SGA Global Growth Fund Q1 2026 Commentary

The SGA Global Growth Portfolio faced a challenging first quarter in 2026, recording a gross return of -13.6% and a net return of -14.3%. This performance contrasts sharply with the MSCI ACWI's -3.2% and the MSCI ACWI Growth's -7.7% returns, highlighting a period of significant underperformance for the portfolio. A primary factor influencing this outcome was the pervasive impact of AI-driven disruption across various sectors, including software, information services, payments, and insurance brokers, which reshaped market dynamics and investor sentiment.

Amidst these market shifts, the reemergence of geopolitical risks and broader macroeconomic uncertainties further contributed to a cautious investment climate. The SGA investment philosophy centers on constructing high-conviction portfolios, targeting quality growth enterprises that demonstrate predictable revenue streams and robust cash flow generation. The firm aims for these companies to achieve consistent mid-teens earnings growth, ensuring reduced volatility and sustained financial health.

Looking ahead, the commitment to identifying resilient, high-growth businesses remains. Despite the recent downturn, the long-term strategy focuses on sectors and companies poised for sustainable expansion. By adhering to a rigorous selection process that prioritizes fundamental strength and growth potential, the portfolio seeks to navigate future market complexities and deliver value to its investors over time.