Sands Capital’s Q1 2026 investor letter cites competitive challenges for Sea Limited’s Shopee platform amid market shifts.
Sea Limited (SE) faced downward pressure in Q1 2026 as competitive strains impacted its e-commerce platform, Shopee. The decline was noted in Sands Capital Management’s Select Growth Strategy investor letter, which highlighted broader market challenges during the quarter.
U.S. large-cap growth stocks fell in Q1, with the Russell 1000 Growth Index returning -9.8%. Sands Capital’s Select Growth Strategy underperformed, posting a -12.9% return, driven by concerns over AI disruption and a rotation toward asset-heavy sectors. The strategy’s focus on asset-light, high-growth businesses struggled amid the shift.
Market dispersion was influenced by AI-related investments, which redirected capital toward sectors less vulnerable to disruption. Geopolitical tensions late in the quarter further contributed to a risk-off environment, affecting equities despite strong corporate fundamentals.