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 stocks like The Ensign Group, Inc. (NASDAQ:ENSG). The Ensign Group, Inc. (NASDAQ:ENSG) is a healthcare services company that provides skilled nursing, senior living, and rehabilitative services. On June 2, 2026, The Ensign Group, Inc. (NASDAQ:ENSG) closed at $165.70 per share. One-month return of The Ensign Group, Inc. (NASDAQ:ENSG) was -9.68%, and its shares gained 9.44% over the past 52 weeks. The Ensign Group, Inc. (NASDAQ:ENSG) has a market capitalization of $9.68 billion.
Wasatch Long/Short Alpha Fund stated the following regarding The Ensign Group, Inc. (NASDAQ:ENSG) in its Q1 2026 investor letter:
“Another top contributor was The Ensign Group, Inc. (NASDAQ:ENSG). Ensign operates skilled nursing and senior living facilities. The company also acquires and leases health care real estate. Ensign’s shares moved higher after the company reported strong fourth-quarter and full-year 2025 results, in which annual revenues were up 18.7% from the prior year. Management also issued full-year 2026 earnings and revenue guidance that was well received by market participants, and cited year-over-year improvements in occupancy, skilled nursing days, and Medicare revenue in its same-store and transitioning portfolios. Ensign is a longtime Wasatch holding and we continue to view it as one of the best operators in the health-care sector.”
The Ensign Group, Inc. (NASDAQ:ENSG) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 37 hedge fund portfolios held The Ensign Group, Inc. (NASDAQ:ENSG) at the end of the first quarter, up from 35 in the previous quarter. While we acknowledge the risk and potential of The Ensign Group, Inc. (NASDAQ:ENSG) 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 The Ensign Group, Inc. (NASDAQ:ENSG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered The Ensign Group, Inc. (NASDAQ:ENSG) and shared ClearBridge Small Cap Growth Strategy’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.
