The Ithaka Group 1Q26 Performance: Contributors And Detractors
Ithaka's portfolio underperformed the Russell 1000 Growth Index in Q1 2026, trailing by 570 basis points due largely to poor stock selection, particularly in the technology sector. Only 5 of 17 tech holdings outperformed the benchmark, with Microsoft and other major tech names weighing on returns. Howmet Aerospace and Netflix were notable contributors, supported by strong earnings and anticipated merger-related buybacks. Investor concerns over AI-related capital spending dampened performance in key growth stocks.
- ▪Ithaka's portfolio declined 15.5% in Q1 2026, underperforming the Russell 1000 Growth Index which fell 9.8%.
- ▪Stock selection detracted 540 basis points from relative performance, with technology being the weakest sector.
- ▪Howmet Aerospace rose after beating earnings expectations in February.
- ▪Netflix plans to use merger-related funds and a $2.8 billion breakup fee from Paramount for share buybacks.
- ▪Microsoft's stock lagged due to concerns over high AI infrastructure spending and uncertain near-term returns.
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