SGA Cites 0.8% Q4 Return and 31.25% Drop at Gartner, AI Vendor Named Cool
SGA Emerging Markets Growth Strategy's Q4 2025 letter reported portfolio gains of 0.8% gross vs MSCI EM Net TR's 4.7%, highlighted Gartner's 31.25% one-month drop and urged a split CEO/Chair structure and free-cash-flow–based compensation. Gartner also named Digits a Cool Vendor in its 2026 Agentic AI for Finance report.
1. Q4 2025 Portfolio Performance
In the fourth quarter of 2025, SGA Emerging Markets Growth Strategy delivered a 0.8% gross and 0.6% net return versus the MSCI EM Net TR Index’s 4.7% and the MSCI EM Growth Net TR Index’s 3.3%, following full-year gains of 23.8% gross and 22.8% net.
2. Engagement on Governance and Compensation
The letter highlighted Gartner’s 31.25% one-month share decline and 69.19% 52-week slump, prompting SGA’s calls for a mandatory CEO/Chair split, age-based board retirement policy, committee chair rotations, and executive pay tied to free cash flow per share with intermediate-term targets.
3. Agentic AI Recognition for Digits
Gartner recognized Digits, an AI-native general ledger platform, as a Cool Vendor in its 2026 Agentic AI for Finance report for embedding agentic AI into real-time financial data management and automating core accounting workflows.