Summary

• Ithaka's portfolio lagged the R1000G during the quarter, trailing the index by 570bps with stock selection detracting 540 bps to relative performance.
• The largest area of underperformance was Technology where the underperformance was pervasive, with only 5 of the 17 positions held for the entire quarter outperforming the benchmark.
• Howmet's stock climbed in the first quarter following a strong February earnings report that beat Street expectations on both the top and bottom line.
• Netflix plans to use the funds raised in anticipation of the merger, as well as the $2.8B breakup fee paid by Paramount, to buy back company stock.
• Microsoft's underperformance was due to investor anxiety regarding the massive capital expenditures required for AI infrastructure and uncertainty over the near-term return on investment for these projects.

The following segment was excerpted from The Ithaka Group Q1 2026 Commentary.

In a decisively negative market, Ithaka's portfolio lagged the R1000G during the quarter, trailing the index by 570bps (-15.5% to -9.8%, gross of fees). Stock selection detracted 540 bps to

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