Columbia Threadneedle Investments, an investment management company, released its “Columbia Seligman Global Technology Fund” second quarter 2026 investor letter. A copy of the letter can be downloaded here. During the quarter, the Fund’s Institutional Class shares returned 50.34%, outperforming the MSCI World Information Technology Index’s 33.65% gain. Stock selection in semiconductors, technology hardware and software, together with an off-benchmark electrical equipment allocation, supported relative performance, while exposure to financials, consumer discretionary and healthcare detracted. Technology stocks rallied as concerns over the Iran conflict eased and AI infrastructure spending boosted demand for semiconductors, memory, networking, servers and power solutions. The Fund expects AI and data-centre investment to remain strong, supported by broadening earnings growth and improving software bookings, cloud consumption and customer spending. However, geopolitical uncertainty, higher interest rates and heavy AI investment could pressure valuations and free cash flow. The strategy holds 50–75 technology companies across market capitalisations and uses bottom-up GARP research to identify misunderstood and undervalued businesses in the technology industry. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its second-quarter 2026 investor letter, Columbia Seligman Global Technology Fund highlighted Western Digital Corporation (NASDAQ:WDC). Western Digital Corporation (NASDAQ:WDC) develops, manufactures, and sells data storage devices and solutions based on hard disk drive (HDD) technology. On July 27, 2026, Western Digital Corporation (NASDAQ:WDC) closed at $497.92 per share. One-month return of Western Digital Corporation (NASDAQ:WDC) was -31.70% and its shares gained 517.82% over the past 52 weeks. Western Digital Corporation (NASDAQ:WDC) has a market capitalization of about $150.67 billion.
Columbia Seligman Global Technology Fund stated the following regarding Western Digital Corporation (NASDAQ:WDC) in its Q2 2026 investor letter:
“The position in Western Digital Corporation (NASDAQ:WDC) was a key contributor as the fund maintained an overweight allocation to the name, and the stock continued an outstanding six-quarter run with its share price more than doubling during the quarter. The rally in the stock was a continuation of demand for high-capacity hard drives and the expectation that tighter industry supply discipline should support better pricing and profitability.”
Western Digital Corporation (NASDAQ:WDC) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 83 hedge fund portfolios held Western Digital Corporation (NASDAQ:WDC) at the end of the first quarter which was 79 in the previous quarter. While we acknowledge the risk and potential of Western Digital Corporation (NASDAQ:WDC) 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 Western Digital Corporation (NASDAQ:WDC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Western Digital Corporation (NASDAQ:WDC) and shared Alger Capital Appreciation Fund’s insights 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.
