Core Insights - Renaissance Investment Management's Q3 2025 "Large Cap Growth Strategy" underperformed compared to the Russell 1000 Growth and S&P 500 despite overall stock market gains [1] - Gartner, Inc. (NYSE:IT) was identified as the largest detractor from the portfolio performance in Q3 2025, with significant declines in its stock value over the past year [2][3] Performance Summary - The S&P 500 reached all-time highs in September, with a quarterly return of 8.1%, while the Russell 1000 Growth returned 10.5% [1] - Gartner, Inc. experienced a one-month return of -2.77% and a 52-week decline of 50.68%, closing at $255.58 per share with a market capitalization of $19.357 billion on October 27, 2025 [2] Company Analysis - Gartner, Inc. reported Q3 results that exceeded expectations, but its Contract Value (CV) revenue growth moderated more than anticipated due to a challenging sales environment influenced by tariffs and federal government expenditure delays [3] - Concerns are rising regarding the impact of Generative AI on Gartner's proprietary technology research and its potential to disintermediate the company's value [3] Hedge Fund Interest - Gartner, Inc. was held by 45 hedge fund portfolios at the end of Q2 2025, a decrease from 51 in the previous quarter, indicating a decline in popularity among hedge funds [4]

Group 1 - Conestoga Capital Advisors reported that equity markets reached new all-time highs in Q3 2025, but their Mid Cap Composite returned -3.2% net-of-fees, underperforming the Russell Midcap Growth Index which gained 2.8% [1] - The focus on high-quality, profitable companies by Conestoga struggled to keep pace with the risk-on market environment during the quarter [1] - Gartner, Inc. (NYSE:IT) was highlighted as a key stock, with a one-month return of 0.07% and a significant decline of 50.71% over the last 52 weeks, closing at $258.17 per share with a market capitalization of $19.553 billion on October 21, 2025 [2] Group 2 - Gartner, Inc. is recognized as a leading research and advisory firm, but its shares have lagged due to weak contract value for IT research services and concerns about its business model being threatened by AI deep research tools [3] - The number of hedge funds holding Gartner, Inc. decreased from 51 to 45 in the second quarter, indicating a decline in popularity among institutional investors [4] - While Gartner, Inc. is acknowledged for its investment potential, certain AI stocks are viewed as having greater upside potential and less downside risk [4]

Company Overview - Gartner, Inc. has a market cap of $17.9 billion and is a leading global research and advisory company providing insights and tools for business leaders across various sectors including IT, marketing, supply chain, finance, and human resources [1] Earnings Expectations - Analysts anticipate Gartner to report a fiscal Q3 profit of $2.41 per share, reflecting a decrease of 3.6% from $2.50 per share in the same quarter last year [2] - For fiscal 2025, the expected EPS is $12.19, down 13.5% year over year from $14.09 in fiscal 2024, but is projected to increase by 8.5% annually to $13.23 in FY2026 [3] Stock Performance - Gartner's stock has declined by 54.9% over the past 52 weeks, significantly underperforming the Technology Select Sector SPDR Fund's 24.8% increase and the S&P 500 Index's 14.8% rise during the same period [4] Analyst Ratings - Following a "Hold" rating from UBS analyst Joshua Chan, Gartner's shares dropped by 4.4% on October 7, with a price target set at $280, indicating cautious sentiment despite the company's strong market position [5] - Overall, Wall Street analysts maintain a "Moderate Buy" rating for Gartner, with 14 analysts covering the stock: five recommend "Strong Buy," eight suggest "Hold," and one advises "Strong Sell." The average analyst price target of $300.09 suggests a potential upside of 25.3% from current levels [6]

Core Insights - Forrester announced the winners of its 2025 Technology Awards for North America, recognizing the United States Department of the Navy, Takeda Pharmaceuticals, and Bank of America for their innovative technology strategies that drive business growth [1][2]. Group 1: Technology Strategy Impact Award - The United States Department of the Navy was awarded for its strategic alignment in deploying secure technologies, shifting from compliance-driven IT to mission-focused outcomes, and reducing delivery cycles from months to weeks through initiatives like the Innovation Adoption Kit and generative AI assistant DON GPT [3]. - Finalists for this award included CBRE and Verizon, highlighting the competitive landscape in technology strategy [3]. Group 2: Enterprise Architecture Award - Takeda Pharmaceuticals received recognition for its innovative Business Architecture Framework (BAF), which integrates various methodologies to drive transformation across its global operations, enhancing real-time governance and alignment with business strategy [4]. - The award also acknowledged Takeda's launch of an enterprise GenAI hub and the deployment of over 60 generative AI solutions, showcasing its commitment to digital transformation [4][5]. Group 3: Data & AI Impact Award - Bank of America was honored for its enterprise-wide AI strategy, which includes the in-house developed AI assistant Erica, achieving a 50% reduction in IT service desk calls and 90% internal adoption [6]. - The bank holds over 1,500 AI and machine learning patents, demonstrating its leadership in innovation and responsible AI practices [6]. Group 4: Event Information - The award recipients will share their success stories at the Technology & Innovation Summit North America, scheduled for November 2–5, 2025, in Austin, Texas [7].

Core Insights - Polen Capital's "Polen Focus Growth Strategy" reported a 3.34% gross return and 3.14% net return in Q3 2025, underperforming the Russell 1000 Growth Index (10.51%) and the S&P 500 Index (8.12%) [1] Company Analysis - Gartner, Inc. (NYSE:IT) was highlighted in the investor letter, with a one-month return of -2.20% and a 52-week loss of 53.71%, closing at $245.36 per share with a market capitalization of $18.583 billion on October 13, 2025 [2] - Polen Capital exited its position in Gartner, Inc. after over 12 years, achieving a 17.5% annualized return with earnings and share price growing about 7.5 times, driven by a subscription-based research business [3] - Despite management's target of 10% revenue growth, Gartner's actual growth has slowed to mid-to-high single digits, leading to concerns about its ability to generate sufficient EPS growth for attractive returns [3] Market Sentiment - Gartner, Inc. is not among the 30 most popular stocks among hedge funds, with 45 hedge fund portfolios holding the stock at the end of Q2 2025, down from 51 in the previous quarter [4] - There is a belief that certain AI stocks present greater upside potential and carry less downside risk compared to Gartner, Inc. [4]

Core Viewpoint - Edelson Lechtzin LLP is investigating potential violations of federal securities laws involving Gartner, Inc. due to allegations of misleading business information provided to investors [1][3]. Company Overview - Gartner, Inc. is a research and advisory firm that offers insights, consulting, and business tools to assist companies in making informed decisions in the technology and IT sectors [2]. Allegations and Financial Impact - On August 5, 2025, Gartner reported a slowdown in its contract growth rate, leading to a decrease in its annual revenue forecast from $6.54 billion to $6.46 billion [3]. - The management attributed this downward adjustment to cost-cutting measures implemented to mitigate potential tariff risks [3]. Stock Market Reaction - Following the announcement of the revenue forecast adjustment, Gartner's stock price fell by $92.78 per share, or 27.55%, closing at $243.93 per share on August 5, 2025 [4].

Forrester's Business Overview - Forrester is a research and advisory firm that helps businesses accelerate growth through customer obsession[4] - The company has a global reach with operations in Asia Pacific, Europe, and North America, employing approximately 1,500 people[5] - 61% of Fortune 100 companies are Forrester's clients[5] Financial Performance and Strategy - In 2024, approximately 73% of Forrester's total revenue came from Research, while approximately 27% came from Consulting and Events[5] - Forrester Decisions accounted for approximately 80% of the company's contract value in 2024[5] - Forrester's adjusted EBITDA for 2024 was $46.1 million[5] - Forrester estimates the total available research market opportunity to be $78 billion, growing to $115 billion[9] Q2 2025 Financial Results - Consolidated revenue for Q2 2025 was $111.7 million, a decrease of 8% compared to the previous year[57] - Research revenue for Q2 2025 was $77.9 million, a decrease of 7% compared to the previous year[57] - Adjusted EPS for Q2 2025 was $0.51, a decrease of 25% compared to the previous year[57] - Forrester's CV(Contract Value) in Q2 2025 was $288.7 million[62]