Loomis Sayles flags Trip.com as key holding despite fund underperformance
The Global Growth Fund returned 6.43 per cent in the second quarter, lagging the MSCI ACWI Index, while maintaining a position in China’s largest travel platform.
Loomis Sayles has released its second-quarter 2026 investor letter for the Global Growth Fund, reporting a quarterly return of 6.43 per cent. This result underperformed the MSCI ACWI Index, which delivered a return of 14.93 per cent over the same period. The fund employs a long-term private equity investment strategy that focuses on high-quality businesses with sustainable competitive advantages, typically investing at significant discounts to intrinsic value.
At the end of the quarter, the fund maintained an overweight position in communication services, consumer discretionary, and healthcare sectors. Conversely, it was underweight in information technology, financials, industrials, and consumer staples. Within this portfolio structure, Trip.com Group Limited (TCOM) was highlighted as a key holding, although the stock detracted from overall fund performance during the quarter.
Trip.com, formerly known as Ctrip, is a leading online travel services company founded in 1999. The firm provides comprehensive travel arrangements, including lodging, transportation, and packaged tours, alongside corporate travel management services. In China, the company operates through its Ctrip and Qunar platforms, while serving non-Chinese customers primarily through Trip.com and Skyscanner.
The company’s revenue is heavily concentrated in the domestic market, with China-related travel accounting for over 85 per cent of total revenue. Despite this concentration, Trip.com is available in 24 languages and 35 local currencies. Its international arm, Skyscanner, operates in over 50 countries and supports more than 35 languages. The group also holds equity interests in other major travel sites, including Tongcheng-Elong, China’s third-largest online travel agent, and MakeMyTrip, the largest in India.
As of 21 August 2026, Trip.com shares closed at US$46.11, reflecting a market capitalisation of US$29.04 billion. The stock posted a one-month return of 2.99 per cent, but shares have lost 30.06 per cent over the past 52 weeks. According to data cited in the report, 38 hedge fund portfolios held the stock at the end of the first quarter, a decrease from 46 portfolios in the previous quarter.
