SGA Exits Alcon (ALC) as Cataract Demand Slows and Competition Rises

Sustainable Growth Advisers (SGA) has exited its position in Alcon Inc. (NYSE:ALC) due to slowing demand for cataract products and increasing competition in the sector. Alcon Inc., a Swiss-based healthcare and medical technology company, is a leader in eye care products and experienced a one-month return of 9.44% as of August 21, 2026.

Despite Alcon's strong product launches in new equipment and eye drops, leading to a 6% constant currency revenue growth and 16%+ earnings per share growth in Q1, the market for cataracts and contact lenses remains subdued. The portfolio reduced its position gradually and redeployed the capital into a higher growth opportunity in Schneider Electric.

Alcon remains a popular stock among hedge funds, but SGA believes that AI stocks offer greater upside potential and carry less downside risk.