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.
In its Q2 2026 investor letter, Spyglass Growth Strategy highlighted HubSpot, Inc. (NYSE:HUBS), noting that the software company detracted from the performance during the quarter. HubSpot, Inc. (NYSE:HUBS) provides a cloud-based customer relationship management (CRM) platform for businesses. On July 30, 2026, HubSpot, Inc. (NYSE:HUBS) closed at $233.10 per share, reflecting a market capitalization of $11.93 billion. HubSpot, Inc. (NYSE:HUBS) posted a one-month return of 21.33%, while its shares lost 53.24% over the past 52 weeks.
Spyglass Growth Strategy stated the following regarding HubSpot, Inc. (NYSE:HUBS) in its Q2 2026 investor update:
“HubSpot, Inc. (NYSE:HUBS), a provider of front-office software to the small and medium-sized business (SMB) market, was a bottom contributor during the second quarter. Despite exceeding consensus revenue and earnings expectations, the share price declined amid broader pessimism around the software sector due to the perceived threat of AI. However, our research gives us confidence that by integrating tools like AI agents into its products, HubSpot will ultimately prove to be a net beneficiary of AI, by offering a superior value proposition to its customers.”
HubSpot, Inc. (NYSE:HUBS) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 46 hedge fund portfolios held HubSpot, Inc. (NYSE:HUBS) at the end of the first quarter, compared to 56 in the previous quarter. While we acknowledge the risk and potential of HubSpot, Inc. (NYSE:HUBS) 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 HubSpot, Inc. (NYSE:HUBS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered HubSpot, Inc. (NYSE:HUBS) and shared TimesSquare Capital Management’s insights on the company in the previous quarter. 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.
