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 stocks like Vital Farms, Inc. (NASDAQ:VITL). Headquartered in Austin, Texas, Vital Farms, Inc. (NASDAQ:VITL) is a branded food company focused on ethically produced pasture-raised eggs and butter. On June 18, 2026, Vital Farms, Inc. (NASDAQ:VITL) closed at $10.41 per share. One-month return of Vital Farms, Inc. (NASDAQ:VITL) was 2.76%, and its shares lost 71.27% over the past 52 weeks. Vital Farms, Inc. (NASDAQ:VITL) has a market capitalization of $446.05 million.
Osterweis Opportunity Fund stated the following regarding Vital Farms, Inc. (NASDAQ:VITL) in its Q1 2026 investor letter:
“Our holdings in Consumer Staples also hurt our relative performance, led by Vital Farms, Inc. (NASDAQ:VITL), an ethical egg and dairy producer. While the company has performed admirably and gained meaningful share within the egg category, we lost confidence in the management and their long-term guidance and exited the position early in the quarter.”
Vital Farms, Inc. (NASDAQ:VITL) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 33 hedge fund portfolios held Vital Farms, Inc. (NASDAQ:VITL) at the end of the first quarter, compared to 36 in the previous quarter. While we acknowledge the risk and potential of Vital Farms, Inc. (NASDAQ:VITL) 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 VITAL FARMS, INC. (NASDAQ:VITL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Vital Farms, Inc. (NASDAQ:VITL) and shared the list of best small cap agriculture 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.
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.
