The Wasatch Long/Short Alpha Fund, managed by Wasatch Global Advisors, has recently published its Q1 2026 investor letter, which is available to download here. A shift in investor sentiment led to a market correction and increased volatility in U.S. small- and mid-cap stocks during the first quarter. Despite this, enthusiasm for AI continued to support companies involved in infrastructure development. The situation intensified in the quarter due to the conflict in Iran, causing investors to consider the potential for rising oil prices and their wider implications on the global economy. In this context, the Russell 2500 Index returned 2.04% in the quarter, while the Wasatch Long/Short Alpha Fund—Investor Class surpassed this performance with a rise of 4.16%, supported by the outperformance of its short positions. In addition, please check the firm’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Wasatch Long/Short Alpha Fund highlighted Procore Technologies, Inc. (NYSE:PCOR). Procore Technologies, Inc. (NYSE:PCOR) is a technology company that provides a cloud-based construction management platform and related software products. On June 2, 2026, Procore Technologies, Inc. (NYSE:PCOR) closed at $52.70 per share. One-month return of Procore Technologies, Inc. (NYSE:PCOR) was -0.49%, and its shares lost 21.72% over the past 52 weeks. Procore Technologies, Inc. (NYSE:PCOR) has a market capitalization of $7.95 billion.
Wasatch Long/Short Alpha Fund stated the following regarding Procore Technologies, Inc. (NYSE:PCOR) in its Q1 2026 investor letter:
“One of our largest detractors, ProCore Technologies, Inc. (NYSE:PCOR), serves as an example of a business where the investors may be underappreciating the durability of its competitive moat. ProCore’s software helps businesses manage construction projects. Procore’s competitive advantage lies not in its software code, but in its extensive network of contractors and the proprietary data generated across thousands of projects. That network effect and dataset are significantly more difficult to replicate than the software’s underlying functionality, and we believe they position the company well in an AI-driven environment.”
Procore Technologies, Inc. (NYSE:PCOR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 35 hedge fund portfolios held Procore Technologies, Inc. (NYSE:PCOR) at the end of the first quarter, compared to 45 in the previous quarter. Procore Technologies, Inc. (NYSE:PCOR) reported total revenue of $359 million in Q1 2026, marking an increase of 15.7% year-over-year. While we acknowledge the risk and potential of Procore Technologies, Inc. (NYSE:PCOR) 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 Procore Technologies, Inc. (NYSE:PCOR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Procore Technologies, Inc. (NYSE:PCOR) and shared the list of best cloud computing stocks to buy in 2026. 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.
