the next fiscal year earnings growth. ****** et quality continues to be strong, cost of funding remains well-controlled, and management has reiterated its focus on improving the loan to deposit ratio. As liquidity conditions in India normalize and merger related disruptions fade, we expect loan growth to reaccelerate, margins to stabilize, and operating leverage to improve. Given HDFC Bank's scale, brand strength, and long history of disciplined execution, we see the recent weakness as sentiment driven, and we continue to view the bank as a high-quality, long-term compounder supporting mid-teen earnings and revenue growth."
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