“Not every AI company will be successful and we are seeing some valuations, especially in the private market that require immaculate execution over the next multiple years to justify. From our perspective, it is essential that we lean on our investment philosophy to understand which names are truly differentiated and continue to evaluate the risks and opportunities of this technology on non-AI-native businesses.”
Each quarter, Chris Armbruster, CFA Portfolio Manager and Senior Research Analyst, provides an update on the performance of the Large Cap Growth strategy and shares his market outlook. Listen to his most recent episode where Chris recaps market activity during 3Q 2026.
Key Insights and Trends
- AI investment remained a significant driver of economic growth during the quarter, while geopolitical tensions, trade uncertainty, higher interest rates and persistent inflation created countervailing pressures
- As AI adoption evolves from infrastructure and communications toward applications, we continue to evaluate where differentiated businesses may emerge across different layers of the technology ecosystem
- The strategy’s positioning has evolved alongside the shift from incremental to exponential growth, with a disciplined approach to identifying differentiated businesses across the expanding AI opportunity set
- Primary contributors and detractors to the Large Cap Growth strategy
Stay Informed with Our Latest Insights
For more insights, read our 3Q 2026 Market Review Commentary or subscribe to Kaynecast where we provide the latest updates from the KAR Investment Team on our investment strategies.
Kaynecast is available on Apple Podcasts and Spotify.
