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, the Spyglass Growth Strategy highlighted Procore Technologies, Inc. (NYSE:PCOR), a technology company that detracted from the performance during the quarter. Procore Technologies, Inc. (NYSE:PCOR) provides a cloud-based construction management platform and related software products. On July 30, 2026, Procore Technologies, Inc. (NYSE:PCOR) closed at $53.79 per share. One-month return of Procore Technologies, Inc. (NYSE:PCOR) was 24.47%, and its shares lost 11.78% over the past 52 weeks. Procore Technologies, Inc. (NYSE:PCOR) has a market capitalization of $8.12 billion.
Spyglass Growth Strategy stated the following regarding Procore Technologies, Inc. (NYSE:PCOR) in its Q2 2026 investor update:
“Procore Technologies, Inc. (NYSE:PCOR), a provider of cloud-based construction management software, was a bottom contributor during the second quarter. Procore’s first-quarter results exceeded consensus expectations for both revenue and earnings. However, we believe Procore was also caught up in the broader selloff across the software sector, with investors seeming to want clear evidence of accelerating growth. As the new management team settles in, we continue to believe Procore’s underlying momentum remains intact, supported by a widening data moat and an emerging AI monetization opportunity.”
Procore Technologies, Inc. (NYSE:PCOR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 35 hedge fund portfolios held Procore Technologies, Inc. (NYSE:PCOR) at the end of the first quarter, compared to 45 in the previous quarter. Procore Technologies, Inc. (NYSE:PCOR) reported total revenue of $359 million in Q1 2026, marking an increase of 15.7% year-over-year. While we acknowledge the risk and potential of Procore Technologies, Inc. (NYSE:PCOR) 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 Procore Technologies, Inc. (NYSE:PCOR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Procore Technologies, Inc. (NYSE:PCOR) and shared Wasatch Small Cap Growth Strategy’s 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.
