Spyglass Capital Management LLC, an investment management firm, released its second-quarter investor letter for “Spyglass Growth Strategy”. A copy of the letter can be downloaded here. Spyglass Growth Strategy appreciated 24.63% in the second quarter, significantly outperforming the Bloomberg Midcap Growth Index’s 14.05% increase, the Bloomberg 2500 Growth Index’s 19.01% gain, and the Bloomberg 500 Index’s 15.61% return for the same period. The Strategy’s performance in Q2 was a reversal from Q2 driven by easing geopolitical tensions, notably a US-Iran ceasefire, declining oil prices, and a rebound in software stocks after early-year volatility. Small caps and growth stocks outperformed, with Technology, Industrials, and Financials leading sectors. The portfolio’s earnings growth remains above 40%, while current valuations do not yet reflect this performance. Despite recent portfolio success—85% of companies exceeding revenue estimates—the overall portfolio faces multiple compression with a slight negative year-to-date return. However, the firm remains confident that fundamentals will prevail over volatility, emphasizing that the market’s short-term inefficiencies may present opportunities for value extraction. In addition, please check the Firm’s top five holdings to know its best picks in 2026.
Spyglass Growth Strategy’s Q2 2026 investor letter noted Affirm Holdings, Inc. (NASDAQ:AFRM) as a contributor to performance. Affirm Holdings, Inc. (NASDAQ:AFRM), a leading financial technology company, provides point-of-sale payment solutions for consumers, commerce solutions for merchants, and a consumer-focused app. On July 30, 2026, Affirm Holdings, Inc. (NASDAQ:AFRM) closed at $73.25 per share, reflecting a market capitalization of $24.53 billion. Affirm Holdings, Inc. (NASDAQ:AFRM) posted a one-month return of -13.40%, while its shares gained 10.30% over the past 52 weeks.
Spyglass Growth Strategy stated the following regarding Affirm Holdings, Inc. (NASDAQ:AFRM) in its Q2 2026 investor update:
“Affirm Holdings, Inc. (NASDAQ:AFRM), a financial technology company, was a top contributor during the second quarter. Affirm reported quarterly results in May that exceeded consensus expectations for both revenue and earnings. Notably, we were pleased to see Affirm Card gross merchandise volume grow 146% year-over-year to $2.13 billion and active cardholders increase 130% year over-year to 4.4 million. After a difficult start to the year for the stock, which we believe was driven by geopolitical risks and fears around the potential for a weakening consumer given the crosscurrents in the US economy, sentiment appears to have recovered following the US-Iran ceasefire and a more stable macroeconomic outlook. We were also pleased with the management team’s growth outlook and profitability framework which was articulated at the Company’s investor forum in May. Affirm remains a significant position for the portfolio.”
Affirm Holdings, Inc. (NASDAQ:AFRM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 61 hedge fund portfolios held Affirm Holdings, Inc. (NASDAQ:AFRM) at the end of the first quarter, compared to 63 in the previous quarter. While we acknowledge the risk and potential of Affirm Holdings, Inc. (NASDAQ:AFRM) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Affirm Holdings, Inc. (NASDAQ:AFRM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Affirm Holdings, Inc. (NASDAQ:AFRM) and shared the list of top AI other stocks Jim Cramer got right in 2026. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
