Entegris Inc

Entegris was the worst performer in the month (-33.8%). The company supplies critical advanced materials to semiconductor fabs used to minimise contamination and improve chip performance. The stock is up 31% year-to-date but performed poorly in July amid the broader semiconductor sell-off. Investors questioned whether hyperscalers could sustain their enormous AI-infrastructure spending, took profits after the sector’s strong first-half rally, and became more concerned about Chinese semiconductor competition and potential future oversupply. Entegris was not an isolated casualty, but its weaker performance within the sector comes as a result of 75% of Entegris’ revenues being tied to chip production volumes, making it a higher-beta play.

We initiated a GardenSM position in Entegris due to long-term content growth potential, driven by node transitions, materials innovation and advanced packaging. Recent results were thesis affirming, with improving visibility into fab construction demand, confirmed gross margin recovery potential and progress on deleveraging. The profit cycle remains early enough to be compelling, in our view, with a recovery in memory capex and wafer starts likely to support higher volume-based revenue and margin expansion over time.

Entegris, which provides advanced materials, contamination control, and handling systems, benefited from spending and expansion across the semiconductor industry. The Fund's focus on high-quality businesses associated with technological innovation, including the AI infrastructure buildout, has positioned Entegris as a prominent contributor to relative performance. The ongoing demand in the semiconductor sector, driven by AI advancements, supports a positive outlook for Entegris as a durable investment.

Entegris, Inc. (ENTG) was a top contributor, benefiting from improving fab utilization and accelerating AI-driven semiconductor demand. It continues to gain share as advanced node transitions increase materials intensity per wafer. Looking ahead, fundamentals are improving with higher wafer starts, near-full utilization, and multiple growth drivers across advanced logic and memory. With its investment cycle largely complete and free cash flow expected to improve, we remain attracted to its strong competitive positioning and high barriers to entry.

Entegris has positively impacted performance due to an improved spending outlook for the semiconductor sector. The first quarter of 2026 saw a market repositioning toward companies with durable earnings power, and Entegris is highlighted as a company benefiting from this trend. The focus on organizations with a durable competitive advantage aligns with our investment strategy, which has resulted in equity outperformance during the quarter.

Entegris, Inc. is a global supplier of advanced materials science, contamination control, and specialized handling solutions in the technology sector. The manager highlights that Entegris’ growth is tied heavily to an increased overall market demand for AI related materials, indicating a strong future outlook for the company as AI continues to drive demand in the semiconductor industry.

For Entegris, while earnings beat, guidance was below estimates as margin pressure from expansionary efforts, combined with lackluster demand, helped contribute to lower expectations. This indicates challenges in maintaining growth momentum, which could impact future performance negatively.

Entegris (ENTG) is mentioned as a holding that did not increase its dividend over the past twelve months, as it is still paying down debt after a large acquisition. This indicates a cautious approach to its financial management during this period.