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 NCino, Inc. (NASDAQ:NCNO). NCino, Inc. (NASDAQ:NCNO) is a software-as-a-service company that provides software solutions to financial institutions. On July 30, 2026, NCino, Inc. (NASDAQ:NCNO) closed at $18.38 per share, reflecting a market capitalization of $2.06 billion. NCino, Inc. (NASDAQ:NCNO) posted a one-month return of 3.55%, while its shares lost 32.30% over the past 52 weeks.
Spyglass Growth Strategy stated the following regarding NCino, Inc. (NASDAQ:NCNO) in its Q2 2026 investor update:
“NCino, Inc. (NASDAQ:NCNO), a global financial technology company, was sold during the second quarter. Since our original entry point in the second quarter of 2025, we believe the risk/reward opportunity has become less compelling, especially compared to other names in our universe. As a result, we decided to exit our position to reallocate capital.”
NCino, Inc. (NASDAQ:NCNO) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 40 hedge fund portfolios held NCino, Inc. (NASDAQ:NCNO) at the end of the first quarter, compared to 47 in the previous quarter. In Q1 2026, NCino, Inc.’s (NASDAQ:NCNO) total revenues were $159.4 million, an increase of 11% year over year. While we acknowledge the risk and potential of NCino, Inc. (NASDAQ:NCNO) 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 NCino, Inc. (NASDAQ:NCNO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered NCino, Inc. (NASDAQ:NCNO) and shared the list of cheap small cap 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.
