Cambiar Opportunity Fund, managed by Cambiar Investors, published its Q2 2026 investor letter. The letter can be downloaded here. U.S. equity markets experienced a significant rebound in Q2, with the S&P 500 rising 15.2% and the Russell 2000 up 21.5%. Growth stocks outperformed value, although value retained a year-to-date lead. The market’s rise was fueled by technology and AI stocks, which now dominate the S&P 500, accounting for nearly 50%. Notably, the demand for advanced AI chips has become a structural opportunity in the semiconductor sector, surpassing previous cycles. Despite strong profit margins, caution is warranted due to extreme valuation metrics. The Cambiar Opportunity Fund gained 11.58% (CAMOX) but lagged behind the Russell 1000 Value Index’s 13.87% gain, reflecting an underweight in tech. The market remains speculative, illustrated by the recent SpaceX IPO and the rapid rise in memory chip stock prices. Overall, while market leadership was driven by a few tech stocks, future uncertainties including geopolitical conflicts and AI disruption may challenge economic growth and specific company earnings. Portfolio construction focuses on broad ownership across diverse sectors. Additionally, reviewing the Fund’s top five holdings could help identify its best picks for 2026.
In its second-quarter 2026 investor letter, Cambiar Opportunity Fund highlighted Amazon.com, Inc. (NASDAQ:AMZN). Amazon.com, Inc. (NASDAQ:AMZN) is a multinational technology and retail company known for its leading online marketplace and cloud platform. On September 30, 2026, Amazon.com, Inc. (NASDAQ:AMZN) closed at $249.15 per share. Over the past month, Amazon.com, Inc. (NASDAQ:AMZN) declined 4.74%, but its shares are up 10.89% over the past year. Amazon.com, Inc. (NASDAQ:AMZN) has a market capitalization of $2.69 trillion, and its stock has traded within a 52-week range of $196.00 to $287.20.
Cambiar Opportunity Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2026 investor letter:
“A few comments on Alphabet and Amazon.com, Inc. (NASDAQ:AMZN), as these two holdings (along with other large hyperscalers) have been the subject of increased scrutiny over their large capex budgets. After a slow start to the year, Amazon rebounded in the second quarter. The company’s AWS segment showed impressive growth and should continue to benefit from the buildout of agentic AI. Amazon has a history of making sizable investments ahead of key inflection points – examples include e-commerce, AWS, and now AI. In short, the company is willing to sacrifice free cashflow in the short run to build a longer-term moat. An excerpt from Amazon’s most recent annual letter (April ’26) provides relevant context: “FCF is challenged until these initial tranches of capacity are being monetized and revenue growth out-paces capex growth. We’ve been through this cycle with the first big AWS growth wave, and liked the results. We expect to feel similarly about this next wave, with much larger potential downstream revenue and FCF. We have customer commitments that make our capex investments predictable. We’re not investing approximately $200 billion in capex in 2026 on a hunch.” Amazon remains a high conviction holding in the Fund.”
