Principal Investor Perspectives Q3 2026 (LGT Capital Partners)

Summary

• The second quarter of 2026 was shaped by geopolitical tensions and the continued AI investment boom, with the Iran conflict triggering significant volatility in oil prices.p.5
• Only 29% and 23% of active equity managers outperformed the US large cap index in 2024 and 2025 respectively.p.10
• LGT decided to reset its tactical equity positioning to neutral while continuing to underweight bonds.p.4
• World real GDP growth is shown at 2.9% for 2026, compared with 3.4% in 2025.p.14
• The LGT Endowment's equity hedge fund framework diversifies across more than ten underlying strategies to reduce concentration risk.p.11

Key insights

1. Interest rates have risen globally this year without denting the rally in stock markets, raising the question of whether bond and equity markets are in sync.p.4
2. Rising bond yields and the rush to build AI compute capacity make markets reliant on the data center buildout.p.7
3. For long-term investors, it may make sense to focus on structural rather than cyclical scarcities and to invest in solution providers.p.4
4. LGT has been investing on behalf of the Princely Family of Liechtenstein since 1998.p.12
5. Emerging market debt is held at +2% overweight on attractive yields and continued US dollar weakness.p.13
6. US CPI inflation is shown at 3.4% for 2026, versus 2.7% in 2025.p.14