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 Arm Holdings plc (NASDAQ:ARM) as a leading contributor. Arm Holdings plc (NASDAQ:ARM) is a UK-based technology company that develops and licenses central processing unit designs and related technologies for semiconductor companies and original equipment manufacturers. On August 21, 2026, Arm Holdings plc (NASDAQ:ARM) closed at $243.32 per share. The one-month return of Arm Holdings plc (NASDAQ:ARM) was -8.64%, and its shares gained 76.60% over the past 52 weeks. Arm Holdings plc (NASDAQ:ARM) has a market capitalization of $259.87 billion.
SGA Global Growth Strategy stated the following regarding Arm Holdings plc (NASDAQ:ARM) in its Q2 2026 investor letter:
"Arm Holdings plc (NASDAQ:ARM), leading designer and licensor of CPU architectures and related subsystems, was a top contributor to performance again this quarter. The company delivered solid quarterly results, including 20% revenue growth and 12% profit growth, with continued strength in licensing activity and sustained royalty expansion despite a tougher comparison period. Management guidance reinforced confidence in maintaining roughly 20% revenue growth, supported by increasing demand for Arm-based CPUs and expanding adoption across data center and AI workloads, which helped offset expected weakness in handset markets. Confidence was further supported by evidence of strong CPU demand, improving share gains versus x86 architectures, and growing customer traction, including an expanding roster of signed partners and management's confidence in achieving long-term revenue targets. With strong pricing power, highly recurring revenues, and expanding royalty rates as Arm captures more value across the compute stack, we continue to view the company as a high-quality, long-term compounder well-positioned to benefit from the proliferation of AI and power efficient computing. We
In its second-quarter 2026 investor letter, SGA Global Growth Strategy highlighted Arm Holdings plc (NASDAQ:ARM) as a leading contributor. Arm Holdings plc (NASDAQ:ARM) is a UK-based technology company that develops and licenses central processing unit designs and related technologies for semiconductor companies and original equipment manufacturers. On August 21, 2026, Arm Holdings plc (NASDAQ:ARM) closed at $243.32 per share. The one-month return of Arm Holdings plc (NASDAQ:ARM) was -8.64%, and its shares gained 76.60% over the past 52 weeks. Arm Holdings plc (NASDAQ:ARM) has a market capitalization of $259.87 billion.
SGA Global Growth Strategy stated the following regarding Arm Holdings plc (NASDAQ:ARM) in its Q2 2026 investor letter:
"Arm Holdings plc (NASDAQ:ARM), leading designer and licensor of CPU architectures and related subsystems, was a top contributor to performance again this quarter. The company delivered solid quarterly results, including 20% revenue growth and 12% profit growth, with continued strength in licensing activity and sustained royalty expansion despite a tougher comparison period. Management guidance reinforced confidence in maintaining roughly 20% revenue growth, supported by increasing demand for Arm-based CPUs and expanding adoption across data center and AI workloads, which helped offset expected weakness in handset markets. Confidence was further supported by evidence of strong CPU demand, improving share gains versus x86 architectures, and growing customer traction, including an expanding roster of signed partners and management's confidence in achieving long-term revenue targets. With strong pricing power, highly recurring revenues, and expanding royalty rates as Arm captures more value across the compute stack, we continue to view the company as a high-quality, long-term compounder well-positioned to benefit from the proliferation of AI and power efficient computing. We
2 months ago
