Overview
- Renaissance Investment Management reported that its Large Cap Growth Strategy underperformed the Russell 1000 Growth’s 10.5% return and the S&P 500’s 8.1% gain in the third quarter of 2025.
- AppLovin was the largest positive contributor, boosted by strong mobile gaming trends, momentum in its e‑commerce platform, and accelerating data accumulation supporting its AI models.
- Gartner was the biggest detractor as Contract Value growth moderated more than expected and investors questioned whether generative AI could erode the value of its proprietary research.
- Fiserv also detracted after the company lowered its full‑year organic growth and operating margin targets, prompting a share decline despite a strong management outlook for its merchant segment longer term.
- Portfolio changes included a new position in Tapestry in September to capitalize on Coach’s revitalization and European expansion potential, while a long‑held Cintas stake was sold following decelerating growth and peak margins.