Overview
- SGA reported Q4 2025 returns of 0.3% gross and 0.2% net, trailing the Russell 1000 Growth at 1.1% and the S&P 500 at 2.7% after what it called its most challenging year since inception.
- Salesforce was a top contributor as subscription revenue and cRPO exceeded guidance, with Agentforce ARR rising over 300% and Data Cloud ARR more than doubling.
- SGA added to Salesforce by reallocating from higher‑multiple software names, citing management’s 12–18 month revenue acceleration target and its own outlook for low‑teens earnings growth over three years.
- Microsoft detracted after Azure grew 39% below expectations and guidance weakened due to supply constraints, with SGA noting lackluster Copilot adoption and ongoing reliance on OpenAI yet maintaining an above‑average weight.
- The strategy initiated a below‑average position in Broadcom, highlighting its move to rack‑scale solutions, new scale‑up Ethernet products, customer commitments including Anthropic, and improving visibility as AI demand shifts toward inferencing.