Factors Behind SGA U.S. Large Cap Growth Strategy’s New Addition: Nike (NKE)

3 hours ago 1

Soumya Eswaran

Fri, January 2, 2026 astatine 6:24 AM CST 4 min read

Sustainable Growth Advisers (SGA), an concern absorption company, released its third-quarter capitalist missive for its “U.S. Large Cap Growth Strategy.” A transcript of the missive tin beryllium downloaded here. The portfolio returned -1.3% (Gross) and -1.4% (Net) successful the 3rd quarter, compared to a 10.5% instrumentality for the Russell 1000 Growth Index and an 8.1% instrumentality for the S&P 500 Index. SGA’s concern nonsubjective is to put successful high-quality maturation businesses expected to execute accordant mid-teens net growth, accompanied by unchangeable gross and currency flow. However, successful Q3, the marketplace enactment was adverse for SGA’s concern benignant arsenic lower-quality stocks and cyclical industries outperformed. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its third-quarter 2025 capitalist letter, the SGA U.S. Large Cap Growth Strategy highlighted stocks specified arsenic NIKE, Inc. (NYSE:NKE). NIKE, Inc. (NYSE:NKE) is simply a sportswear institution that designs and distributes diversion and casual footwear, apparel, equipment, accessories, and services. The one-month instrumentality of NIKE, Inc. (NYSE:NKE) was -3.01%, and its shares mislaid 13.52% of their worth implicit the past 52 weeks. On December 31, 2025, NIKE, Inc. (NYSE:NKE) banal closed astatine $63.71 per share, with a marketplace capitalization of $94.176 billion.

SGA U.S. Large Cap Growth Strategy stated the pursuing regarding NIKE, Inc. (NYSE:NKE) successful its 3rd 4th 2025 capitalist letter:

"NIKE, Inc. (NYSE:NKE) is an iconic sportswear marque that has built its concern astir promoting a healthier lifestyle, offering products that harvester performance, utility, and durability, each driven by exertion and innovation. Nike’s cogwheel has go a staple not lone for athletes but besides for casual wearers, propelled by innovation and beardown execution successful selling and proviso concatenation management. The company’s pricing powerfulness is anchored successful its marque spot and technology, supported by a robust proviso concatenation and organisation network. Competitors person little margins, truthful immoderate terms warfare would interaction them much than Nike. Repeatable revenues are driven by the quality of sportswear, which wears retired implicit clip and leads to repetition purchases, with 65% of income coming from shoes, a class known for lawsuit loyalty and stickiness. Nike’s gross successful developed markets is increasing astatine mid-single-digit rates, portion the remainder of the satellite is increasing adjacent faster, fueled by expanding sports information globally, rising sports walk per capita, greater e-commerce sales, and deeper penetration into emerging markets.