Group 1 - SGA's U.S. Large Cap Growth Strategy reported a portfolio return of -1.3% (Gross) and -1.4% (Net) in Q3, underperforming the Russell 1000 Growth Index which returned 10.5% and the S&P 500 Index which returned 8.1% [1] - The investment objective of SGA is to focus on high-quality growth businesses expected to achieve consistent mid-teens earnings growth, stable revenue, and cash flow [1] - In Q3, lower-quality stocks and cyclical industries outperformed, adversely affecting SGA's investment style [1] Group 2 - Gartner, Inc. (NYSE:IT) was highlighted in SGA's third-quarter investor letter, with a one-month return of 8.69% and a 52-week loss of 47.80% [2] - As of December 31, 2025, Gartner, Inc. had a stock price of $252.28 and a market capitalization of $19.107 billion [2] - Gartner's contract value growth slowed to 5% from 7% in Q1, leading to a reduction in revenue growth guidance for the year [3] - The slowdown in growth was attributed to the impact of DOGE on U.S. federal government customers and tariff uncertainties affecting decision-making and budget pressures [3] - A new market narrative suggested that Gartner's value proposition could be disrupted by generative AI, further impacting its stock performance [3]

Core Insights - TCW Concentrated Large Cap Growth Fund reported a return of +4.11% in Q3 2025, underperforming the Russell 1000 Growth Index which returned +10.51% [1] Company Overview - Gartner, Inc. (NYSE:IT) is a research and advisory company established in 1979, operating through research, conferences, and consulting segments [2] - As of December 24, 2025, Gartner's stock closed at $251.18 per share, with a market capitalization of $19.023 billion [2] Financial Performance - Gartner reported revenue of $1.5 billion in Q3 2025, reflecting a year-over-year increase of 3% as reported and 1% on a foreign exchange neutral basis [4] Investment Analysis - Gartner's shares dropped following disappointing quarterly results, despite exceeding consensus estimates; growth excluding U.S. Federal business decelerated, and management lowered forward guidance [3] - Forward guidance now anticipates Contract Value (CV) growth to decelerate from mid-single-digit to low single-digit growth [3] - Approximately 35% to 40% of Gartner's research contract value is in tariff-impacted industries, which are implementing cost-cutting measures and experiencing delayed sales cycles [3] - The rise of AI is disrupting many end markets, impacting Gartner's Business Model Advantage (BMA) and potentially shrinking its Total Addressable Market (TAM) [3] - Due to these factors, the fund decided to completely exit its position in Gartner [3] Hedge Fund Interest - Gartner, Inc. was held by 42 hedge fund portfolios at the end of Q3 2025, a decrease from 45 in the previous quarter [4] - The company is not listed among the 30 Most Popular Stocks Among Hedge Funds [4]

Group 1: Investment Performance - TimesSquare Capital's U.S. Focus Growth Strategy achieved a gross return of 4.00% and a net return of 3.78% in Q3 2025, outperforming the Russell Midcap Growth Index which returned 2.78% [1] - All major asset classes posted positive returns in Q3 2025, except for fixed income assets outside the US [1] Group 2: Gartner, Inc. Overview - Gartner, Inc. (NYSE:IT) reported a revenue of $1.5 billion in Q3 2025, reflecting a year-over-year increase of 3% and a 1% increase on a foreign exchange neutral basis [4] - The stock of Gartner, Inc. closed at $233.89 per share on December 12, 2025, with a market capitalization of $17.714 billion [2] Group 3: Investment Strategy and Positioning - TimesSquare Capital prefers critical system providers and specialized component designers within the Information Technology sector, focusing on companies that improve productivity and efficiency [3] - Despite Gartner, Inc. reporting revenue and earnings above estimates, a key contract value metric fell short, leading to an 18% decline in its stock price, prompting TimesSquare to liquidate its position [3] - The number of hedge funds holding Gartner, Inc. decreased from 45 to 42 in Q3 2025, indicating a decline in popularity among institutional investors [4]

Core Insights - The Carillon Scout Mid Cap Fund's third-quarter 2025 investor letter indicates positive returns for the Russell Midcap Index, driven by strong corporate earnings, AI infrastructure momentum, and U.S. Federal Reserve interest rate expectations [1] Company Overview - Gartner, Inc. (NYSE:IT) is a leading research and advisory firm that provides insights and tools for business and technology decision-making [3] - As of December 02, 2025, Gartner's stock closed at $228.62 per share, with a market capitalization of $17.315 billion [2] Financial Performance - Gartner, Inc. reported revenue of $1.5 billion for the third quarter of 2025, reflecting a 3% year-over-year increase and a 1% increase on a foreign exchange neutral basis [4] Market Sentiment - Gartner's stock experienced a one-month return of -3.58% and a significant 56.25% decline over the past 52 weeks [2] - The company faced a sell-off due to a weak business outlook and concerns over AI potentially disrupting its traditional research solutions [3] Investment Considerations - The fund's analysis suggests that while Gartner has investment potential, certain AI stocks may offer greater upside and lower downside risk [4] - The shift in information consumption towards AI-driven interactions poses a significant business risk to Gartner, indicating a need for strategic adaptation [3]

Core Insights - Gartner, Inc. is valued at a market cap of $16.2 billion and operates through Research, Conferences, and Consulting segments to support leaders across various industries [1] Stock Performance - Gartner's shares have significantly underperformed the broader market, dropping 56.7% over the past 52 weeks, while the S&P 500 Index has risen 10.5% [2] - Year-to-date, Gartner's shares have decreased by 53.7%, compared to an 11.2% gain in the S&P 500 [2] - The company's stock has also lagged behind the Technology Select Sector SPDR Fund, which increased by 17.8% over the same period [3] Financial Performance - In Q3 2025, Gartner reported adjusted EPS of $2.76, which beat estimates, and revenue of $1.52 billion, meeting forecasts [4] - Despite the positive earnings report, shares fell 7.6% due to weaknesses in operating segments, including a 3.2% decline in Consulting revenue and a 1.6% decline in Conferences revenue, along with negative free cash flow of $269 million [4] Future Earnings Expectations - For the fiscal year ending December 2025, analysts expect Gartner's adjusted EPS to decline by 9.2% year-over-year to $12.79 [5] - Gartner has a promising earnings surprise history, having beaten consensus estimates in the last four quarters [5] - The consensus rating among 14 analysts covering the stock is a "Moderate Buy," with four "Strong Buy" ratings, nine "Holds," and one "Strong Sell" [5] Price Target Adjustments - On November 5, Barclays cut its price target on Gartner to $260 while maintaining an "Equal Weight" rating [6] - The mean price target of $278.18 represents a 24.1% premium to Gartner's current price levels [6] - The highest price target of $390 suggests a potential upside of 74% [6]

Core Insights - Madison Large Cap Fund underperformed the S&P 500 Index, decreasing by 2.2% in Q3 2025 compared to an 8.1% gain for the index, primarily due to a market focus on short-term profits [1] - Gartner, Inc. (NYSE:IT) was highlighted as a significant detractor in the fund's performance, with a one-month return of -7.33% and a 52-week loss of 58.48% [2][3] Company Performance - Gartner, Inc. reported revenue of $1.5 billion in Q3 2025, reflecting a 3% year-over-year increase, with a 1% increase when adjusted for foreign exchange [4] - The stock closed at $228.64 per share on November 6, 2025, with a market capitalization of $16.48 billion [2] Market Context - The decline in Gartner's stock was attributed to disappointing Q2 results and slower-than-expected growth, influenced by macroeconomic factors and potential AI disruption [3] - The company is not among the 30 most popular stocks among hedge funds, with 45 hedge fund portfolios holding its shares at the end of Q2 2025, down from 51 in the previous quarter [4] Investment Outlook - Despite acknowledging Gartner's potential, the fund believes that certain AI stocks present greater upside potential and lower downside risk [4] - The fund emphasizes Gartner's strong reputation and proprietary data as mitigating factors against AI disruption [3]

Core Insights - The slow-growth economic environment, influenced by tariff-related trade tensions, is the primary concern for enterprise risk leaders in Q3 2025 [1] - AI-related risks are rapidly increasing, with information governance risks rising to the second most cited concern and shadow AI moving to third place [2][3] Group 1: Emerging Risks - The top five emerging risks reflect concerns about a volatile low-growth macroeconomic environment and the disruptive nature of AI technology [4] - 72% of respondents believe timely action on risks is critical, yet only 15% feel confident in prioritizing which risks to address [5] Group 2: Risk Management Strategies - Gartner recommends that risk leaders establish impact thresholds across various dimensions, including regulatory, legal, reputational, and ESG factors [5] - Effective risk prioritization tactics are essential for enterprise risk management leaders to navigate conflicting signals and ensure timely stakeholder engagement [7]

Core Insights - Gartner, Inc. is a leading research and advisory company providing insights and tools for various sectors including IT, finance, HR, and customer service [1] - The company demonstrates effective capital management with a Return on Invested Capital (ROIC) of 24.87% and a Weighted Average Cost of Capital (WACC) of 8.07% [2][6] Capital Efficiency Comparison - Gartner's ROIC to WACC ratio is 3.08, indicating strong capital efficiency compared to its cost of capital [2] - CDW Corporation has a ROIC of 19.21% and a WACC of 7.30%, resulting in a ROIC to WACC ratio of 2.63, reflecting efficient capital use [3] - Mettler-Toledo International Inc. leads with a ROIC of 37.77% and a WACC of 9.74%, achieving the highest ROIC to WACC ratio of 3.88 among peers, indicating exceptional capital utilization [4] - Jack Henry & Associates has a ROIC to WACC ratio of 2.34, suggesting efficient capital use, while ANSYS, Inc. has a lower ratio of 0.88, indicating its returns do not cover its cost of capital [5][6]

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]