Sustainable Growth Advisers (SGA) released its Q3 investor letter for its U.S. Large Cap Growth Strategy, which returned -1.3% (Gross) and -1.4% (Net), trailing the Russell 1000 Growth Index (10.5%) and S&P 500 Index (8.1%). SGA aims to invest in high-quality growth businesses, but Q3 market leadership favored lower-quality stocks and cyclical industries.

Workday, Inc. (NASDAQ:WDAY) was highlighted in SGA’s Q3 letter, with a one-month return of -0.85% and a 52-week loss of 14.72%. On Dec 31, 2025, WDAY closed at $214.78 per share, with a market cap of $57.346 billion.

SGA announced liquidating its position in Workday, Inc. (NASDAQ:WDAY) due to competitive pressures and slower revenue growth expectations. Despite positive factors like margin expansion and AI product traction, SGA reallocated funds to companies with higher growth prospects.

Workday, Inc. (NASDAQ:WDAY) is not among the 30 Most Popular Stocks Among Hedge Funds, with 64 hedge fund portfolios holding it at the end of Q3. In Q3 2026, WDAY reported total revenue of $2.432 billion, a 13% YoY growth. While acknowledging WDAY’s potential, some AI stocks may offer greater upside potential and less downside risk.

Read more at Yahoo Finance: SGA U.S. Large Cap Growth Exited Its Position in Workday (WDAY)