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% gain. 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 DoorDash, Inc. (NASDAQ:DASH). DoorDash, Inc. (NASDAQ:DASH) is a US-based leading online food ordering and delivery platform. On September 2, 2026, DoorDash, Inc. (NASDAQ:DASH) closed at $226.24 per share. DoorDash, Inc. (NASDAQ:DASH) returned 8.87% over the past month, while its shares lost 9.06% over the past 52 weeks. DoorDash, Inc. (NASDAQ:DASH) has a market capitalization of $98.04 billion.
Sands Capital Select Growth Fund stated the following regarding DoorDash, Inc. (NASDAQ:DASH) in its Q2 2026 investor letter:
"The sales of DoorDash, Inc. (NASDAQ:DASH) and Nu Holdings reflected the high bar for inclusion in a concentrated portfolio of roughly 30 businesses. We continue to view both companies as high-quality businesses and will monitor them closely but believe the portfolio would be better served by reallocating capital toward AI infrastructure beneficiaries and other idiosyncratic growth opportunities."
DoorDash, Inc. (NASDAQ:DASH) is on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 107 hedge fund portfolios held DoorDash, Inc. (NASDAQ:DASH) at the end of the second quarter which was 117 in the previous quarter. While we acknowledge the potential of DoorDash, Inc. (NASDAQ:DASH) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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