The Wasatch Long/Short Alpha Fund, managed by Wasatch Global Advisors, has recently published its Q1 2026 investor letter, which is available to download here. A shift in investor sentiment led to a market correction and increased volatility in U.S. small- and mid-cap stocks during the first quarter. Despite this, enthusiasm for AI continued to support companies involved in infrastructure development. The situation intensified in the quarter due to the conflict in Iran, causing investors to consider the potential for rising oil prices and their wider implications on the global economy. In this context, the Russell 2500 Index returned 2.04% in the quarter, while the Wasatch Long/Short Alpha Fund—Investor Class surpassed this performance with a rise of 4.16%, supported by the outperformance of its short positions. In addition, please check the firm’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Wasatch Long/Short Alpha Fund highlighted RBC Bearings Incorporated (NYSE:RBC) as a notable contributor. RBC Bearings Incorporated (NYSE:RBC) is an industrial company that focuses on manufacturing and marketing engineered precision bearings, components, and systems for aerospace, defense, and industrial markets. On June 2, 2026, RBC Bearings Incorporated (NYSE:RBC) closed at $578.34 per share. One-month return of RBC Bearings Incorporated (NYSE:RBC) was 2.21%, and its shares gained 75.10% over the past 52 weeks. RBC Bearings Incorporated (NYSE:RBC) has a market capitalization of $18.29 billion.
Wasatch Long/Short Alpha Fund stated the following regarding RBC Bearings Incorporated (NYSE:RBC) in its Q1 2026 investor letter:
“In the first quarter, one of the largest contributors among our long positions was RBC Bearings Incorporated (NYSE:RBC) . The company is a U.S. industrial manufacturer of highly engineered precision bearings and components used in critical aerospace, defense, industrial and energy applications. Companies tied to the aerospace and defense industries tended to have strong stock-price performance in the first quarter, as investors anticipated higher demand for their products in a more geopolitically volatile environment. Separately, fundamentals for RBC Bearings remain strong, and we continue to like the growth potential of this longtime holding.”
RBC Bearings Incorporated (NYSE:RBC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 51 hedge fund portfolios held RBC Bearings Incorporated (NYSE:RBC) at the end of the first quarter, up from 38 in the previous quarter. RBC Bearings Incorporated’s (NYSE:RBC) net sales for the fourth quarter of fiscal 2026 rose by 18.3% year-over-year, reaching $518 million, fueled by ongoing strength in its A&D segment, as well as consistent expansion in its Industrial businesses. While we acknowledge the risk and potential of RBC Bearings Incorporated (NYSE:RBC) 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 RBC Bearings Incorporated (NYSE:RBC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered RBC Bearings Incorporated (NYSE:RBC) and shared Artisan Mid Cap Fund’s 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.
