Grow Funds, an investment Advisor, released its Q1 2026 investor letter for “GROW Small Cap Equity Long/Short Fund”. A copy of the letter can be downloaded here. In Q1 2026, GROW Small Cap Equity Long/Short L.P (Fund) returned 4.18%, outperforming the Russell 2000 Growth Index’s –2.80%, HFRI Equity Hedge Index’s -0.24%, and the HFRI Fundamental Growth Index’s 0.47% returns. Long positions and hedges, and short positions, safeguarded the portfolio amid the volatility driven by the Iran War. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Grow Funds highlighted stocks like Palantir Technologies Inc. (NASDAQ:PLTR). Palantir Technologies Inc. (NASDAQ:PLTR) is a software company that develops and deploys software platforms to help the intelligence community. On June 22, 2026, Palantir Technologies Inc. (NASDAQ:PLTR) closed at $119.50 per share. One-month return of Palantir Technologies Inc. (NASDAQ:PLTR) was -12.52%, and its shares lost 16.57% over the past 52 weeks. Palantir Technologies Inc. (NASDAQ:PLTR) has a market capitalization of $286.48 billion.
Grow Funds stated the following regarding Palantir Technologies Inc. (NASDAQ:PLTR) in its Q1 2026 investor letter:
“Palantir Technologies Inc. (NASDAQ:PLTR) is a data analytics company used by governments, militaries, and large corporations to find patterns and insights. The stock trades for 66x EV/Revenues on 2026 expectations, by far the most expensive software company in the market. While the earnings have seen positive revisions throughout the year, we purchased put options on the stock multiple times on overvaluation and AI exuberance in the market as discussed above. We also shorted Palantir outright during the quarter.”
Palantir Technologies Inc. (NASDAQ:PLTR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 96 hedge fund portfolios held Palantir Technologies Inc. (NASDAQ:PLTR) at the end of the first quarter, up from 89 in the previous quarter. In Q1 2026, Palantir Technologies Inc.’s (NASDAQ:PLTR) revenue grew 85% year-over-year and 16% sequentially to $1.633 billion. While we acknowledge the risk and potential of Palantir Technologies Inc. (NASDAQ:PLTR) 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 PALANTIR TECHNOLOGIES INC. (NASDAQ:PLTR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Palantir Technologies Inc. (NASDAQ:PLTR) and shared the list of stocks Jim Cramer discussed. 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.
