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SGA Global Growth Strategy exits Alcon as cataract market cools
SGA said Alcon posted 6% constant-currency topline growth in Q1 and 16%+ EPS growth, but results were slightly below expectations as cataract and contact lens demand stayed subdued.
SGA Global Growth Strategy, a strategy managed by SGA Sustainable Growth Advisers, said it exited its position in Alcon Inc. as it assessed a softer cataract market and increasing competitive pressure, according to the firm’s second-quarter 2026 investor letter.
The letter highlighted Alcon’s eye-care focus, noting the company remains a leader across multiple categories tied to aging and myopia. SGA cited Q1 constant-currency topline growth of 6% and Q1 earnings per share growth of 16% or more, while saying the figures were slightly below expectations because cataracts and contact lenses remained subdued.
SGA also pointed to competition in premium intraocular lenses for cataracts, saying Alcon is still the category leader but is expected to keep ceding share from recent highs above 80%. The firm linked valuation compression to sentiment rather than weakening business quality.
Beyond Alcon, SGA reported the Global Growth Portfolio returned 7.4% gross and 7.2% net for the quarter, compared with 14.9% for the MSCI ACWI and 19.8% for the MSCI ACWI Growth Index. SGA said it expects 16% revenue growth and 20% earnings growth over the next three years.