SGA U.S. Large Cap Growth Strategy’s Top Performer: Alphabet (GOOG)
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ThePostMaster- 0
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Sustainable Growth Advisers (SGA), an investment management company, released its fourth-quarter investor letter for its “U.S. Large Cap Growth Strategy.” A copy of the letter can be downloaded here. In Q4 2025, the Portfolio returned 0.3% (Gross) and 0.2% (Net) compared to 1.1% return for the Russell 1000 Growth Index and 2.7% gain for the S&P 500 Index. Rising volatility, coupled with broadening market leadership, improved the portfolio’s relative performance in the second half of the quarter. In 2025, the Portfolio faced its most challenging years since the firm’s inception in 2003. After a challenging year, the firm is encouraged by the robust growth potential in its portfolio and its historically attractive relative valuation. Progressing further, the portfolio is well-positioned to gain from a shift away from high momentum dynamics in U.S. markets and a broadening of market leadership. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, SGA U.S. Large Cap Growth Strategy highlighted stocks like Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments, and is a significant contributor to the strategy’s performance in the quarter. On February 9, 2026, Alphabet Inc. (NASDAQ:GOOG) stock closed at $324.40 per share with a market capitalization of $3.92 trillion. One-month return of Alphabet Inc. (NASDAQ:GOOG) was -3.58%, and its shares gained 73.41% of their value over the last 52 weeks.
SGA U.S. Large Cap Growth Strategy stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its fourth quarter 2025 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) was a top contributor during the quarter, driven by accelerating growth across its core businesses and strong execution in AI-enabled products. Search queries and revenues both accelerated, challenging concerns about competitive threats from AI chat tools and supporting the case for continued innovation-driven market expansion. YouTube and Cloud also posted robust growth, with Cloud backlog and revenues benefiting from strong enterprise demand for AI solutions. Alphabet’s disciplined margin management and diversified revenue streams, alongside strategic investments in AI and cloud, position it well for continued growth. Despite ongoing regulatory and competitive pressures, Alphabet’s leadership in search, video, and cloud, combined with its ability to monetize a loyal global user base, should support double-digit earnings and revenue growth in the years ahead. We raised the target to an above-average weight position.”
