Conventum – Alluvium Global Fund released its second-quarter 2026 investor letter, detailing portfolio performance across various market conditions. The fund declined in value across multiple currencies, with results varying significantly by holding. The broader market environment shifted from geopolitical uncertainty and oil market volatility toward a strong equity rally driven primarily by semiconductor companies.
Alphabet emerged as the fund’s strongest performer during the quarter, gaining 24.4%. The company’s financial results exceeded expectations, with revenue growth reaching 22%. The fund managers noted that Alphabet’s strong performance was driven in part by growth in its cloud business division. As of September 15, Alphabet closed at $341.43 per share, representing a market capitalization of $4.2 trillion and reflecting gains of 36.65% over the preceding 52 weeks.
Despite the positive financial performance, fund managers expressed some concern about the company’s capital allocation strategy. Alphabet increased its capital expenditure budget to $190 billion and indicated expectations for further increases in subsequent periods. The fund characterized this trajectory as “somewhat worrying,” suggesting management views the elevated spending as necessary to meet demand that the company struggles to fulfill with existing capacity.
Other portfolio holdings contributed mixed results to the fund’s overall performance. Robert Half and H&R Block posted solid gains alongside Alphabet, while cable businesses and several healthcare and consumer holdings detracted from returns. At the end of the second quarter, 195 hedge fund portfolios held Alphabet shares, down from 201 in the prior quarter, indicating a slight reduction in institutional holdings despite the stock’s strong performance.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI