Wasatch Global Investors, an asset management company, released its “Small Cap Growth Strategy” Q1 2026 investor letter. A copy can be downloaded here. The Wasatch Small Cap Growth Strategy lagged the benchmark, Russell 2000® Growth Index, in the quarter, which returned -2.81%. U.S. small-cap stocks were volatile in the quarter, due to shifting investor sentiment. Enthusiasm for artificial intelligence continued to support infrastructure buildout companies, but it triggered sell-offs in stocks of industries deemed vulnerable to AI disruption. Geopolitical tensions further contributed to the market swings. In this volatile environment, the firm remains focused on identifying companies with sustainable competitive advantages. In addition, you can check the Fund’s top 5 holdings for its best picks for 2026.
In its first-quarter 2026 investor letter, Wasatch Small Cap Growth Strategy highlighted Shift4 Payments, Inc. (NYSE:FOUR). Shift4 Payments, Inc. (NYSE:FOUR) is a software and payment processing solutions company. On June 18, 2026, Shift4 Payments, Inc. (NYSE:FOUR) closed at $39.40 per share. One-month return of Shift4 Payments, Inc. (NYSE:FOUR) was -8.88%, and its shares lost 57.29% over the past 52 weeks. Shift4 Payments, Inc. (NYSE:FOUR) has a market capitalization of $3.91 billion.
Wasatch Small Cap Growth Strategy stated the following regarding Shift4 Payments, Inc. (NYSE:FOUR) in its Q1 2026 investor letter:
“Shift4 Payments, Inc. (NYSE:FOUR) was one of the largest detractors from strategy performance during the quarter. Shift4 provides integrated payment processing and commerce software for merchants, specializing in the lodging and restaurant verticals. The stock was an example of one that sold off as part of the AI disruption debate. Additionally, the company made a large acquisition in 2025, and we believe investors are waiting to see evidence of realized synergies.
Given management’s track record of realizing high returns on prior acquisitions, we’re being patient as the company integrates the newly acquired business. We also believe Shift4’s business model is more resilient to AI disruption than investors may appreciate as the company has unique competitive moats across lodging and restaurants. In our view, Shift4’s ability to connect its payment rails across a complex ecosystem would be difficult for would-be competitors to replicate.”
Shift4 Payments, Inc. (NYSE:FOUR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 40 hedge fund portfolios held Shift4 Payments, Inc. (NYSE:FOUR) at the end of the first quarter, compared to 49 in the previous quarter. While we acknowledge the risk and potential of Shift4 Payments, Inc. (NYSE:FOUR) 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 SHIFT4 PAYMENTS, INC. (NYSE:FOUR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Shift4 Payments, Inc. (NYSE:FOUR) and shared a bullish thesis 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.
