Cambiar SMID Fund, managed by Cambiar Investors, published its Q1 2026 investor letter. A copy of the letter is available to download here. The investor class (CAMMX) returned 2.21%, and the institutional class (CAMUX) returned 2.27%, underperforming the Russell 2500 Value Index’s 4.77%. This shortfall was mainly due to declines in certain healthcare and industrial positions and lower exposure to the top-performing Energy sector. The broader US equity market saw mixed results, with the S&P Index down 4.3% and the Russell 2000 up 0.9%. Economic headwinds included Mag 7 stocks’ high capex budgets, AI disruption fears, and redemption gates in private credit, exacerbated by the conflict in Iran, leading to a widespread drop in stock prices. Notably, value stocks outperformed growth stocks in the quarter, offering some downside protection. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Cambiar SMID Fund highlighted stocks like Phreesia, Inc. (NYSE:PHR). Phreesia, Inc. (NYSE:PHR) is a healthcare technology company that offers an integrated SaaS-based software and payment platform for the healthcare industry. On June 3, 2026, Phreesia, Inc. (NYSE:PHR) closed at $9.65 per share. One-month return of Phreesia, Inc. (NYSE:PHR) was -1.83%, and its shares lost 62.57% over the past 52 weeks. Phreesia, Inc. (NYSE:PHR) has a market capitalization of $596.48 million.
Cambiar SMID Fund stated the following regarding Phreesia, Inc. (NYSE:PHR) in its Q1 2026 investor letter:
“Security selection within Healthcare comprised the largest drag on performance in the quarter, as Solventum and Phreesia, Inc. (NYSE:PHR) each incurred sizable drawdowns. AI disruption fears also contributed to the drawdown in Phreesia, which is a software provider with a key niche in the healthcare space. The company’s in-patient registration/check-in services and digital engagement platform are well-entrenched in hospital networks and specialty practices. Some of the pain in the stock was in response to a guide-down in advertising revenue, as customers such as vaccine providers and GLP-1 companies have scaled back their spending. With that said, Phreesia maintained their full-year EBITDA guidance, pointing to continued client growth and stronger pricing. With a strong balance sheet and customer base of over 5K providers/100K physicians, we believe that Phreesia offers strong upside potential from current levels.”
Phreesia, Inc. (NYSE:PHR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 31 hedge fund portfolios held Phreesia, Inc. (NYSE:PHR) at the end of the first quarter fiscal 2027, up from 36 in the previous quarter. Phreesia, Inc. (NYSE:PHR) reported total revenue of $130.9 million, marking an increase of 13% year-over-year. While we acknowledge the risk and potential of Phreesia, Inc. (NYSE:PHR) 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 Phreesia, Inc. (NYSE:PHR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Phreesia, Inc. (NYSE:PHR) and shared Conestoga Capital Advisors’ insights 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.
