Wasatch Global Investors, an asset management company, released its “Small Cap Growth Strategy” Q2 2026 investor letter. A copy of the letter can be downloaded here. Small-cap equities experienced strong gains in the second quarter, primarily driven by companies associated with artificial intelligence (AI). However, the leadership within this sector remains narrow. Unprofitable companies and those benefiting from rapid AI-driven demand performed well. As a result, the strategy underperformed compared to the Russell 2000® Growth Index, which gained 25.71%. The strategy’s disciplined focus on higher-quality businesses caused it to trail the benchmark, though several AI-related holdings contributed positively. The strategy prioritizes companies with sustainable growth potential, emphasizing the importance of quality investments. Overall, the strategy seeks to balance the transformative potential of AI with a commitment to long-term, quality investments. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, the Wasatch Small Cap Growth Strategy highlighted Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI). Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI), a US-based retailer of closeout merchandise and excess inventory, detracted from the Fund’s performance in the quarter. On July 24, 2026, Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) closed at $66.31 per share. One-month return of Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) was -9.41%, and its shares lost 37.61% over the past 52 weeks. Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) has a market capitalization of $4.01 billion.
Wasatch Small Cap Growth Strategy stated the following regarding Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) in its Q2 2026 investor update:
“Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) also detracted. The retailer offers a continually changing selection of closeout items and brand-name merchandise at deeply discounted prices. Ollie’s stock has been down due to concern about how rising oil prices may affect consumers’ spending power. However, we believe tighter household budgets could make Ollie’s value proposition more appealing, in turn making revenues more resilient than investors might expect.”
Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 36 hedge fund portfolios held Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) at the end of the first quarter, compared to 39 in the previous quarter. While we acknowledge the risk and potential of Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) 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 Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) and shared Artisan Small Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.
