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Bretton Capital Management, an investment management company, released the “Bretton Fund” second-quarter 2026 investor letter. The letter can be downloaded here. Bretton Fund returned 10.67% in the <a href="https://bitcomme.com/yangaroo-announces-strong-second-quarter-2026-financial-results-with-31-revenue-growth/" title="Yangaroo Announces Strong Second Quarter 2026 Financial Results with 31% Revenue Growth”>second quarter compared to a 15.20% return for the S&P 500 Index. Increased spending on AI data centers has hurt overall performance relative to the broader market. Despite optimism about AI, concerns linger over the sustainability of this spending. The semiconductor industry faces inflated stock prices amid high demand, but this is expected to lead to a downturn in the memory sector. The strategy will emphasize long-term fundamentals over short-term trends. Additionally, review the fund’s top five holdings for its best picks in 2026.
In its Q2 2026 investor letter, Bretton Fund highlighted SAP SE (NYSE:SAP). Headquartered in Walldorf, Germany, SAP SE (NYSE:SAP) is a leading enterprise application and business solutions provider. On August 24, 2026, SAP SE (NYSE:SAP) closed at $218.66 per share, reflecting a market capitalization of $252.38 billion. SAP SE (NYSE:SAP) posted a one-month return of 22.04%, while its shares lost 18.97% over the past 52 weeks.
Bretton Fund stated the following regarding SAP SE (NYSE:SAP) in its Q2 2026 investor letter:
“SAP SE (NYSE:SAP):Silicon Valley lore begins in 1957 when the Traitorous Eight left Shockley Semiconductor to found Fairchild and the modern chip and venture capital ecosystems. SAP began somewhat similarly: in 1972 IBM assigned five German engineers to build an enterprise software package, then decided to transfer the assignment to a different unit, and the original five went 20 miles down the road and bootstrapped their own product.
Half a century later, SAP is the largest enterprise software company in the world. Giant corporations use its software for everything from HR to complex manufacturing as the brainstem of their operations. And now there are questions of whether AI tools will allow companies to create their own software to replace their existing ones…” (Click here to read the full text)
SAP SE (NYSE:SAP) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 35 hedge fund portfolios held SAP SE (NYSE:SAP) at the end of the second quarter, compared to 33 in the previous quarter. While we acknowledge the potential of SAP SE (NYSE:SAP) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. 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.
