Investment Firm Reports Challenges Amid Mixed Market Performance

NEW YORK, NY — SGA, an investment management company, unveiled its third-quarter investor letter for its U.S. Large Cap Growth Strategy on January 1, 2026. The fund reported a gross return of -1.3% and a net return of -1.4% during the quarter, contrasting sharply with the 10.5% return from the Russell 1000 Growth Index and an 8.1% gain from the S&P 500 Index. The firm aims to invest in high-quality growth companies projected to maintain consistent mid-teens earnings growth.

According to SGA, the market in Q3 favored lower-quality stocks and cyclical industries, negatively impacting its investment strategy. The investor letter noted that while management believes in the long-term stability of their chosen stocks, shifting market conditions have posed recent challenges.

One highlighted holding, Intuit Inc. (NASDAQ: INTU), saw its share price decrease by 0.10% over the month preceding the report. Despite this, Intuit’s shares gained 6.36% over the past year, closing at $662.42 on December 31, 2025, and boasting a market capitalization of approximately $184.418 billion.

SGA remarked, “Intuit Inc. was a detractor from performance during the quarter as cautious guidance for FY 2026 led to investor disappointment. The company’s strong fiscal-year results showed 15% revenue growth, but guidance for a slower 12-13% revenue growth next year did not meet investor expectations, despite aligning with internal estimates. The impact of large prepayments and macroeconomic uncertainties in the U.S. worsened cash flow challenges.”

Despite current hurdles, SGA remains optimistic about Intuit’s long-term potential, citing its strong brand and leadership in core markets. They maintain an above-average weight position in the stock while adjusting their investment based on market conditions.

As of Q3 2025, 96 hedge funds held Intuit shares, a decrease from 105 in the previous quarter. In their recent financial report, the company announced a revenue increase of 18% year-over-year, totaling $3.9 billion.

Moreover, while some stocks in the AI sector show greater upside potential, SGA continues to support Intuit as an attractive investment opportunity. They encourage investors to keep an eye on emerging trends that may reshape the performance landscape in the future.