Sands Capital, an investment management company, released its "Sands Capital Select Growth Fund" Q2 2026 investor letter. The letter can be downloaded here. Select Growth Fund targets U.S. businesses driving significant structural change through disruptive innovation. The fund returned 23.2% in the quarter, outperforming the Russell 1000 Growth Index's 16.7%. U.S. large-cap growth equities rebounded sharply, driven by improving corporate fundamentals and renewed investor confidence in AI, despite geopolitical uncertainties. However, the market's gains were narrow, concentrated among AI beneficiaries. The portfolio's success stemmed from strength in AI infrastructure holdings, especially memory and storage, supported by better pricing and tightening supply. As AI development advances, continuous demand for compute capacity is expected, prompting investments in memory, CPUs, AI chips, and semiconductor manufacturing to address emerging bottlenecks essential for scaling AI. Also, check the fund's top five holdings to see its best picks in 2026.
In its second-quarter 2026 investor letter, Sands Capital Select Growth Fund highlighted Intercontinental Exchange, Inc. (NYSE:ICE), a US-based financial services company that provides technology, data, and market infrastructure to financial institutions, corporations, and government entities. On September 1, 2026, Intercontinental Exchange, Inc. (NYSE:ICE) closed at $159.60 per share. Over the past month, Intercontinental Exchange, Inc. (NYSE:ICE) returned 4.85%, while its shares have declined 10.30% in the last 52 weeks. Intercontinental Exchange, Inc. (NYSE:ICE) has a market capitalization of $89.6 billion, and its stock has traded within a 52-week range of $121.79 to $177.00.
Sands Capital Select Growth Fund stated the following regarding Intercontinental Exchange, Inc. (NYSE:ICE) in its Q2 2026 investor letter:
"Intercontinental Exchange, Inc. (NYSE:ICE) is one of the world's largest operators of financial exchanges and clearinghouses. Shares declined as investor concerns around AI disruption in ICE's Mortgage business and potential competition from perpetual futures contracts weighed on the stock. Much of the underperformance appears to reflect multiple compression rather than a weakening of fundamentals, which remain solid. In our view, the market is overestimating the risk that AI will displace ICE Mortgage. The business is not simply a workflow solution; it is a platform that connects lenders, data vendors, and other participants required to originate, sell, and service mortgages, while also serving as a system of record for a significant portion of the U.S. mortgage ecosystem. We also believe concerns around perpetual futures competition are overstated, as the structure of these products may limit their use in institutional hedging and risk management, particularly before accounting for liquidity. As such, we believe the recent sell-off more than discounts these risks."
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In its second-quarter 2026 investor letter, Sands Capital Select Growth Fund highlighted Intercontinental Exchange, Inc. (NYSE:ICE), a US-based financial services company that provides technology, data, and market infrastructure to financial institutions, corporations, and government entities. On September 1, 2026, Intercontinental Exchange, Inc. (NYSE:ICE) closed at $159.60 per share. Over the past month, Intercontinental Exchange, Inc. (NYSE:ICE) returned 4.85%, while its shares have declined 10.30% in the last 52 weeks. Intercontinental Exchange, Inc. (NYSE:ICE) has a market capitalization of $89.6 billion, and its stock has traded within a 52-week range of $121.79 to $177.00.
Sands Capital Select Growth Fund stated the following regarding Intercontinental Exchange, Inc. (NYSE:ICE) in its Q2 2026 investor letter:
"Intercontinental Exchange, Inc. (NYSE:ICE) is one of the world's largest operators of financial exchanges and clearinghouses. Shares declined as investor concerns around AI disruption in ICE's Mortgage business and potential competition from perpetual futures contracts weighed on the stock. Much of the underperformance appears to reflect multiple compression rather than a weakening of fundamentals, which remain solid. In our view, the market is overestimating the risk that AI will displace ICE Mortgage. The business is not simply a workflow solution; it is a platform that connects lenders, data vendors, and other participants required to originate, sell, and service mortgages, while also serving as a system of record for a significant portion of the U.S. mortgage ecosystem. We also believe concerns around perpetual futures competition are overstated, as the structure of these products may limit their use in institutional hedging and risk management, particularly before accounting for liquidity. As such, we believe the recent sell-off more than discounts these risks."
#investor
2 months ago
