Long Cast Advisors, an independent registered investment adviser, released its Q1 2026 investor letter. A copy of the letter is available to download here. For 1Q26, the portfolio’s cumulative net returns were flat, aligning with small and micro-cap market indexes, including the Russell 2000 and iShares ETFs. Geopolitical and economic factors, including the Iran war, inflation, and market herding behavior around AI expectations, influenced these returns. Since its inception in November 2015, LCA has achieved a cumulative 270% net return, or 13% CAGR, surpassing the indices. Founded in 2015, Long Cast focuses on long-term investing in well-researched small- and micro-cap companies, aiming for 15% annualized returns. At the end of the quarter, LCA’s top five positions made up 62% of the portfolio. In addition, please check the firm’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Long Cast Advisors highlighted stocks like Research Solutions, Inc. (NASDAQ:RSSS). Research Solutions, Inc. (NASDAQ:RSSS) is a cloud-based technology company that provides research solutions for corporate, academic, government, and individual researchers. On June 1, 2026, Research Solutions, Inc. (NASDAQ:RSSS) closed at $2.19 per share. One-month return of Research Solutions, Inc. (NASDAQ:RSSS) was -14.45%, and its shares lost 21.22% over the past 52 weeks. Research Solutions, Inc. (NASDAQ:RSSS) has a market capitalization of $73.25 million.
Long Cast Advisors stated the following regarding Research Solutions, Inc. (NASDAQ:RSSS) in its Q1 2026 investor letter:
“Research Solutions, Inc. (NASDAQ:RSSS) ($2.57 avg price). The last 50 years – my lifetime – has seen countless advancements in many areas of industry, from healthcare to payments to tooling, but I think more than anything the change in media – the Internet – has broken everything and caused vast re-sorting. It’s been a great environment for entrepreneurs.
Since we initially made our investment in RSSS, AI has emerged as a technological threat to the information services industry. I see AI as a tool, like obsidian, fire, the wheel, etc. and I don’t believe (as I’ve heard others say) that it will be the last tool humans invent.
Taking this tool-analogy one step further, it is said that the person holding a hammer sees everything as a nail. I think that’s where the market is with AI; it thinks it will cudgel everything. I disagree. Companies that learn to use the tools and build around them should do well. Again, a great environment for entrepreneurs…” (Click here to read the full text)
Research Solutions, Inc. (NASDAQ:RSSS) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 5 hedge fund portfolios held Research Solutions, Inc. (NASDAQ:RSSS) at the end of the first quarter, compared to 6 in the previous quarter. While we acknowledge the risk and potential of Research Solutions, Inc. (NASDAQ:RSSS) 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 Research Solutions, Inc. (NASDAQ:RSSS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Research Solutions, Inc. (NASDAQ:RSSS) and shared Long Cast Advisers’ views 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.
