Polen Capital, an investment management company, released its first-quarter 2025 investor letter for “Polen 5Perspectives Small Growth Strategy”. A copy of the letter is available to download here. Polen 5Perspectives Small Growth Composite Portfolio returned 3.3% gross and 3.0% net of fees, respectively, in the first quarter of 2026, compared to the -2.8% return of the Russell 2000 Growth Index. Small caps performed strongly at the start of the first quarter, but market volatility caused a shift in focus. Initially, fears of AI disruption in software dominated, followed by worries over private credit redemptions raising broader systemic risk concerns. By March, concerns shifted mainly to increasing geopolitical risks and their impact on rates and inflation. This heightened volatility is expected to continue for the foreseeable future. The importance of adopting a flexible approach to opportunities has become clear this year. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Polen 5Perspectives Small Growth Strategy highlighted Alphatec Holdings, Inc. (NASDAQ:ATEC). Alphatec Holdings, Inc. (NASDAQ:ATEC) is a medical technology company that specializes in developing technologies for the surgical treatment of spinal disorders. On May 13, 2026, Alphatec Holdings, Inc. (NASDAQ:ATEC) closed at $7.55 per share. One-month return of Alphatec Holdings, Inc. (NASDAQ:ATEC) was -30.22%, and its shares lost 40.74% over the past 52 weeks. Alphatec Holdings, Inc. (NASDAQ:ATEC) has a market capitalization of $1.16 billion.
Polen 5Perspectives Small Growth Strategy stated the following regarding Alphatec Holdings, Inc. (NASDAQ:ATEC) in its Q1 2026 investor letter:
“Alphatec Holdings, Inc. (NASDAQ:ATEC) is a medical technology company focused on spine surgery. The company has been gaining share through innovation, surgeon adoption, and a comprehensive procedural approach. During the quarter, shares declined as investors reacted to a combination of company-specific and broader healthcare factors. While revenue growth remains strong, profitability continues to lag expectations as the company invests heavily in salesforce expansion and new product launches. In addition, some concerns around procedure volumes and capital equipment demand contributed to weaker sentiment across the spine and orthopedic sector.”
Alphatec Holdings, Inc. (NASDAQ:ATEC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 47 hedge fund portfolios held Alphatec Holdings, Inc. (NASDAQ:ATEC) at the end of the fourth quarter, up from 40 in the previous quarter. In Q1 2026, Alphatec Holdings, Inc. (NASDAQ:ATEC) generated total revenue of $192 million, an increase of 14% year over year, with surgical revenue of $178 million growing 17%. While we acknowledge the risk and potential of Alphatec Holdings, Inc. (NASDAQ:ATEC) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Alphatec Holdings, Inc. (NASDAQ:ATEC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Alphatec Holdings, Inc. (NASDAQ:ATEC) and shared the list of best healthcare stocks to buy for the long term. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
