The Virtus SGA U.S. Large Cap Growth portfolio posted a gross return of -11.1 percent for the first quarter of 2026. The result trailed both the Russell 1000 Growth Index and the S&P 500 Index.
The portfolio underperformed amid diverging results between immediate beneficiaries of artificial intelligence and stocks viewed as laggards in that area. Software holdings declined sharply, falling about 25 percent year to date after new product releases from Anthropic raised concerns over existing business models. Arm Holdings emerged as a top contributor after reporting stronger than expected revenue and royalty growth in its fiscal third quarter, supported by rising data center demand. The fund added a position in Mastercard on share price weakness and sold holdings in Gartner and UnitedHealth over concerns about fundamentals and strategy. The portfolio is projected to deliver 13 percent revenue growth and 19 percent earnings growth annually over the next three years, in line with internal estimates.