Summary

• During the quarter, the Virtus Zevenbergen Innovative Growth Stock Fund trailed the Russell 3000® Growth Index, -14.67% ((Class I)) versus -9.54%.
• Vertiv Holdings Co. shares were lifted due to robust demand for digital infrastructure, with the company doubling its backlog to $15 billion over the course of 2025.
• Quanta Services Inc.'s record backlog reflects the growing need for new grid infrastructure to power AI data centers, a trend validated by massive 2026 capital expenditure budgets.
• Shopify Inc.'s shares reflected a downshift in consumer sentiment and questions about its role in AI shopping experiences, despite 31% year-over-year revenue growth.
• Axon Enterprise Inc. is building an ecosystem that should fuel new contract bookings and help the company fulfill its $6 billion revenue target for 2028.

Market Summary: Strange Days

Markets rarely move in straight lines, especially in an environment where the only certainty is more uncertainty. Growth investors faced a convergence of headwinds in the quarter: geopolitical tensions in the Middle East, renewed inflation