American Century Investments’ Focused Dynamic Growth Fund released its second-quarter 2026 investor letter, detailing fund performance and key holdings. The fund’s investor class returned 16.38% during the quarter, trailing slightly behind the Russell 1000 Growth Index’s 16.74% return. U.S. stocks advanced with double-digit quarterly gains driven by robust earnings, resilient economic data, and momentum in AI-related equities, though a pullback occurred in June as investors anticipated potential interest rate hikes by the Federal Reserve.
Arm Holdings plc, a UK-based semiconductor design company, was highlighted as a contributor to the fund’s performance during the quarter. The company closed at $264.23 per share on September 09, 2026, representing a 70.80% gain over the past 52 weeks, though shares declined 5.17% over the prior month. The firm maintains a market capitalization of $282.2 billion and develops and licenses central processing unit designs and related technologies for semiconductor companies and original equipment manufacturers.
The fund attributed Arm Holdings’ positive contribution to stronger artificial intelligence-driven data center and central processing unit demand, which supported an upbeat revenue outlook. According to the fund’s commentary, investor confidence in the company improved as its energy-efficient chip designs gained market traction in AI infrastructure, server, and CPU applications. During the second quarter, hedge fund ownership of Arm Holdings increased to 52 portfolios from 46 in the previous quarter, reflecting growing institutional interest in the company’s positioning within the AI infrastructure sector.
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