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 ServiceTitan, Inc. (NASDAQ:TTAN). ServiceTitan, Inc. (NASDAQ:TTAN) is an American cloud-based software company that provides solutions for connecting and managing a range of business workflows. On June 18, 2026, ServiceTitan, Inc. (NASDAQ:TTAN) closed at $64.23 per share. One-month return of ServiceTitan, Inc. (NASDAQ:TTAN) was 1.68%, and its shares lost 38.47% over the past 52 weeks. ServiceTitan, Inc. (NASDAQ:TTAN) has a market capitalization of $6.13 billion.
Osterweis Opportunity Fund stated the following regarding ServiceTitan, Inc. (NASDAQ:TTAN) in its Q1 2026 investor letter:
“Our biggest detractor in IT was ServiceTitan, Inc. (NASDAQ:TTAN), the dominant vertical software operating system serving residential and commercial home services trades, including HVAC, plumbing, and electrical. The stock sold off during the quarter as it was caught in the aforementioned AI downdraft. However, we believe ServiceTitan’s business is AI-resilient, as its customers are skilled trade businesses that are largely insulated from AI-driven labor disruption. Moreover, with one of the industry’s most comprehensive datasets — exceeding $80 billion in transaction volume — we believe ServiceTitan is well positioned to enable AI-driven automation on its platform. With its premium Max tier, fully ramped customers with AI are expected to approximately double monthly subscription revenue.”
ServiceTitan, Inc. (NASDAQ:TTAN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 44 hedge fund portfolios held ServiceTitan, Inc. (NASDAQ:TTAN) at the end of the first quarter, compared to 48 in the previous quarter. While we acknowledge the risk and potential of ServiceTitan, Inc. (NASDAQ:TTAN) 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 SERVICETITAN, INC. (NASDAQ:TTAN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered ServiceTitan, Inc. (NASDAQ:TTAN) 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.
