Polen Capital, an investment management company, released its first-quarter 2025 investor letter for “Polen 5Perspectives Small Growth Strategy”. A copy of the letter is available to download here. Polen 5Perspectives Small Growth Composite Portfolio returned 3.3% gross and 3.0% net of fees, respectively, in the first quarter of 2026, compared to the -2.8% return of the Russell 2000 Growth Index. Small caps performed strongly at the start of the first quarter, but market volatility caused a shift in focus. Initially, fears of AI disruption in software dominated, followed by worries over private credit redemptions raising broader systemic risk concerns. By March, concerns shifted mainly to increasing geopolitical risks and their impact on rates and inflation. This heightened volatility is expected to continue for the foreseeable future. The importance of adopting a flexible approach to opportunities has become clear this year. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Polen 5Perspectives Small Growth Strategy highlighted stocks like Figure Technology Solutions, Inc. (NASDAQ:FIGR). Figure Technology Solutions, Inc. (NASDAQ:FIGR) is a financial technology company that provides blockchain infrastructure to originate, service, and finance consumer loans. On May 13, 2026, Figure Technology Solutions, Inc. (NASDAQ:FIGR) closed at $40.51 per share. One-month return of Figure Technology Solutions, Inc. (NASDAQ:FIGR) was 13.38%, and YTD its shares lost 0.81%. Figure Technology Solutions, Inc. (NASDAQ:FIGR) has a market capitalization of $8.92 billion.
Polen 5Perspectives Small Growth Strategy stated the following regarding Figure Technology Solutions, Inc. (NASDAQ:FIGR) in its Q1 2026 investor letter:
“Figure Technology Solutions, Inc. (NASDAQ:FIGR) is a fintech company leveraging blockchain infrastructure to originate, service, and finance consumer loans, with a primary focus on home equity products. Its platform aims to improve efficiency, lower costs, and expand access to credit through digitization and securitization. Shares lagged in the period as investor sentiment toward fintech and credit-sensitive businesses softened amid interest rate volatility and macro uncertainty. Concerns around funding conditions, loan demand, and credit performance weighed on the group more broadly. While we think Figure continues to execute on loan growth and platform expansion, the environment has led to more cautious investor expectations.”
Figure Technology Solutions, Inc. (NASDAQ:FIGR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 40 hedge fund portfolios held Figure Technology Solutions, Inc. (NASDAQ:FIGR) at the end of the fourth quarter, compared to 41 in the previous quarter. While we acknowledge the risk and potential of Figure Technology Solutions, Inc. (NASDAQ:FIGR) 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 Figure Technology Solutions, Inc. (NASDAQ:FIGR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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.
