Andvari Associates, an investment management firm, released its second-quarter 2026 investor letter. The letter can be downloaded here. Andvari’s portfolio has performed strongly in the quarter, highlighted by Constellation Software’s 19.9% revenue growth and its plans to spend on acquisitions in 2026. The company is also focusing on AI tools to enhance productivity and customer relationships. However, the AI sector is experiencing extreme hype, leading to a growing disconnect between valuations and future cash flows. Predictions suggest the AI investment phase may decline in 1-3 years, despite current high demand for AI infrastructure, which is expected to attract significant competition. Concerns about overbuilding and risky…