Osterweis Capital Management, an investment management firm, released its Q1 2026 investor update for its “Osterweis Opportunity Fund”. A copy of the letter can be downloaded here. The fund returned -3.78% in the quarter compared to -2.81% for the Russell 2000 Growth Index. The fund’s long-term returns stay positive, but recent geopolitical shocks and AI disruption concerns pressured quarterly results. Security selection boosted performance, whereas sector allocation was a significant drag. Although the firm’s investment approach remains consistent, it continues to seek innovative companies in growing markets. In addition, you can check the Fund’s top 5 holdings for its best picks for 2026.
In its first-quarter 2026 investor letter, Osterweis Opportunity Fund highlighted Chime Financial, Inc. (NASDAQ:CHYM). Chime Financial, Inc. (NASDAQ:CHYM) is a financial technology company that delivers digital consumer banking and payment solutions. On June 18, 2026, Chime Financial, Inc. (NASDAQ:CHYM) closed at $17.60 per share. One-month return of Chime Financial, Inc. (NASDAQ:CHYM) was -1.12%, and its shares lost 40.40% over the past 52 weeks. Chime Financial, Inc. (NASDAQ:CHYM) has a market capitalization of $6.71 billion.
Osterweis Opportunity Fund stated the following regarding Chime Financial, Inc. (NASDAQ:CHYM) in its Q1 2026 investor letter:
“Our holdings in Financials also hurt our relative performance during the first quarter. Our biggest detractor was Chime Financial, Inc. (NASDAQ:CHYM), which was one of our standouts last quarter. The company’s cost-effective, mobile-first, cloud-native infrastructure allows it to offer underbanked populations a wide variety of free banking services, including no minimum balances, overdraft charges, or monthly/ATM fees. However, during the quarter, investors began to worry that their core demographic could be at risk during an economic downturn, particularly as the company reported substantial Q1 “transaction and risk losses.” We still believe in the business but have trimmed our position.”
Chime Financial, Inc. (NASDAQ:CHYM) 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 Chime Financial, Inc. (NASDAQ:CHYM) at the end of the first quarter, up from 49 in the previous quarter. While we acknowledge the risk and potential of Chime Financial, Inc. (NASDAQ:CHYM) 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 CHIME FINANCIAL, INC. (NASDAQ:CHYM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Chime Financial, Inc. (NASDAQ:CHYM) and shared the list of best new tech stocks with highest upside potential. 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.
