Here’s Why SGA U.S. Large Cap Growth Strategy Sold Novo Nordisk (NVO)
Sustainable Growth Advisers (SGA), an investment management company, released its third-quarter investor letter for its “U.S. Large Cap Growth Strategy.” A copy of the letter can be downloaded here. The portfolio returned -1.3% (Gross) and -1.4% (Net) in the third quarter, compared to a 10.5% return for the Russell 1000 Growth Index and an 8.1% return for the S&P 500 Index. SGA’s investment objective is to invest in high-quality growth businesses expected to achieve consistent mid-teens earnings growth, accompanied by stable revenue and cash flow. However, in Q3, the market leadership was adverse for SGA’s investment style as lower-quality stocks and cyclical industries outperformed. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, the SGA U.S. Large Cap Growth Strategy highlighted stocks such as Novo Nordisk A/S (NYSE:NVO). Novo Nordisk A/S (NYSE:NVO) engages in the research and development, manufacture, and distribution of pharmaceutical products. The one-month return of Novo Nordisk A/S (NYSE:NVO) was 6.02%, and its shares lost 41.86% of their value over the last 52 weeks. On December 31, 2025, Novo Nordisk A/S (NYSE:NVO) stock closed at $50.88 per share, with a market capitalization of $226.084 billion.
SGA U.S. Large Cap Growth Strategy stated the following regarding Novo Nordisk A/S (NYSE:NVO) in its third quarter 2025 investor letter:
"In July, we liquidated our position in Novo Nordisk A/S (NYSE:NVO) and initiated a position in Nike. We sold Novo Nordisk out of the portfolio due to two concerns that made us question the company’s ability to deliver long-term growth.
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