Michigan-based investment advisor Cedar Grove Capital Management recently released its first quarter 2026 investor letter. A copy of the letter can be downloaded here. Cedar Grove Capital Management’s Multi-Strategy Composite posted a -23.0% net return since inception, compared to -5.6% for the Russell 2000, -5.9% for the Russell Microcap, and -5.5% for the S&P 500. Timing is key for early fund success, yet predicting external shocks during volatile macroeconomic periods is impossible. Rather than speculate on macro risks, it’s advisable to invest in strong companies at reasonable prices with good growth prospects. The recent downturn, called a “SaaS apocalypse,” was an opportunity to buy quality stocks that were undervalued despite better fundamentals and potential AI-driven gains. In February and early March, nearly all portfolio holdings reported strong earnings. However, the outbreak of war in Iran quickly overshadowed these gains, causing a rapid market selloff. While macro factors hurt performance in Q1, the firm is confident that its companies will do well in Q2 and beyond. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Cedar Grove Capital Management highlighted stocks like The Oncology Institute, Inc. (NASDAQ:TOI). The Oncology Institute, Inc. (NASDAQ:TOI) is an oncology company focused on providing various oncology services. On April 17, 2026, The Oncology Institute, Inc. (NASDAQ:TOI) closed at $3.54 per share. One-month return of The Oncology Institute, Inc. (NASDAQ:TOI) was 10.28%, and its shares gained 48.12% over the past 52 weeks. The Oncology Institute, Inc. (NASDAQ:TOI) has a market capitalization of $349.89 million.
Cedar Grove Capital Management stated the following regarding The Oncology Institute, Inc. (NASDAQ:TOI) in its Q1 2026 investor letter:
“The Oncology Institute, Inc. (NASDAQ:TOI) is a niche oncology platform that delivers end-to-end cancer care for lower-cost outpatient areas. The business strategy runs on a value-based care (VBC) model, where it assumes risk and is paid for managing total patient outcomes rather than just a standard billing per service model. This allows TOI to align incentives across payers, physicians, and patients, lowering the total cost of care while capturing economics across the full oncology value chain. The stock performance has done well since bottoming in 2024, with new management implementing changes that have directly led to accelerated topline growth via new payer contracts and rapid growth in the pharmacy segment. The company is currently inflecting towards an adjusted EBITDA profitability and is proving that operating leverage can be achieved as their VBC model continues to gain traction.”
The Oncology Institute, Inc. (NASDAQ:TOI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 21 hedge fund portfolios held The Oncology Institute, Inc. (NASDAQ:TOI) at the end of the fourth quarter, compared to 21 in the previous quarter. In Q4 2025, The Oncology Institute, Inc. (NASDAQ:TOI) reported revenue of $142 million compared to $100.3 million in the prior year period. While we acknowledge the risk and potential of The Oncology Institute, Inc. (NASDAQ:TOI) 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 The Oncology Institute, Inc. (NASDAQ:TOI) 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.
