Here’s Why Giverny Capital Asset Management Sold Align Technology (ALGN)

Core Insights - Giverny Capital Asset Management's portfolio returned 0.01% in Q4 2025, underperforming the S&P 500's 2.66% return, and YTD returns were 12.58% compared to the Index's 17.88% [1] - The firm faced challenges due to underweighting in large technology companies and overweighting in smaller niche leaders, despite strong earnings growth and capital returns from portfolio companies [1] - The market's focus on AI investments has overshadowed the actual benefits of portfolio companies, impacting overall performance [1] Company Insights - Align Technology, Inc. (NASDAQ:ALGN) was highlighted in Giverny Capital Asset Management's Q4 2025 investor letter, noting a one-month return of 5.18% but a 52-week loss of 25.10% [2] - As of January 29, 2026, Align Technology's stock closed at $164.12 per share, with a market capitalization of $11.896 billion [2] - The company is recognized for its innovative product, Invisalign clear aligners, which are expected to gradually replace traditional braces, potentially impacting the orthodontist profession [3]