AI Fuels Portfolio Growth
Compass Group Sees Strong AI Growth Outlook; Institutional Investors Expand ETF and Equity Holdings
Key Points
Compass Advisory Group LLC boosted its stake in Innovator U.S. Small Cap Power Buffer ETF – January (KJAN) to 615,077 shares, a 117.5% increase, making it about 6.9% of its portfolio and valued at roughly $25.66 million.
Compass Advisory Group LLC opened a new position in Equitable Holdings, Inc. (EQH) in the first quarter, acquiring 12,922 shares worth approximately $480,000.
Equitable Holdings, Inc. (EQH) shows high institutional ownership, with about 92.70% of its stock owned by hedge funds and other institutional investors.
Compass Group Canada is undergoing a leadership transition, with Gaétan de L’Hermite named Chief Executive Officer of Compass Group Canada & ESS North America, while Saajid Khan becomes Chief Executive Officer of Bon Appétit Management Company within Compass Group North America during a transition period.
Bernstein and SG Group project substantial AI-driven upside for Compass Group, citing a U.S. addressable AI market of more than $10 billion and suggesting Compass could capture at least its natural market share of 15%, with potential EBIT uplift of about 48 basis points by 2030 (equating to over €300 million in additional EBIT, or 8-9% of 2026 estimated EBIT).
Bernstein SocGen reaffirmed an Outperform rating on Compass Group PLC on June 26, pointing to a U.S. addressable AI market worth more than $10 billion that could lift the company's earnings by over €300 million by 2030, according to Investing.com. At the same time, Compass Group Canada named a new chief executive, while unaffiliated wealth managers sharply boosted their stakes in defensive, buffer-style ETFs.
The moves paint a split picture: an established food-services giant positioning itself as an AI-era winner, while institutional money managers hedge their bets with downside-protected equity funds.
Bernstein Sees $10 Billion AI Windfall for Compass Group
Analyst Sabrina Blanc at Bernstein SocGen argues that AI is a net positive for Compass Group PLC, not a threat. Her June 26 note projects that Compass could capture at least 15% of the U.S. AI-related services market — its "natural" share — according to StreetInsider. That alone would push EBIT margins up by 48 basis points by 2030, adding more than €300 million in operating profit. That figure equals roughly 8–9% of Compass Group's estimated 2026 EBIT.
The bull case rests on three pillars. First, Compass feeds workers at fast-growing U.S. data center campuses. Second, high-profile tech clients like OpenAI have become top accounts. Third, Compass is using AI in its own supply chain and kitchen operations to protect margins, according to Investing.com. The "AI loser" narrative — that automation would hollow out white-collar office catering — has largely faded as infrastructure demand surges.
Compass Group Canada Gets New CEO Amid Leadership Shuffle
On June 8, Compass Group Canada announced that Gaétan de L'Hermite will become CEO of Compass Group Canada and ESS North America, according to GlobeNewswire. De L'Hermite is a 22-year company veteran who previously ran Compass Group's Asia-Pacific and France operations. He said he is "honored to be joining at such an exciting time" and will focus on "building on the strong foundation" of the $2 billion Canadian business.
Outgoing Canada CEO Saajid Khan moves to lead Bon Appétit Management Company, a Compass-owned brand known for sustainability. Co-founder Fedele Bauccio will shift to Executive Chairman later in the year, according to Business Wire. Khan said he has "complete confidence in Gaétan's leadership" as the business enters its next phase.
Compass Advisory Group Pours $25 Million Into Buffer ETF
Compass Advisory Group LLC — a wealth manager with no connection to the food-services company — made a big move in the first quarter. It grew its stake in the Innovator U.S. Small Cap Power Buffer ETF – January (KJAN) by 117.5%, bringing its total to 615,077 shares worth about $25.66 million, according to Fintel. That position now makes up roughly 6.9% of the firm's entire portfolio.
Buffer ETFs are designed to limit losses during market downturns while still allowing some upside. Compass Advisory also opened a brand-new position in Equitable Holdings (EQH), buying 12,922 shares worth about $480,000. Equitable Holdings already has 92.7% institutional ownership, signaling broad confidence among professional investors, according to Nasdaq.
Wealth Managers Bet on Defensive ETFs to Offset AI Volatility
Long Island Wealth Management Inc. followed a similar playbook, boosting its stake in the Innovator MSCI EAFE Power Buffer ETF – January by about 20%, according to SEC 13F filings reviewed by Fintel. The EAFE fund covers stocks in Europe, Asia, and Australia — offering diversification away from the U.S.-heavy AI growth bets dominating headlines. The move signals growing appetite for international equities as a risk management tool.
Together, the ETF buying spree reflects a clear tension in markets right now. Institutions believe in long-term AI-driven growth — but they are not willing to take on full downside risk to chase it. Buffer ETFs offer a middle path: participate in gains while limiting losses to a set floor, such as the 15% downside protection built into KJAN.
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