Sands Capital, an investment management company, released its “Sands Capital Select Growth Fund” Q2 2026 investor letter. The letter can be downloaded here. Select Growth Fund targets U.S. businesses driving significant structural change through disruptive innovation. The fund returned 23.2% in the quarter, outperforming the Russell 1000 Growth Index’s 16.7%. U.S. large-cap growth equities rebounded sharply, driven by improving corporate fundamentals and renewed investor confidence in AI, despite geopolitical uncertainties. However, the market’s gains were narrow, concentrated among AI beneficiaries. The portfolio’s success stemmed from strength in AI infrastructure holdings, especially memory and storage, supported by better pricing and tightening supply. As AI development advances, continuous demand for compute capacity is expected, prompting investments in memory, CPUs, AI chips, and semiconductor manufacturing to address emerging bottlenecks essential for scaling AI. Also, check the fund’s top five holdings to see its best picks in 2026.
In its second-quarter 2026 investor letter, Sands Capital Technology Innovators Fund highlighted Spotify Technology S.A. (NYSE:SPOT). Spotify Technology S.A. (NYSE:SPOT) is a leading audio streaming subscription service provider monetizing through paid premium subscriptions and an ad-supported model. On September 1, 2026, Spotify Technology S.A. (NYSE:SPOT) closed at $544.15 per share. Over the past month, Spotify Technology S.A. (NYSE:SPOT) returned 12.84%, but its shares are down 21.97% over the past year. Spotify Technology S.A. (NYSE:SPOT) has a market capitalization of $111.86 billion, and its stock has traded within a 52-week range of $405.00 to $745.00.
Sands Capital Technology Innovators Fund stated the following regarding Spotify Technology S.A. (NYSE:SPOT) in its Q2 2026 investor letter:
“Spotify Technology S.A. (NYSE:SPOT) shares declined following first-quarter results after management guided margins lower due to a near-term increase in operating expenses. In our view, this spending reflects investment in future product development rather than a structurally higher cost base and likely signals the early stages of a new AI-enabled product cycle. Spotify’s 2026 investor day helped address concerns around AI by reinforcing that AI could expand, rather than impair, the business model. Management highlighted a path to mid teens revenue growth through 2030, supported by new monetization opportunities, including AI music features, Audiobook+, and personal podcasts. The Universal Music Group partnership also provides a potential path to turn AI music into a paid feature. We believe Spotify’s scale, pricing power, and distribution advantage position it to convert AI-enabled products into higher revenue per user and long-term margin expansion.”
