Sustainable Growth Advisers (SGA), an investment management company, released its fourth-quarter investor letter for its “U.S. Large Cap Growth Strategy.” A copy of the letter can be downloaded here. In Q4 2025, the Portfolio returned 0.3% (Gross) and 0.2% (Net) compared to 1.1% return for the Russell 1000 Growth Index and 2.7% gain for the S&P 500 Index. Rising volatility, coupled with broadening market leadership, improved the portfolio’s relative performance in the second half of the quarter. In 2025, the Portfolio faced its most challenging years since the firm’s inception in 2003. After a challenging year, the firm is encouraged by the robust growth potential in its portfolio and its historically attractive relative valuation. Progressing further, the portfolio is well-positioned to gain from a shift away from high momentum dynamics in U.S. markets and a broadening of market leadership. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, SGA U.S. Large Cap Growth Strategy highlighted Salesforce, Inc. (NYSE:CRM) as a notable contributor. Salesforce, Inc. (NYSE:CRM) offers Customer Relationship Management (CRM) technology that brings companies and customers together. The one-month return for Salesforce, Inc. (NYSE:CRM) was -19.51%, and its shares lost 40.19% of their value over the last 52 weeks. On February 9, 2026, Salesforce, Inc. (NYSE:CRM) stock closed at $194.03 per share, with a market capitalization of $184.717 billion.
SGA U.S. Large Cap Growth Strategy stated the following regarding Salesforce, Inc. (NYSE:CRM) in its fourth quarter 2025 investor letter:
“Salesforce, Inc. (NYSE:CRM) was a top contributor during the quarter, as the company delivered solid quarterly results and demonstrated clear signs of growth stabilization and renewed momentum. Subscription revenue growth and current remaining performance obligation (cRPO) both exceeded guidance, while management is targeting revenue acceleration over the next 12-18 months, supported by increased competitiveness in the SMB segment and the expiration of pandemic-era shelfware deals. The company’s AI and Data Cloud offerings are gaining traction, with Agentforce annual recurring revenue growing by over 300% and Data Cloud annual recurring revenue more than doubling, demonstrating a measurable growth contribution from AI streams and deepening customer engagement. Salesforce’s broad suite of integrated front-office applications, trusted brand, and strong renewal rates continue to drive revenue growth, while disciplined capital allocation and aggressive share repurchases enhance shareholder returns. We believe Salesforce’s integration into customer business processes, large installed base, wide product set, and Slack engagement position it well to compete effectively in the Agentic AI era, supporting low-teens earnings growth over the next three years. During the quarter, we maintained an average weight and added to the position through the sale of other higher multiple software holdings.”
