Grow Funds, an investment Advisor, released its Q1 2026 investor letter for “GROW Small Cap Equity Long/Short Fund”. A copy of the letter can be downloaded here. In Q1 2026, GROW Small Cap Equity Long/Short L.P (Fund) returned 4.18%, outperforming the Russell 2000 Growth Index’s –2.80%, HFRI Equity Hedge Index’s -0.24%, and the HFRI Fundamental Growth Index’s 0.47% returns. Long positions and hedges, and short positions, safeguarded the portfolio amid the volatility driven by the Iran War. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Grow Funds highlighted Astera Labs, Inc. (NASDAQ:ALAB). Astera Labs, Inc. (NASDAQ:ALAB) is a semiconductor-based connectivity solutions provider for cloud and AI infrastructure. On June 18, 2026, Astera Labs, Inc. (NASDAQ:ALAB) closed at $417.07 per share. One-month return of Astera Labs, Inc. (NASDAQ:ALAB) was 40.08%, and its shares gained 361.86% over the past 52 weeks. Astera Labs, Inc. (NASDAQ:ALAB) has a market capitalization of $71.49billion.
Grow Funds stated the following regarding Astera Labs, Inc. (NASDAQ:ALAB) in its Q1 2026 investor letter:
“Astera Labs, Inc. (NASDAQ:ALAB) is a fabless semiconductor company that develops high-speed connectivity hardware and software for cloud and AI data-center infrastructure. The company specializes in PCIe, CXL, and Ethernet-based solutions designed to eliminate data, memory, and networking bottlenecks in accelerated computing environments. Astera had run up due to AI demand to a PE of over 57 times 2026 earnings. While revenue and earnings are continuing to grow, the rates of growth are decelerating and we thought that the P/E multiple was not sustainable.”
Astera Labs, Inc. (NASDAQ:ALAB) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 53 hedge fund portfolios held Astera Labs, Inc. (NASDAQ:ALAB) at the end of the first quarter, up from 52 in the previous quarter. While we acknowledge the risk and potential of Astera Labs, Inc. (NASDAQ:ALAB) 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 ASTERA LABS, INC. (NASDAQ:ALAB) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Astera Labs, Inc. (NASDAQ:ALAB) and shared the list of fastest-growing AI infrastructure stocks to buy. 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.
