Fidelity Investments, an investment management company, recently released its first-quarter 2026 investor letter for “Fidelity Growth Strategies Fund”. A copy of the letter is available to download here. The Fidelity Growth Strategy is a diversified equity strategy aimed at domestic midcap growth stocks. The approach focuses on identifying quality companies that deliver steady above-average growth and can outperform over time. The Fund (Retail Class shares) returned -3.21% in the quarter, outperforming the benchmark Russell Midcap® Growth Index’s -6.35% return. The outperformance was primarily due to industry and stock selection, particularly in the industrials sector. The US stock market started 2026 positively, but declined in late February amid concerns over the viability of artificial intelligence investments and Middle Eastern conflicts. Investors shifted to defensive strategies, favoring stable, large-cap firms, leading to value equities outperforming growth. The fund continues to favor companies with strong competitive moats and growth potential. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Fidelity Growth Strategies Fund highlighted stocks like Fair Isaac Corporation (NYSE:FICO). Fair Isaac Corporation (NYSE:FICO) is a technology company that develops analytic, software, and digital decision-making technologies and services. The one-month return of Fair Isaac Corporation (NYSE:FICO) was 17.48%, and its shares lost 39.91% of their value over the last 52 weeks. On May 18, 2026, Fair Isaac Corporation (NYSE:FICO) stock closed at $1,222.61 per share, with a market capitalization of $28.35 billion.
Fidelity Growth Strategies Fund stated the following regarding Fair Isaac Corporation (NYSE:FICO) in its Q1 2026 investor letter:
“An overweight in Fair Isaac Corporation (NYSE:FICO) (-37%), the data-analytics firm known for creating the FICO® credit score, also hurt. The stock fell this quarter, largely on valuation concerns after a run-up in late 2025. We reduced the holding, which ended Q1 as our No. 15 position.”
Fair Isaac Corporation (NYSE:FICO) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 81 hedge fund portfolios held Fair Isaac Corporation (NYSE:FICO) at the end of the fourth quarter, up from 72 in the previous quarter. Fair Isaac Corporation (NYSE:FICO) announced second-quarter fiscal 2026 revenue of $692 million, reflecting a 39% year-over-year growth. While we acknowledge the risk and potential of Fair Isaac Corporation (NYSE:FICO) 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 Fair Isaac Corporation (NYSE:FICO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Fair Isaac Corporation (NYSE:FICO) and shared Jensen Quality Mid Cap Fund’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.
