Long Cast Advisors, an independent registered investment adviser, released its Q1 2026 investor letter. A copy of the letter is available to download here. For 1Q26, the portfolio’s cumulative net returns were flat, aligning with small and micro-cap market indexes, including the Russell 2000 and iShares ETFs. Geopolitical and economic factors, including the Iran war, inflation, and market herding behavior around AI expectations, influenced these returns. Since its inception in November 2015, LCA has achieved a cumulative 270% net return, or 13% CAGR, surpassing the indices. Founded in 2015, Long Cast focuses on long-term investing in well-researched small- and micro-cap companies, aiming for 15% annualized returns. At the end of the quarter, LCA’s top five positions made up 62% of the portfolio. In addition, please check the firm’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Long Cast Advisors highlighted Matrix Service Company (NASDAQ:MTRX). Matrix Service Company (NASDAQ:MTRX) is a specialty engineering and construction company that supports critical energy infrastructure and industrial markets. On June 1, 2026, Matrix Service Company (NASDAQ:MTRX) closed at $13.39 per share. One-month return of Matrix Service Company (NASDAQ:MTRX) was -1.01%, and its shares gained 11.12% over the past 52 weeks. Matrix Service Company (NASDAQ:MTRX) has a market capitalization of $387.97 million.
Long Cast Advisors stated the following regarding Matrix Service Company (NASDAQ:MTRX) in its Q1 2026 investor letter:
“Matrix Service Company (NASDAQ:MTRX) ($7.50 avg price). The company at last reported a profitable quarter. FY4Q (June year end) revenue guidance of ~$250M implies FY EBITDA could be ~$15M, which means this is trading at 7x EV / trailing EBITDA, in an environment with several tailwinds. I have urged the Board to observe what has happened at other small E&C’s such as STRL, TPC and IESC when outsiders changed the culture at what were previously sleepy regional construction companies like ours. They are making changes. With strong profitability at hand, a recently announced mining project booked in 4Q and changes coming in the CEO and CFO positions, there is a wide path for this to grow backlog and earnings and re-rate higher.”
Matrix Service Company (NASDAQ:MTRX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 26 hedge fund portfolios held Matrix Service Company (NASDAQ:MTRX) at the end of the first quarter, compared to 27 in the previous quarter. While we acknowledge the risk and potential of Matrix Service Company (NASDAQ:MTRX) 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 Matrix Service Company (NASDAQ:MTRX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Matrix Service Company (NASDAQ:MTRX) and shared Long Cast Advisers’ views on the company in the previous quarter. 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.
