The information in this presentation is for discussion purposes only. The material presented herein is compiled from sources thought to be reliable, including in certain instances, from third party sources, but accuracy and completeness cannot be guaranteed. Any opinions expressed herein reflect the judgment of Atalanta Sosnoff as of the date of this presentation, and are subject to change. This presentation does not take into account the particular investment objectives, restrictions, or financial, legal or tax situation of any specific investor, and is not intended to be, nor should it be construed or used as, investment, tax or legal advice.
All investing involves risk of loss including loss of principal. Products, including those of Atalanta Sosnoff, are subject generally to market, market sector, market liquidity, issuer and investment style risks, among other factors, to varying degrees. Nothing contained herein should be construed as an offer to sell, or a solicitation of an offer to buy or sell any security or investment strategy or a recommendation as to the advisability of investing in, purchasing or selling any security or investment strategy.
It should not be assumed that any securities or holdings discussed herein were or will prove to be profitable, or that the investment decisions we make in the future will be profitable or will equal the investment performance of the securities shown herein. There is no assurance that any security discussed herein will remain in an account’s portfolio at the time you receive this report or that securities sold have not been repurchased. Holdings and weightings are subject to change at any time at Atalanta’s discretion. Individual portfolios may vary.
Past performance does not guarantee future results. All performance is reported in U.S. dollars. This presentation may not be reproduced in whole or in part and may not be delivered to any person (other than an authorized recipient’s professional advisors under customary undertakings of confidentiality) without the prior written consent of Atalanta Sosnoff.
The S&P 500 Index (“S&P 500”) measures the performance of large capitalization U.S stocks. The S&P 500 is a market-value-weighted index of 500 stocks that are traded on the NYSE, AMEX and NASDAQ. The weightings make each company’s influence on the index’s performance directly proportional to the company’s value. The S&P 500 is one of the most widely used benchmarks of U.S. equity performance. The index does not reflect any initial or on-going expenses, but does reflect reinvestment of dividends and interest.
Index returns do not reflect taxes, sales, charges, expenses or other fees that the SEC requires to be reflected in the Fund’s performance. Indices are unmanaged, hypothetical portfolios of securities that are often used as a benchmark in evaluating the relative performance of a particular investment. An index should only be compared with a mandate that has a similar investment objective. An index is not available for direct investment. Atalanta Sosnoff Capital, LLC (“Atalanta”) is a New York state limited liability company registered with the Securities and Exchange Commissions as an investment advisor. Atalanta is 49% owned, but not controlled by Evercore.
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Equity and balanced accounts underperformed benchmarks for the three months ended March 31, 2026.
Much of the underperformance centered around the military action with Iran:
In addition, the market’s perception of potential disruption created by Artificial Intelligence (“AI”) also accounted for relative weakness in our portfolio. As the application of Generative AI evolves from query-based usage (chatbots) to task-oriented interfaces (agents), incumbent software companies’ business models may be vulnerable. The software-as-a-service (SaaS) sub-sector is most at risk in this transition and we have eliminated or reduced holdings in this group. That said, we believe that investors have painted with too broad of a brush when applying AI disruption fears to several of our non-software holdings.
Our position in a leading video game developer is an example of what we believe is a misperception of the AI threat. The company’s leading title, is poised for a major new release later this year which offers a significant earnings step-up. However, the stock declined dramatically after Google’s announcement of an experimental research prototype “Project Genie” which enables subscribers to create their own worlds. Unlike the stock’s reaction, we do not consider this to be a competitive threat to the company’s franchise. Our research shows Genie to be a tool which can create immersive environments but lacks the ability to create the compelling narrative required by loyal gamers. We retain our position but the stock underperformed in the quarter.
Closing out the quarter’s review, a concentration in memory-related semiconductors and a position in the dominant manufacturer of construction equipment delivered significant absolute and relative returns.
We have and are still operating under the premise that hostilities/closure of Persian Gulf oil exports will be of limited duration. That is not to say that the spike in oil prices is without economic impact. Our view is that domestic GDP growth will be reduced by at least 0.5% and by a greater magnitude in overseas geographies. However, the U.S. economy entered 2026 with significant tailwinds including fiscal stimulus from the Big Beautiful Bill and continuation of the AI-driven capital expenditure cycle. The net parses out to roughly 2% GDP growth. More importantly, we sense that investors will be willing to overlook lagged economic weakness once they see a clear path to the resumption of prior oil flows.
Recent investment initiatives include:
Earnings season is now upon us but please enjoy the return of baseball and warmer weather.
Sincerely,
Craig B. Steinberg Matt Ward Bob Ruland
The information in this presentation is for discussion purposes only. The material presented herein is compiled from sources thought to be reliable, including in certain instances, from third party sources, but accuracy and completeness cannot be guaranteed. Any opinions expressed herein reflect the judgment of Atalanta Sosnoff as of the date of this presentation, and are subject to change. This presentation does not take into account the particular investment objectives, restrictions, or financial, legal or tax situation of any specific investor, and is not intended to be, nor should it be construed or used as, investment, tax or legal advice.
All investing involves risk of loss including loss of principal. Products, including those of Atalanta Sosnoff, are subject generally to market, market sector, market liquidity, issuer and investment style risks, among other factors, to varying degrees. Nothing contained herein should be construed as an offer to sell, or a solicitation of an offer to buy or sell any security or investment strategy or a recommendation as to the advisability of investing in, purchasing or selling any security or investment strategy.
It should not be assumed that any securities or holdings discussed herein were or will prove to be profitable, or that the investment decisions we make in the future will be profitable or will equal the investment performance of the securities shown herein. There is no assurance that any security discussed herein will remain in an account’s portfolio at the time you receive this report or that securities sold have not been repurchased. Holdings and weightings are subject to change at any time at Atalanta’s discretion. Individual portfolios may vary.
Past performance does not guarantee future results. All performance is reported in U.S. dollars. This presentation may not be reproduced in whole or in part and may not be delivered to any person (other than an authorized recipient’s professional advisors under customary undertakings of confidentiality) without the prior written consent of Atalanta Sosnoff.
The S&P 500 Index (“S&P 500”) measures the performance of large capitalization U.S stocks. The S&P 500 is a market-value-weighted index of 500 stocks that are traded on the NYSE, AMEX and NASDAQ. The weightings make each company’s influence on the index’s performance directly proportional to the company’s value. The S&P 500 is one of the most widely used benchmarks of U.S. equity performance. The index does not reflect any initial or on-going expenses, but does reflect reinvestment of dividends and interest.
Index returns do not reflect taxes, sales, charges, expenses or other fees that the SEC requires to be reflected in the Fund’s performance. Indices are unmanaged, hypothetical portfolios of securities that are often used as a benchmark in evaluating the relative performance of a particular investment. An index should only be compared with a mandate that has a similar investment objective. An index is not available for direct investment. Atalanta Sosnoff Capital, LLC (“Atalanta”) is a New York state limited liability company registered with the Securities and Exchange Commissions as an investment advisor. Atalanta is 49% owned, but not controlled by Evercore.
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