Minot Light Capital Partners, an investment management company, released its “Capital Appreciation Fund” Q1 2026 Investor Letter. A copy of the letter can be downloaded here. The fund declined by 2.7% in the first quarter of 2026 due to a sharp macro-driven sector rotation following geopolitical tensions, which triggered inflation fears and rising interest rate expectations. This scenario led to a shift in investor focus toward sectors such as energy, defense, and AI-linked stocks, while the fund’s core exposure to healthcare, consumer, and idiosyncratic industrials lagged. Despite this setback, the firm maintains a constructive long-term outlook, suggesting that the current market volatility and consensus-driven market narratives are creating attractive opportunities in out-of-favor sectors where it continues to find compelling valuations and expects eventual mean reversion to drive future returns. In addition, you can check the Fund’s top five holdings to determine its best picks for 2026.
In its first-quarter 2026 investor letter, Minot Light Capital Appreciation Fund highlighted stocks like Neogen Corporation (NASDAQ:NEOG). Neogen Corporation (NASDAQ:NEOG) develops food and animal safety products used in testing and diagnostics for the agricultural and food industries worldwide. The one-month return of Neogen Corporation (NASDAQ:NEOG) was -8.60% while its shares traded between $4.53 and $11.43 over the last 52 weeks. On May 12, 2026, Neogen Corporation (NASDAQ:NEOG) stock closed at approximately $8.61 per share, with a market capitalization of about $1.88 billion.
Minot Light Capital Appreciation Fund stated the following regarding Neogen Corporation (NASDAQ:NEOG) in its Q1 2026 investor letter:
“Neogen Corporation (NASDAQ:NEOG) is one of our top five contributors to the portfolio this quarter. Neogen (NEOG), which is a turnaround that is recovering from its disastrous merger with 3M’s (MMM) food safety business due to the actions of new management, non-core asset sales, de-leveraging, and advancement towards its end-state of a fantastic business model catering to a relatively non-cyclical end-market (food safety) with a highly recurring revenue base, 25%-30% EBITDA margins, and very high free cash conversion. We believe Neogen will eventually be viewed as one of the best small-cap business models in the entire market, which should lead to continued multiple expansion.”
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Neogen Corporation (NASDAQ:NEOG) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 22 hedge fund portfolios held Neogen Corporation (NASDAQ:NEOG) at the end of the fourth quarter, which was 21 in the previous quarter. While we acknowledge the risk and potential of Neogen Corporation (NASDAQ:NEOG) 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 Neogen Corporation (NASDAQ:NEOG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Neogen Corporation (NASDAQ:NEOG) and shared the list of the best pet stocks to buy according to hedge funds. 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.
