Jacob Funds’ Q1 2026 Investor Letter

Jacob Funds, a mutual fund company, released its first-quarter 2026 investor letter. The Fund started the year optimistically, expecting fiscal and monetary policies to boost an economy showing mixed signals. However, rapid AI developments and a Middle East conflict caused one of the worst quarters since COVID. Market turbulence led to widespread tech sell-offs, blurring lines between at-risk and AI-benefiting firms. AI prompts critical long-term questions for the tech industry, with emerging agentic AI promising a new wave of innovation similar to the late 1990s dot-com boom. Recent market weakness allowed the Fund to invest in promising beneficiaries at better prices, creating an opportunity to pivot into names with potential for rapid growth and profits as agentic AI moves from niche to broad adoption. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.

A copy of Jacob Funds’ Q1 2026 investor letter can be downloaded here.