Cambiar SMID Fund, managed by Cambiar Investors, published its Q1 2026 investor letter. A copy of the letter is available to download here. The investor class (CAMMX) returned 2.21%, and the institutional class (CAMUX) returned 2.27%, underperforming the Russell 2500 Value Index’s 4.77%. This shortfall was mainly due to declines in certain healthcare and industrial positions and lower exposure to the top-performing Energy sector. The broader US equity market saw mixed results, with the S&P Index down 4.3% and the Russell 2000 up 0.9%. Economic headwinds included Mag 7 stocks’ high capex budgets, AI disruption fears, and redemption gates in private credit, exacerbated by the conflict in Iran, leading to a widespread drop in stock prices. Notably, value stocks outperformed growth stocks in the quarter, offering some downside protection. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Cambiar SMID Fund highlighted stocks like Solventum Corporation (NYSE:SOLV). Solventum Corporation (NYSE:SOLV) is a healthcare company that operates through Medsurg, Dental Solutions, and Health Information Systems segments. On June 3, 2026, Solventum Corporation (NYSE:SOLV) closed at $78.36 per share. One-month return of Solventum Corporation (NYSE:SOLV) was 9.36%, and its shares gained 3.97% over the past 52 weeks. Solventum Corporation (NYSE:SOLV) has a market capitalization of $13.57 billion.
Cambiar SMID Fund stated the following regarding Solventum Corporation (NYSE:SOLV) in its Q1 2026 investor letter:
“Security selection within Healthcare comprised the largest drag on performance in the quarter, as Solventum Corporation (NYSE:SOLV) and Phreesia each incurred sizable drawdowns. Solventum was spun off from 3M in 2024 and has three business segments: surgical equipment, dental solutions, and health IT systems. As a stand alone company, Solventum is doing all the right things – positive organic growth across all units, deleveraging the balance sheet, and generating positive free cashflow. The recent price weakness is due to AI-related fears pressuring the company’s HCIT unit, which accounts for ~16% of sales. We remain constructive on the company and continue to maintain a position.”
15 States with the Best Healthcare in the US
Solventum Corporation (NYSE:SOLV) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 36 hedge fund portfolios held Solventum Corporation (NYSE:SOLV) at the end of the first quarter, compared to 42 in the previous quarter. In Q1 2026, Solventum Corporation (NYSE:SOLV) reported sales of $2 billion, increased 2.1% on an organic basis compared to prior year and decreased 3% on a reported basis. While we acknowledge the risk and potential of Solventum Corporation (NYSE:SOLV) 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 Solventum Corporation (NYSE:SOLV) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Solventum Corporation (NYSE:SOLV) and shared the list of recent spin-off companies that hedge funds are piling into. 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.
