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 SAP SE (NYSE:SAP). Headquartered in Walldorf, Germany, SAP SE (NYSE:SAP) is a leading enterprise application and business solutions provider. On June 30, 2026, SAP SE (NYSE:SAP) closed at $154.11 per share. One-month return of SAP SE (NYSE:SAP) was -14.70%, and its shares lost 48.31% over the past 52 weeks. SAP SE (NYSE:SAP) has a market capitalization of $181.69 billion.
Emerald Wealth Partners Growth Equity Strategy stated the following regarding SAP SE (NYSE:SAP) in its Q1 2026 investor letter:
“SAP SE (NYSE:SAP): Rather than being disrupted by AI, as the market has been suggesting lately, we believe SAP is very well positioned to benefit from it. The mission critical nature of the software, the deep integration with customers’ IT systems and comprehensive suite of products will allow SAP to naturally embed AI agents, both horizontally — through SAP Business AI and the Joule copilot — and vertically within each product across planning, execution, and network function.
Beyond the long-term tailwind from AI, SAP will benefit in the coming years from a set of structural growth drivers that are specific to the company’s businesses: The catch up in cloud-based products, the ongoing migration wave to the S/4data base and strong growth in Supply Chain Management (SCM)…” (Click here to read the full text)
SAP SE (NYSE:SAP) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 33 hedge fund portfolios held SAP SE (NYSE:SAP) at the end of the first quarter, compared to 36 in the previous quarter. While we acknowledge the risk and potential of SAP SE (NYSE:SAP) 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 SAP SE (NYSE:SAP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered SAP SE (NYSE:SAP) and shared Aoris Investment Management’s views on the company. 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.
