Loomis Sayles, an esteemed investment management company, recently released its “Global Growth Fund” investor letter for the second quarter of 2026. The fund reported a return of 6.43%, which fell short of the MSCI ACWI Index’s return of 14.93%. The fund follows a long-term private equity investment strategy, focusing on high-quality businesses with sustainable competitive advantages and investing at discounts to intrinsic value. As of the end of the quarter, the fund maintained overweight positions in communication services, consumer discretionary, and healthcare sectors, while being underweight in information technology, financials, industrials, and consumer staples sectors.
One of the standout performers in the fund’s portfolio highlighted in the Q2 2026 investor letter was Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc., the parent company of Google, is a tech giant known for its online search and advertising platforms, cloud solutions, and artificial intelligence services. The company’s stock closed at $341.75 per share on August 21, 2026, with a market capitalization of $4.2 trillion. Alphabet Inc. recorded a one-month return of 4.65% and a 52-week gain of 63.39%.
In the investor letter, Loomis Sayles Global Growth Fund provided insights on Alphabet Inc., emphasizing its dominant position in the online search and advertising market, cloud services, and its goal of organizing global information. Google’s strong ecosystem of consumers, advertisers, and publishers enables it to deliver relevant search results and high returns for advertisers. The company’s emerging cloud business, with less than 10% market share globally, is seen as a growth opportunity.
Alphabet Inc. holds the 7th position in the list of 40 Most Popular Stocks Among Hedge Funds. At the end of the first quarter, 201 hedge fund portfolios included Alphabet Inc., slightly lower than the previous quarter. In 2025, the company achieved its first-ever $400 billion annual revenue milestone, and in Q1 2026, its consolidated revenue reached $109.9 billion, up 22% year-over-year.
While Alphabet Inc. is viewed favorably as an investment, some AI stocks are seen as having greater upside potential with lower downside risk. Investors are advised to explore other AI stocks that may offer significant growth opportunities. For more information on Alphabet Inc. and other investment opportunities, readers can refer to additional articles and hedge fund investor letters for valuable insights.
In conclusion, Loomis Sayles Global Growth Fund’s investment in Alphabet Inc. showcases the company’s confidence in the tech giant’s long-term growth prospects. With a strong position in various tech segments and a solid financial performance, Alphabet Inc. continues to be a key player in the digital landscape.
