Michigan-based investment advisor Cedar Grove Capital Management recently released its first quarter 2026 investor letter. A copy of the letter can be downloaded here. Cedar Grove Capital Management’s Multi-Strategy Composite posted a -23.0% net return since inception, compared to -5.6% for the Russell 2000, -5.9% for the Russell Microcap, and -5.5% for the S&P 500. Timing is key for early fund success, yet predicting external shocks during volatile macroeconomic periods is impossible. Rather than speculate on macro risks, it’s advisable to invest in strong companies at reasonable prices with good growth prospects. The recent downturn, called a “SaaS apocalypse,” was an opportunity to buy quality stocks that were undervalued despite better fundamentals and potential AI-driven gains. In February and early March, nearly all portfolio holdings reported strong earnings. However, the outbreak of war in Iran quickly overshadowed these gains, causing a rapid market selloff. While macro factors hurt performance in Q1, the firm is confident that its companies will do well in Q2 and beyond. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Cedar Grove Capital Management highlighted stocks like ABIVAX Société Anonyme (NASDAQ:ABVX). ABIVAX Société Anonyme (NASDAQ:ABVX) is a French clinical-stage biotechnology company that focuses on developing treatments for inflammatory bowel diseases. On April 16, 2026, ABIVAX Société Anonyme (NASDAQ:ABVX) closed at $122.47 per share. One-month return of ABIVAX Société Anonyme (NASDAQ:ABVX) was 2.09%, and its shares gained 1,819.53% over the past 52 weeks. ABIVAX Société Anonyme (NASDAQ:ABVX) has a market capitalization of $10.00 billion.
Cedar Grove Capital Management stated the following regarding ABIVAX Société Anonyme (NASDAQ:ABVX) in its Q1 2026 investor letter:
“ABIVAX Société Anonyme (NASDAQ:ABVX) is a small French biotechnology company that released P3 data in July of last year on its ulcerative colitis (UC) drug, obefazimod. Obefazimod appears to be a better option for treating UC than JAK inhibitors or TNF-alpha blockers, given its efficacy, delivery, tolerability, and safety profile. Plenty of rumors have come from French publication La Lettre about a possible buyout of the company from various pharma companies looking to boost their existing UC portfolio. Given the limited number of good drug assets in the market, Abivax seems like an excellent take-out target ahead of maintenance data later this summer. Rumors have circulated that Abivax could fetch between $15 and $20 billion before maintenance data is released. If no deal comes through, commercialization will come next, which is already being prepared with their recent CCO hire. Assuming maintenance data comes in positive, the future looks bright for Abivax, whether the strategy is to get acquired or bring the drug to market.”
ABIVAX Société Anonyme (NASDAQ:ABVX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 72 hedge fund portfolios held ABIVAX Société Anonyme (NASDAQ:ABVX) at the end of the fourth quarter, up from 56 in the previous quarter. While we acknowledge the risk and potential of ABIVAX Société Anonyme (NASDAQ:ABVX) 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 ABIVAX Société Anonyme (NASDAQ:ABVX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered ABIVAX Société Anonyme (NASDAQ:ABVX) and shared TimesSquare Capital U.S. Small Cap Growth Strategy’s views on the company. 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.
