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 Credo Technology Group Holding Ltd (NASDAQ:CRDO) as a notable performance contributor. Credo Technology Group Holding Ltd (NASDAQ:CRDO) is a semiconductor company that provides high-speed connectivity solutions for optical and electrical Ethernet and PCIe applications. On July 30, 2026, Credo Technology Group Holding Ltd (NASDAQ:CRDO) closed at $201.08 per share. One-month return of Credo Technology Group Holding Ltd (NASDAQ:CRDO) was -16.88%, and its shares gained 86.95% over the past 52 weeks. Credo Technology Group Holding Ltd (NASDAQ:CRDO) has a market capitalization of $33.09 billion.
Spyglass Growth Strategy stated the following regarding Credo Technology Group Holding Ltd (NASDAQ:CRDO) in its Q2 2026 investor update:
“Credo Technology Group Holding Ltd (NASDAQ:CRDO), a provider of high-speed electrical and optical connectivity solutions, was a top contributor during the second quarter. Credo reported first quarter results in June, exceeding consensus expectations for both revenue and earnings. The share price had been rallying since April, which we believe reflects a broader narrative re-rating by investors encouraged by the Company’s increasing optical product traction along with confidence in the duration of the opportunity that the Company’s current portfolio of copper product addresses. Although we trimmed our position size due to share price appreciation, Credo remains a core position, and we continue to believe that investor expectations underestimate the earnings power of the business.”
Credo Technology Group Holding Ltd (NASDAQ:CRDO) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 59 hedge fund portfolios held Credo Technology Group Holding Ltd (NASDAQ:CRDO) at the end of the first quarter, compared to 69 in the previous quarter. While we acknowledge the risk and potential of Credo Technology Group Holding Ltd (NASDAQ:CRDO) 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 Credo Technology Group Holding Ltd (NASDAQ:CRDO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Credo Technology Group Holding Ltd (NASDAQ:CRDO) and shared Deep Sail Capital Partners’ views on the company. 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.
