In the first quarter of 2026, the investment landscape was marked by significant volatility, with global equities experiencing a downturn due to an energy crisis and rising anxieties surrounding artificial intelligence. Despite these challenges, Antipodes Global Strategy's portfolio demonstrated resilience, outperforming its benchmark. A key focus of their investor letter was Salesforce, Inc. (CRM), a leading cloud computing firm. While the company's stock experienced a decline amidst a broader software sector sell-off, Antipodes highlighted its robust financial health and promising future, particularly with the introduction of its innovative AI agent platform, Agentforce. This period underscored a strategic shift towards defensive assets and a re-evaluation of growth versus value stocks, with Antipodes effectively navigating these market dynamics by adjusting its holdings and emphasizing sectors like energy and healthcare.

Salesforce's performance in early 2026, as detailed by Antipodes, reflects a complex market environment where strong company fundamentals sometimes diverge from immediate stock movements. The cloud software giant, recognized for its customer relationship management technology, saw its shares trade lower despite its projected earnings growth of 14% year-on-year. This was largely attributed to investor concerns about AI's potential to disrupt traditional enterprise software. Nevertheless, Salesforce remained a significant holding for hedge funds, appearing among the top 30 most popular stocks. The company's first-quarter fiscal 2027 revenue growth further solidified its operational strength, even as broader market sentiment cast a shadow over the tech sector.

Salesforce's Market Position Amidst Tech Volatility

In the initial quarter of 2026, Salesforce, Inc. (CRM) found itself navigating a turbulent market, characterized by a widespread sell-off in the software sector. This downturn was largely fueled by increasing investor apprehension regarding the transformative potential of artificial intelligence and its possible disruptive effects on established enterprise software paradigms and valuations. Despite this challenging environment, Antipodes Global Strategy, in its investor correspondence, underscored Salesforce’s enduring fundamental strength. The firm projected a sustained 14% year-on-year earnings growth for Salesforce, largely propelled by the successful deployment and momentum of its advanced autonomous AI agent platform, Agentforce. This forward-looking outlook highlighted the company's capacity for innovation and its strategic positioning to leverage emerging technologies, even as the broader market reacted cautiously to the rapid pace of AI evolution.

Further elaborating on Salesforce's standing, the investor letter revealed that the company maintained a notable presence among hedge fund portfolios, securing the 28th position on a list of the 40 most favored stocks as of the end of the first quarter. While the number of hedge funds holding Salesforce decreased slightly from the previous quarter, its continued inclusion underscores a persistent belief in its long-term value among sophisticated investors. Financially, Salesforce reported a significant revenue of $11.13 billion in the first quarter of fiscal 2027, marking a 13% increase year-over-year on a nominal basis, and 12% at constant currency. These figures attest to the company's robust operational performance and its ability to generate substantial growth despite external market pressures. Antipodes acknowledged Salesforce’s investment potential but also suggested that certain AI-focused stocks might offer higher upside and reduced risk, pointing towards evolving investment strategies in a rapidly changing technological landscape.

Antipodes Global Strategy's Q1 2026 Portfolio Adjustments

The first quarter of 2026 proved to be a period of considerable market instability, primarily triggered by a major energy shock stemming from geopolitical events and a growing apprehension surrounding the advancements in artificial intelligence. During this turbulent time, global equities experienced a 3.2% decline in USD terms, with U.S. equities seeing an even steeper drop of 4.6%. Amidst this challenging backdrop, Antipodes Global Strategy successfully outperformed its benchmark, demonstrating the effectiveness of its investment approach. The quarter also saw a notable shift in market dynamics, as value stocks began to surpass growth stocks, signaling an acceleration in the rotation away from mega-cap technology firms. This strategic re-orientation of the market validated Antipodes' cautious yet opportunistic stance, enabling them to navigate the volatility with favorable outcomes across their diverse geographic exposures.

In response to the heightened market risks and evolving investment climate, Antipodes Global Strategy implemented several key adjustments to its portfolio. The firm strategically augmented its holdings in defensive sectors, a move aimed at mitigating potential downside risks and enhancing portfolio stability. This proactive risk management approach contributed significantly to their overall outperformance. Performance was notably bolstered by exposures in North America, Korea, Western Europe, and Latin America, which proved to be resilient markets during the downturn. Conversely, investments in Canada and the UK showed relative lag. Sector-wise, energy, consumer discretionary, industrials, and healthcare were the primary drivers of performance, contrasting with the underperformance observed in financials, real estate, and materials. These strategic allocations and tactical adjustments highlight Antipodes’ agility and deep analytical capabilities in responding to dynamic global economic and geopolitical shifts, emphasizing their focus on robust, fundamentally sound investments even in uncertain times.