Wasatch Global Investors, an asset management company, released its “Micro Cap Fund” Q1 2026 investor letter. A copy of the letter can be downloaded here. The Wasatch Micro-Cap Fund—Investor Class fell 3.11% in Q1 2026 but outperformed the Russell Microcap Growth benchmark, which declined 4.25%. Sectors like industrials, consumer discretionary, and financials contributed positively to the fund’s performance, while information technology detracted. The US-Iran conflict and concerns about AI disruption led to market volatility in the quarter. The fund maintains a balanced risk portfolio, with strong fundamentals positioning it for long-term growth. In addition, you can check the Fund’s top 5 holdings for its best picks for 2026.
In its first-quarter 2026 investor letter, Wasatch Micro Cap Fund highlighted Lincoln Educational Services Corporation (NASDAQ:LINC). Lincoln Educational Services Corporation (NASDAQ:LINC) is a US based career-oriented postsecondary education services provider to high school graduates and working adults. On June 18, 2026, Lincoln Educational Services Corporation (NASDAQ:LINC) closed at $48.43 per share. One-month return of Lincoln Educational Services Corporation (NASDAQ:LINC) was 0.06%, and its shares gained 115.44% over the past 52 weeks. Lincoln Educational Services Corporation (NASDAQ:LINC) has a market capitalization of $1.54 billion.
Wasatch Micro Cap Fund stated the following regarding Lincoln Educational Services Corporation (NASDAQ:LINC) in its Q1 2026 investor letter:
“Leading positive contributors included a pair of for-profit education companies, Lincoln Educational Services Corporation (NASDAQ:LINC) and Universal Technical Institute, Inc. (UTI). Both are viewed as AI beneficiaries, given rising demand for training in skilled areas of employment that don’t require a college degree and that are less threatened by AI than many white-collar professions. In addition, the buildout of AI and cloud-services data centers has led to increased employment opportunities for skilled tradespeople and technicians. This positive demand backdrop is reflected in Lincoln’s ongoing aggressive expansion of its footprint through the addition of new campuses.”
Lincoln Educational Services Corporation (NASDAQ:LINC) 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 Lincoln Educational Services Corporation (NASDAQ:LINC) at the end of the first quarter, up from 23 in the previous quarter. In Q1 2026, Lincoln Educational Services Corporation’s (NASDAQ:LINC) revenue increased 22.5% to $144 million. While we acknowledge the risk and potential of Lincoln Educational Services Corporation (NASDAQ:LINC) 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 LINCOLN EDUCATIONAL SERVICES CORPORATION (NASDAQ:LINC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Lincoln Educational Services Corporation (NASDAQ:LINC) and shared a bullish thesis on the company. 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.
