Overview
- RGA published its Q2 2026 investor letter on Aug. 24–25 and said it is repositioning after outsized gains concentrated in an 'AI Bottleneck 40,' a set of data‑center and AI‑infrastructure stocks that have diverged from the S&P and shown realized volatility near 60%.
- The firm disclosed a new stake in GitLab and cited valuation measures — roughly sub‑4x EV/sales, about 20x EV/EBITDA and a free‑cash‑flow yield above 5% — while warning that GitLab’s legacy per‑seat pricing could be hurt if AI reduces technical headcount before consumption revenues scale.
- RGA argued that Adobe is more resilient than some expect and presented concrete metrics — P/E below 10 and FCF yield north of 10% — as reasons it views the stock as attractively priced to serve as a platform for AI workflows.
- On Roku, RGA reviewed the June 15 Fox Corp deal that will pay $96 cash plus 0.9693 FOXA shares per Roku share and said it will likely hold the FOXA stock after the transaction closes, citing expected revenue synergies between the assets.
- The letter included quarter‑end hedge‑fund holding counts for key names (for example, about 50 funds held GitLab and about 81 held Adobe) and framed a broader industry shift where managers are taking profits from crowded winners, adding select durable names, and watching second‑order risks to SaaS revenue models and hardware margins.