Jul 22, 2026 – 4.00pmSome of Australia’s most highly regarded growth investors have just come off a horror 12 months after an aggressive round of interest rate rises combined with jitteriness around the rapid advancement of artificial intelligence smashed their funds.Growth stocks, which typically have a faster trajectory of earnings, suffered their worst financial year relative to value in more than 16 years. That’s because higher interest rates make it more expensive for businesses to borrow capital which reduces the value of their future profits.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Hyperion, ECP headline horror year for Australian growth funds
The high-profile money managers were among the worst-performing equity funds in FY26. But there are early signs they are starting to recover.








