Osterweis Capital Management, an investment management firm, released its Q1 2026 investor update for its “Osterweis Opportunity Fund”. A copy of the letter can be downloaded here. The fund returned -3.78% in the quarter compared to -2.81% for the Russell 2000 Growth Index. The fund’s long-term returns stay positive, but recent geopolitical shocks and AI disruption concerns pressured quarterly results. Security selection boosted performance, whereas sector allocation was a significant drag. Although the firm’s investment approach remains consistent, it continues to seek innovative companies in growing markets. In addition, you can check the Fund’s top 5 holdings for its best picks for 2026.
In its first-quarter 2026 investor letter, Osterweis Opportunity Fund highlighted Modine Manufacturing Company (NYSE:MOD) as a notable contributor. Modine Manufacturing Company (NYSE:MOD) is an industrial company that focuses on thermal management products and solutions. On June 18, 2026, Modine Manufacturing Company (NYSE:MOD) closed at $297.37 per share. One-month return of Modine Manufacturing Company (NYSE:MOD) was 14.14%, and its shares gained 207.45% over the past 52 weeks. Modine Manufacturing Company (NYSE:MOD) has a market capitalization of $15.71 billion.
Osterweis Opportunity Fund stated the following regarding Modine Manufacturing Company (NYSE:MOD) in its Q1 2026 investor letter:
“Our picks in Industrials were also additive to our relative performance in the first quarter. Our biggest contributor was Modine Manufacturing Company (NYSE:MOD), which has been growing quickly as it provides HVAC equipment to AI data centers. The company currently generates $1 billion in annual revenue, and it is targeting $2.5 billion in two years. Modine also had a legacy business that was exposed to more cyclical markets such as trucks and off-road vehicles, but it sold that division during the quarter, which caused the stock to rise substantially.”
Modine Manufacturing Company (NYSE:MOD) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 61 hedge fund portfolios held Modine Manufacturing Company (NYSE:MOD) at the end of the first quarter, up from 59 in the previous quarter. In the fourth quarter of fiscal 2026, Modine Manufacturing Company’s (NYSE:MOD) revenue increased 47% driven by growth in Climate Solutions segment. While we acknowledge the risk and potential of Modine Manufacturing Company (NYSE:MOD) 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 MODINE MANUFACTURING COMPANY (NYSE:MOD) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Modine Manufacturing Company (NYSE:MOD) and shared Prosper Stars & Stripes’ 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.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.
