Sustainable Growth Advisers (SGA), an investment management company, released its second-quarter 2026 investor letter for its "Global Growth Strategy." The letter can be downloaded here. The SGA Global Growth Portfolio returned 7.4% gross and 7.2% net, compared with 14.9% for the MSCI ACWI and 19.8% for the MSCI ACWI Growth Index. Momentum leadership and enthusiasm around AI infrastructure drove markets, with semiconductor, memory, and hardware stocks accounting for much of the gain. Although the portfolio owned AI beneficiaries, broader holdings lagged despite fundamentals, as median revenue and EPS growth reached 12% and 14% and more than 60% of the holdings beat expectations. SGA believes valuation compression reflects sentiment rather than weaker business quality, leaving the portfolio near its widest discount to the market since inception. The firm continues to favor durable compounders and expects 16% revenue growth and 20% earnings growth over three years. Also, please check the Fund's top five holdings to see its best picks for 2026.
In its second-quarter 2026 investor letter, SGA Global Growth Strategy highlighted Alcon Inc. (NYSE:ALC). Alcon Inc. (NYSE:ALC) is a Swiss-based healthcare and medical technology company focused on eye care products. On August 21, 2026, Alcon Inc. (NYSE:ALC) closed at $73.63 per share. The one-month return of Alcon Inc. (NYSE:ALC) was 9.44% and its shares lost 8.83% over the past 52 weeks. Alcon Inc. (NYSE:ALC) has a market capitalization of $36.68 billion.
SGA Global Growth Strategy stated the following regarding Alcon Inc. (NYSE:ALC) in its Q2 2026 investor letter:
"During the quarter, we exited our position in Alcon Inc. (NYSE:ALC). Alcon remains a leader in eye care with exposure to increasing secular demand driven by aging and myopia, with market leadership across multiple categories. Strong launches in new equipment and eye drops drove topline growth of 6% constant currency and earnings per share growth of 16%+ in Q1. This was slightly below expectations of 7% growth, as the market for cataracts and contact lenses remains subdued. Additionally, the premium intraocular lens for cataracts is getting more competitive, with Alcon remaining the leader but expected to continue to cede share from the highs of 80%+ as competitors are catching up. Management continues to execute well on product launches to offset pressures in intraocular lens, which accounts for 17% of total sales. However, to account for the increased competition and subdued market conditions overall, we gradually reduced the position before ultimately redeploying the capital into a higher growth opportunity in Schneider Electric."

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