Sands Capital, an investment management company, released its “Sands Capital Technology Innovators Fund” Q2 2026 investor letter. A copy of the letter can be downloaded here. In the quarter, global equities rebounded sharply, with the MSCI ACWI posting its strongest quarterly gain since 2020, supported by broad market strength, easing geopolitical tensions, and continued enthusiasm for AI infrastructure. Information technology led the advance, with semiconductor and hardware companies accounting for most of the index’s rise. The fund returned 26.9% (net) in the second quarter of 2026. The portfolio benefited from strong gains across memory, software infrastructure, cybersecurity, and other AI-related holdings, although its concentrated exposure to mega-cap chip designers and manufacturers weighed on relative performance as leadership broadened into CPUs, networking, and memory. Vertical software, internet, and financial holdings were modest detractors amid macro concerns and uncertainty over AI disruption. The fund remains focused on critical AI bottlenecks, including compute, memory, manufacturing, networking, and power, while retaining selected businesses that may use AI to strengthen their competitive positions. You can check the fund’s top five holdings to learn more about its leading investment ideas for the year.
In its second-quarter 2026 investor letter, Sands Capital Technology Innovators Fund highlighted Klaviyo, Inc. (NYSE:KVYO). Klaviyo, Inc. (NYSE:KVYO), a cloud-based software-as-a-service marketing platform, detracted from the Fund’s performance during the quarter. On August 7, 2026, Klaviyo, Inc. (NYSE:KVYO) closed at $16.62 per share. The one-month return of Klaviyo, Inc. (NYSE:KVYO) was -4.81%, and its shares lost 44.73% over the past 52 weeks. Klaviyo, Inc. (NYSE:KVYO) has a market capitalization of $4.73 billion.
Sands Capital Technology Innovators Fund stated the following regarding Klaviyo, Inc. (NYSE:KVYO) in its Q2 2026 investor letter:
“Klaviyo, Inc. (NYSE:KVYO) is an innovative provider of business-to-consumer (B2C) marketing technology. While the company delivered a headline beat and raise, expectations had moved higher into the print after a sharp rebound from April lows, and investors focused on a smaller revenue beat and a slightly lower second-quarter margin guide. The reaction also reflected broader pressure on software stocks, where investor sentiment remains fragile and near-term execution concerns have weighed on valuation multiples. In our view, the selloff was disproportionate to the underlying business performance. Klaviyo continues to deliver strong revenue growth, has limited exposure to seat-based revenue disruption, and should continue to expand margins over time. We maintain conviction, supported by Klaviyo’s opportunity to extend share gains, expand internationally and outside of ecommerce, and cross-sell its text-messaging and customer service platforms.”
Klaviyo, Inc. (NYSE:KVYO) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Klaviyo, Inc. (NYSE:KVYO) at the end of the first quarter which was 43 in the previous quarter. While we acknowledge the risk and potential of Klaviyo, Inc. (NYSE:KVYO) 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 Klaviyo, Inc. (NYSE:KVYO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Klaviyo, Inc. (NYSE:KVYO) and shared a list of undervalued software stocks to buy. 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.
