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Burke Wealth Management, an investment management company, released its “Focused Growth Strategy” Q3 2026 investor letter. A copy of the letter can be downloaded here. The fund delivered strong results in the third quarter of 2026, benefiting from a sharp recovery in enterprise software and solid corporate earnings amid continued market volatility. The composite returned 10.8% net of fees, substantially outperforming the S&P 500 Total Return Index’s 2.3% gain, while its year-to-date return reached 20.0%, compared with 12.7% for the benchmark. The firm attributed the quarter’s strength partly to investors reassessing the long-term value of enterprise software platforms that can securely connect AI models with proprietary business data. Burke believes these platforms can serve as essential AI “harnesses,” providing permissions, security, and context for enterprise applications, although it cautions that AI agents could challenge traditional software business models and seat-based pricing. Looking ahead, Burke remains optimistic about the remainder of 2026, citing strong corporate earnings growth and the transition from AI infrastructure investment toward practical applications that may improve productivity and consumer experiences. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its second-quarter 2026 investor letter, Burke Wealth Focused Growth Strategy highlighted stocks like ServiceNow, Inc. (NYSE:NOW). ServiceNow, Inc. (NYSE:NOW) develops enterprise workflow software that helps organizations automate IT services, employee processes, customer operations, and other business functions. The one-month return of ServiceNow, Inc. (NYSE:NOW) was 18.06% while its shares traded between $81.24 and $192.97 over the last 52 weeks. On October 23, 2026, ServiceNow, Inc. (NYSE:NOW) stock closed at approximately $158.96 per share, with a market capitalization of about $161.07 billion.
Burke Wealth Focused Growth Strategy stated the following regarding ServiceNow, Inc. (NYSE:NOW) in its Q3 2026 investor letter:
The pain came to a crescendo during the first quarter of 2026 when ServiceNow, Inc. (NYSE:NOW) was down 30% (Click Here To Read The Letter In Detail).
ServiceNow, Inc. (NYSE:NOW) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 115 hedge fund portfolios held ServiceNow, Inc. (NYSE:NOW) at the end of the second quarter, which was 108 in the previous quarter. While we acknowledge the risk and potential of ServiceNow, Inc. (NYSE:NOW) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
