Sustainable Growth Consultants (SGA), an investment management company, has released an investor letter for the first quarter of 2026 for its “Global Growth Strategy.” A copy of the book can be downloaded here. The SGA Global Growth Portfolio returned -13.6% (Gross) and -13.8% (Net) compared to MSCI ACWI’s return of -3.2% and MSCI ACWI Growth’s return of -7.7%. Reports of AI disruptions hit markets hard in the first two months of the quarter, leading to declines in software, information services, payments, and insurance consumers. In March, political tensions in the Middle East caused oil prices to rise, contributing to market volatility and prompting investors to take a cautious stance. The company believes that prioritizing high-quality businesses with strong balance sheets, long-term cash flows, and diversified end markets provides the strength to withstand the country’s short-term conditions. In addition, you can check out the top 5 strategy picks for 2026.
In its 2026 Q1 investor note, SGA Global Growth Strategy highlighted stocks like Microsoft Corporation (NASDAQ:MSFT). Microsoft Corporation (NASDAQ:MSFT) is an international software company that develops and supports software, services, devices, and solutions, holding leading positions in software, cloud infrastructure, productive AI, and gaming. On June 15, 2026, Microsoft Corporation (NASDAQ:MSFT) closed at $399.76 per share. Microsoft Corporation (NASDAQ:MSFT)’s one-month return was -5.64%, and its shares lost 17.61% in the last 52 weeks. Microsoft Corporation (NASDAQ:MSFT) has a market capitalization of $2.97 trillion.
SGA Global Growth Strategy said the following about Microsoft Corporation (NASDAQ:MSFT) in its Q1 2026 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) was a drag on performance during the quarter as investor expectations around cloud acceleration and AI-driven overhead were limited. While revenue grew 15% and EPS increased 21% in constant currency, Azure’s growth slightly missed expectations, and management’s comments suggested that cloud growth is being actively managed through funding rather than forced. This shift has reduced confidence in the near-term upside, especially since guidance implies a stable, but less surprising, growth trajectory. Investor sentiment was also weighed down by rising inflation related to AI investments. We believe that Microsoft’s entrenched business position, consistent revenue base, and deep integration across product, cloud, and security provide significant long-term benefits that are difficult to replicate. As clarity improves about AI returns and cloud growth accelerates, we remain confident in Microsoft’s ability to generate strong double-digit earnings and revenue growth over the long term. “
