Lakehouse Capital, a Sydney-based investment manager, published its “Lakehouse Global Growth Fund” investor letter for April 2026. A copy of the letter can be downloaded here. In April, several portfolio companies reported earnings. Overall, updates were positive, indicating that the companies continue to execute on growth opportunities and show strong fundamentals. The fund returned -0.8% net of fees and expenses, whereas its benchmark, the MSCI All Country World Index Net Total Returns (AUD), returned 5.0%. The Fund has returned 119.9% since its inception compared to 159.3% for its benchmark. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its April 2026 investor letter, Lakehouse Global Growth Fund highlighted Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services, including online search and advertising, cloud solutions, and artificial intelligence. On July 8, 2026, Alphabet Inc. (NASDAQ:GOOG) closed at $358.71 per share. One-month return of Alphabet Inc. (NASDAQ:GOOG) was 0.60%, and its shares gained 100.73% over the past 52 weeks. Alphabet Inc. (NASDAQ:GOOG) has a market capitalization of $4.38 trillion.
Lakehouse Global Growth Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its April 2026 investor update:
“At the portfolio level, the biggest contributor to performance during the month was Alphabet Inc. (NASDAQ:GOOG) (+26.8%), which delivered a strong quarterly result that was well received by investors. Alphabet delivered a strong first-quarter result, with constant currency revenue and operating income growth accelerating to 19% and 30% respectively. Search re-accelerated on continued strength in the retail and financial services sectors, lifting volume growth to 13% while cost per click held broadly steady at 5%. AI Overviews continue to contribute to overall Search growth, and AI Mode is scaling rapidly, expanding the share of monetisable queries and reinforcing the view that Search is in an expansionary phase rather than facing cannibalisation.
Moving to Cloud, which was again a standout, with revenue accelerating to 63% as improved capacity availability enabled further conversion of backlog into revenue. Adoption of Gemini models remains strong and new customer acquisition doubled year-on-year, while capacity remains constrained, with backlog nearly doubling quarter-on-quarter to over $460 billion. The backlog also includes a new revenue stream through TPU hardware sales, with more meaningful revenue contributions expected from 2027. As the only hyperscaler with a fully integrated AI stack, we believe Alphabet is well placed to benefit from the AI tailwind, and with the sizeable backlog underpinning further investment in expanding capacity and continued growth ahead…” (Click here to read the full text)
Alphabet Inc. (NASDAQ:GOOG) ranks 7th on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 201 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the first quarter, compared to 203 in the previous quarter. In 2025, Alphabet Inc. (NASDAQ:GOOG) achieved its first-ever $400 billion annual revenue and in Q1 2026 its consolidated revenue reached $109.9 billion, up 22% or 19% in constant currency. While we acknowledge the risk and potential of Alphabet Inc. (NASDAQ:GOOG) 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 Alphabet Inc. (NASDAQ:GOOG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Alphabet Inc. (NASDAQ:GOOG) and shared the list of top stocks to buy according to Whale Rock Capital Management. In addition, please check out our hedge fund investor letters Q1 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.
