Ithaka's portfolio underperforms R1000G by 570bps amid tech sector struggles in Q1 2026

In Q1 2026, Ithaka Group's portfolio underperformed the R1000G index by 570 basis points, mainly due to poor stock selection which detracted 540 basis points from relative performance. The technology sector was the largest source of underperformance, with only 5 out of 17 tech stocks beating the benchmark. Notable events included Howmet's strong earnings and Netflix's stock buyback plans funded by a merger-related breakup fee. Microsoft's shares fell due to investor concerns over high AI infrastructure costs and uncertain short-term returns. This performance highlights the challenges in tech investments amid market volatility.