Tran Capital’s Multi Cap Growth Strategy named Palo Alto Networks a leading Q2 contributor, saying it was persuading customers to consolidate security tools on its platform as AI adoption expands potential threats; the manager sees the company positioned to gain share.
The letter says Tran Capital has held Palo Alto for years and views cybersecurity as essential business spending. It credits the company’s platformization strategy—moving customers from separate security products to an integrated platform—and says connected systems are needed to respond to AI-driven threats in real time. The manager also said the shares were unfairly punished in a broader software selloff earlier in the year.
The strategy returned 17.5% net in Q2 and 10.5% year to date, versus Q2 returns of 15.2% for the S&P 500 and 11.1% for the Bloomberg U.S. Mid Cap Index. The article says 89 hedge fund portfolios held PANW at quarter-end, up from 87 the previous quarter. Shares closed at $393.30 on Sept. 23 and had gained 94.5% over 52 weeks.
