Sustainable Growth Advisers (SGA), an investment management company, released its third-quarter investor letter for its “U.S. Large Cap Growth Strategy.” A copy of the letter can be downloaded here. The portfolio returned -1.3% (Gross) and -1.4% (Net) in the third quarter, compared to a 10.5% return for the Russell 1000 Growth Index and an 8.1% return for the S&P 500 Index. SGA’s investment objective is to invest in high-quality growth businesses expected to achieve consistent mid-teens earnings growth, accompanied by stable revenue and cash flow. However, in Q3, the market leadership was adverse for SGA’s investment style as lower-quality stocks and cyclical industries outperformed. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, the SGA U.S. Large Cap Growth Strategy highlighted stocks such as Intuit Inc. (NASDAQ:INTU). Intuit Inc. (NASDAQ:INTU) offers financial management, payments and capital, compliance products, and services. The one-month return for Intuit Inc. (NASDAQ:INTU) was -0.10%, and its shares gained 6.36% over the last 52 weeks. On December 31, 2025, Intuit Inc. (NASDAQ:INTU) stock closed at $662.42 per share, with a market capitalization of $184.418 billion.
SGA U.S. Large Cap Growth Strategy stated the following regarding Intuit Inc. (NASDAQ:INTU) in its third quarter 2025 investor letter:
“Intuit Inc. (NASDAQ:INTU) was a detractor from performance during the quarter as cautious guidance for FY 2026 led to investor disappointment, despite strong fiscal-year (July) results. The company finished the year with solid 15% revenue growth and higher operating profit growth, but the 12-13% revenue guidance (and higher operating profit growth) for next year was lighter than expected by investors, although in line with our internal estimates as well as in keeping with management’s usual conservatism. The timing of large prepayments and restructuring outlays weighed on operating cash flow, while macroeconomic challenges in the U.S. continued to fuel uncertainty around the sustainability of momentum in the QuickBooks segment and the recovery in Credit Karma. Despite these headwinds, management reiterated long-term growth targets and highlighted resilience in most of the business, with MailChimp expected to return to double-digit growth by fiscal year-end. Intuit remains a compelling long-term investment due to its strong brand, high user retention, and leadership in core markets, with early investments in data aggregation and GenAI expected to further strengthen its competitive advantages. We maintained an above-average weight position, trimming it on strength early in the quarter and later taking the opportunity to add on weakness.”
Intuit Inc (NASDAQ:INTU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 96 hedge fund portfolios held Intuit Inc. (NASDAQ:INTU) at the end of the third quarter, which was 105 in the previous quarter. In the first quarter of fiscal 2026, Intuit Inc. (NASDAQ:INTU) reported revenue of $3.9 billion, representing an increase of 18% year-over-year. While we acknowledge the risk and potential of Intuit Inc. (NASDAQ:INTU) 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 Intuit Inc. (NASDAQ:INTU) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Intuit Inc. (NASDAQ:INTU) and shared Bristol Gate US Equity Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 2025 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.
