Emerald Wealth Partners, an independent asset and wealth management firm based in Zurich, released its Q1 2026 investor letter for the “Growth Equity Strategy.” A copy of the letter can be downloaded here. The first quarter proved challenging for investors. AI fears negatively impacted software and intermediary stocks. Later, geopolitical conflicts shifted focus toward energy and defense sectors. The strategy yielded a return of -9.2% gross and -9.4% net for the quarter. Semiconductor equipment holdings performed best, whereas software stocks were a significant drag. The letter also provided strategic insights into the impact of Artificial Intelligence on the software sector. Please review the Strategy’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, Emerald Wealth Partners Growth Equity Strategy highlighted ServiceNow, Inc. (NYSE:NOW). ServiceNow, Inc. (NYSE:NOW) is a cloud-based software company that provides a platform for automating and managing digital workflows. On June 30, 2026, ServiceNow, Inc. (NYSE:NOW) closed at $99.28 per share. One-month return of ServiceNow, Inc. (NYSE:NOW) was -12.69%, and its shares lost 49.03% over the past 52 weeks. ServiceNow, Inc. (NYSE:NOW) has a market capitalization of $102.38 billion.
Emerald Wealth Partners Growth Equity Strategy stated the following regarding ServiceNow, Inc. (NYSE:NOW) in its Q1 2026 investor letter:
“ServiceNow, Inc. (NYSE:NOW): The sharp drop in the stock in the January-February period has opened a rare opportunity to acquire more of this high-quality IT stock at a steep discount to fair value.
Various discussions with our experts and research partners have reinforced our view that ServiceNow is not only well protected from AI disruption, but well-positioned to benefit from the AI wave. Why? The ServiceNow platform is very broadly and deeply intertwined with enterprises’ IT systems and thus will enable the deployment of AI capabilities and act as a command center for AI agents at scale – a very favorable position to be in, in our view.
ServiceNow’s recent acquisitions (e.g., Moveworks, Armis) and the rollout of AI-driven features (Pro Plus, Now Assist, AI Control Tower) are seen as strategic moves to not only enhancing its AI capabilities, but also driving expansion into new verticals such as security, IoT, CRM, data orchestration and governance, opening further avenues for future growth.
As an additional benefit, the ServiceNow platform is becoming increasingly valuable to manage and protect against cyber risks, enabling end-to-end collaboration across tasks such as analyzing threat bulletins, assessing the attack surface, calculating risk posture, prioritizing threat response, and remediating exposure. Checks with our expert network covering IT security confirm the growing position of the company in that field.”
ServiceNow, Inc. (NYSE:NOW) ranks 25 on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 108 hedge fund portfolios held ServiceNow, Inc. (NYSE:NOW) at the end of the first quarter, compared to 118 in the previous quarter. In the first quarter of 2026, ServiceNow, Inc.’s (NYSE:NOW) subscription revenues increased 19% year-over-year to $3.67 billion. While we acknowledge the risk and potential of ServiceNow, Inc. (NYSE:NOW) 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 ServiceNow, Inc. (NYSE:NOW) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered ServiceNow, Inc. (NYSE:NOW) and shared the list of best trending AI stocks to watch in 2026. 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.
