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 ServiceNow, Inc. (NYSE:NOW).