Mar Vista U.S. Quality Strategy Q1 2026 performance

What happened: Mar Vista U.S. Quality Strategy, managed by Mar Vista Investment Partners, sold its stakes in SAP SE (SAP) and Salesforce (CRM) in Q1 2026, citing increased risk of AI disruption. Additionally, they exited Veralto Corporation (VLTO) for more compelling opportunities. These decisions were outlined in their first-quarter investor letter.

Market impact: The sell-offs affected the software and IT services sector. SAP and Salesforce are key players in enterprise software, and their stock prices may face downward pressure due to concerns about AI competition. Veralto, a tech hardware company, saw an opportunity shift, impacting its peers and related supply chains.

What to watch next: Investors should monitor the following catalysts: SAP's and Salesforce's Q2 earnings reports (scheduled for May 18 and May 25, respectively) for any AI-related strategic updates; the release of the U.S. Bureau of Labor Statistics' Jobs Report on June 3 for broader economic trends; and the technical support levels of SAP and CRM stocks, currently around $100 and $150, respectively.