Mar Vista U.S. Quality Premier Portfolio Q2 2026 Portfolio Activity

Mar Vista’s U.S. Quality Premier strategy returned +10.15% net-of-fees in Q2 2026. Top contributors included GE Aerospace (+31.70%), Alphabet (+23.25%), and Taiwan Semiconductor Manufacturing (+41.57%). The manager also started new positions in ASML Holding and exited Intuit during the quarter.

Analysis

This reads like a deliberate shift toward the parts of AI spending that convert into cash first: foundry capacity, lithography, and cloud/ads monetization. The second-order winner set is broader than the names mentioned — if capital intensity stays elevated, AMAT, LRCX, KLAC, and AVGO should also keep getting paid — but the market will punish them fastest if customers start stretching replacement cycles or the hyperscalers soften capex.

GE Aerospace’s contribution matters because it is less about cyclicality than about installed-base pricing power. That makes GE a cleaner way to own aviation recovery than OEM-heavy exposure, while leaving BA and lower-quality aerospace names more vulnerable if delivery bottlenecks ease and the aftermarket mix normalizes over the next 3-12 months.

The exit from INTU is the more interesting signal: the manager appears to be rotating away from mature software where multiple support has outrun incremental growth. That is a subtle warning for other “quality compounders” if AI lowers switching costs or makes product differentiation less durable; however, the contrarian read is that the selloff may be overdone if INTU can show AI-driven workflow monetization rather than just defensive retention.

The key risk to this whole posture is a capex digestion phase: if TSM/ASML guidance inflects down or order momentum weakens, high-multiple semicap names could de-rate quickly despite strong fundamentals. Near term, the trade works on positioning and momentum; over 6-18 months it depends on whether AI spend broadens beyond a handful of buyers into a durable industrial cycle.

Key Decisions for Investors

• Buy ASML and TSM on 3-5% pullbacks; 6-12 month hold for the AI capex cycle, with thesis invalidation if ASML order intake or TSM capex guidance rolls over for two consecutive quarters.
• Pair long GE Aerospace vs short BA or IYT to isolate aftermarket/pricing-power quality against weaker industrial execution; target a 3-6 month relative-performance trade.