Bristol Gate Capital Partners, an investment management company, published its Q4 2025 investor letter for the “US Equity Strategy”. A copy of the letter can be downloaded here. The Strategy lagged the S&P 500 Total Return Index in the quarter in terms of returns, but outperformed in dividend growth. Despite debate over capital cycle returns, AI remained the dominant market theme, expanding from early adoption to broader enterprise adoption. The firm continues to focus on high-dividend-growth companies while maintaining discipline around valuation and earnings durability. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Bristol US Equity Strategy highlighted KLA Corporation (NASDAQ:KLAC) as a newly added position. KLA Corporation (NASDAQ:KLAC) is a global manufacturer and distributor of process control, process-enabling, and yield management solutions for the semiconductor and electronics industries. On July 21, 2026, KLA Corporation (NASDAQ:KLAC) closed at $217.56 per share, reflecting a market capitalization of $284.19 billion. KLA Corporation (NASDAQ:KLAC) posted a one-month return of -9.53%, while its shares gained 142.52% over the past 52 weeks.
Bristol US Equity Strategy stated the following regarding KLA Corporation (NASDAQ:KLAC) in its Q2 2026 investor update:
KLA Corporation (NASDAQ:KLAC) is a dominant provider of process-control and metrology equipment to the semiconductor industry, with a high market share that becomes more entrenched at each node transition. Metrology is the precision measurement and evaluation of nanoscale features; as chip-making and architecture grow more complex, the economic cost of yield loss rises sharply, which makes KLA’s tools effectively non-discretionary for leading-edge manufacturers. Those tailwinds, combined with prudent management, support strong dividend growth.
KLA Corporation (NASDAQ:KLAC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 71 hedge fund portfolios held KLA Corporation (NASDAQ:KLAC) at the end of the first quarter, up from 67 in the previous quarter. While we acknowledge the risk and potential of KLA Corporation (NASDAQ:KLAC) 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 KLA Corporation (NASDAQ:KLAC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered KLA Corporation (NASDAQ:KLAC) and shared the list of best NASDAQ 100 stocks to buy other than SpaceX. Vltava Fund sold its position in KLA Corporation (NASDAQ:KLAC) during Q2 2026, due to valuation concerns. 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.
