Select Growth Strategy returned -12.9% versus Russell 1000 Growth’s -9.8% amid AI-driven market rotation and geopolitical tensions.
Sands Capital Management’s Select Growth Strategy posted a -12.9% return in Q1 2026, trailing the Russell 1000 Growth Index’s -9.8%. The underperformance stemmed from a market shift toward asset-heavy, AI-benefiting sectors, while the Strategy’s focus on asset-light, service-oriented businesses faced headwinds.
The quarter saw sharp dispersion driven by AI advancements, with capital flowing into sectors less vulnerable to disruption. Late-quarter geopolitical tensions with Iran triggered a broad risk-off move, further pressuring growth stocks. Despite strong corporate fundamentals, the Strategy’s underweights in cyclical and defensive sectors hurt relative results.
Shopify Inc. (NASDAQ:SHOP) was highlighted as a top holding in the Strategy’s Q1 2026 investor letter, reflecting its position in the e-commerce technology sector.