Minot Light Capital Partners, an investment management company, released its “Capital Appreciation Fund” Q1 2026 Investor Letter. A copy of the letter can be downloaded here. The fund declined by 2.7% in the first quarter of 2026 due to a sharp macro-driven sector rotation following geopolitical tensions, which triggered inflation fears and rising interest rate expectations. This scenario led to a shift in investor focus toward sectors such as energy, defense, and AI-linked stocks, while the fund’s core exposure to healthcare, consumer, and idiosyncratic industrials lagged. Despite this setback, the firm maintains a constructive long-term outlook, suggesting that the current market volatility and consensus-driven market narratives are creating attractive opportunities in out-of-favor sectors where it continues to find compelling valuations and expects eventual mean reversion to drive future returns. In addition, you can check the Fund’s top five holdings to determine its best picks for 2026.
In its first-quarter 2026 investor letter, Minot Light Capital Appreciation Fund highlighted stocks like Olaplex Holdings, Inc. (NASDAQ:OLPX). Olaplex Holdings, Inc. (NASDAQ:OLPX) is a beauty company specializing in premium hair care products focused on hair repair and maintenance. The one-month return of Olaplex Holdings, Inc. (NASDAQ:OLPX) was 0.99% while its shares traded between $0.99 and $02.040 over the last 52 weeks. On May 12, 2026, Olaplex Holdings, Inc. (NASDAQ:OLPX) stock closed at approximately $2.04 per share, with a market capitalization of about $1.37 billion.
Minot Light Capital Appreciation Fund stated the following regarding Olaplex Holdings, Inc. (NASDAQ:OLPX) in its Q1 2026 investor letter:
“Over the past few months, three companies in our portfolio were acquired – Olaplex Holdings, Inc. (NASDAQ:OLPX) is one of those. Though takeouts do provide increased validation that we are hunting in the right places, in aggregate, we would have expected more from these events. Olaplex was acquired at about a 50% premium, which was reasonable, though still somewhat below what we thought the company could be worth over the longer-term.”
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Olaplex Holdings, Inc. (NASDAQ:OLPX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 14 hedge fund portfolios held Olaplex Holdings, Inc. (NASDAQ:OLPX) at the end of the fourth quarter, which was 16 in the previous quarter. While we acknowledge the risk and potential of Olaplex Holdings, Inc. (NASDAQ:OLPX) 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 Olaplex Holdings, Inc. (NASDAQ:OLPX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Olaplex Holdings, Inc. (NASDAQ:OLPX) and shared the list of the best rising penny stocks to buy. 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.
