Sands Capital Management, LLC released its Q1 2026 investor letter for its “Select Growth Strategy”. A copy of the letter is available to download here. Select Growth mainly targets leading U.S. businesses, driving positive structural changes. U.S. large-cap growth stocks fell in the first quarter. Sharp dispersion driven by AI advances marked the quarter, but late in the quarter, geopolitical tensions with Iran caused a broad-based risk-off move across the market. AI continued to influence market behavior, with AI-related investments increasing dispersion and shifting capital to asset-heavy sectors benefiting from AI infrastructure demand, which faced less disruption risk. While equities struggled, corporate fundamentals remained strong. Select Growth underperformed the Russell 1000 Growth Index, returning -12.9% vs. -9.8%, due to concerns about AI disruption affecting sector and stock choices. The Strategy’s focus on higher-growth, asset-light, service businesses faced challenges as markets rotated toward more capital-intensive, lower-risk sectors. Underweights in cyclical and defensive sectors slightly hurt relative results amid the broader market shift. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Sands Capital Select Growth Strategy highlighted Carpenter Technology Corporation (NYSE:CRS) as one of its leading contributors. Carpenter Technology Corporation (NYSE:CRS) manufactures specialty metals for a diversified set of industries. On June 8, 2026, Carpenter Technology Corporation (NYSE:CRS) closed at $499.09 per share. One-month return of Carpenter Technology Corporation (NYSE:CRS) was 21.97%, and its shares gained 110.61% over the past 52 weeks. Carpenter Technology Corporation (NYSE:CRS) has a market capitalization of $24.79 billion.
Sands Capital Select Growth Strategy stated the following regarding Carpenter Technology Corporation (NYSE:CRS) in its Q1 2026 investor letter:
“Carpenter Technology Corporation (NYSE:CRS) is a leading supplier of specialty nickel alloys for the aerospace industry. Shares rose amid broader strength in industrials and a clearer pricing outlook. Fourth-quarter results were strong, with earnings per share increasing 41 percent year over year, supported by a 23 percent increase in aerospace orders, reinforcing our investment thesis. Pricing momentum and a more constructive supply backdrop were key drivers. Carpenter announced three new contracts with pricing increases of more than 30 percent, signaling customer acceptance of higher prices. A competitor also added less nickel capacity than expected, which should help sustain near-term pricing power. We believe tightening capacity and improving demand across aerospace, defense, gas turbines, and space support a favorable pricing environment, positioning Carpenter to benefit from a multiyear period of stronger pricing and demand.”
Carpenter Technology Corporation (NYSE:CRS) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 74 hedge fund portfolios held Carpenter Technology Corporation (NYSE:CRS) at the end of the first quarter, up from 71 in the previous quarter. While we acknowledge the risk and potential of Carpenter Technology Corporation (NYSE:CRS) 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 Carpenter Technology Corporation (NYSE:CRS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Carpenter Technology Corporation (NYSE:CRS) and shared the list of best 3D printing stocks to buy for aerospace components. 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.
