Impax Cites Q3 Lag as Alphabet’s AI-Fueled Quarter Lifts Shares

Impax remains underweight the stock, pointing to a risk-on market for the fund’s Q3 shortfall.

Overview

Impax’s US Sustainable Economy Fund returned 7.33% in Q3 2025 versus 7.99% for the Russell 1000.
The firm attributes the gap to a market phase that favored high-risk, high-momentum and lower-quality factors over its lower-risk, high-quality tilt.
Alphabet, an underweight in the portfolio, delivered one of its strongest quarterly gains in nearly two decades with mid-teens revenue growth and robust cloud demand backed by significant backlogs.
Impax says court rulings that rejected the harshest DOJ remedies supported Alphabet’s shares as the company posted its first-ever $100 billion revenue quarter.
As of January 6, 2026, Alphabet closed at $314.55 with a 52-week gain of 60.99% and appeared in 186 hedge fund portfolios, up from 178 in the prior quarter.