Rewey Asset Management, an investment management firm, released its “RAM Smid Composite” investor letter for the first quarter of 2026. A copy of the letter can be downloaded here. The Composite reports a return of 9.21% in Q1 2026, outperforming the Russell 2500 Value Total Return index, which gained 4.77%. The index rose 11.08% until late February but declined later due to the Iran conflict and rising oil prices. The Index’s performance signals a shift in investor focus from larger-cap tech stocks to undervalued and neglected small and mid-cap companies. Despite the market environment, Rewey remains unchanged in its investment philosophy, emphasizing financially robust companies that can withstand market volatility and exploit strategic opportunities. In addition, please check the Composite’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Rewey Asset Management highlighted Ultra Clean Holdings, Inc. (NASDAQ:UCTT) as a leading contributor to performance. Ultra Clean Holdings, Inc. (NASDAQ:UCTT) is a leading developer and supplier of critical subsystems, components, and parts, and cleaning and analytical services for the semiconductor industry. On April 21, 2026, Ultra Clean Holdings, Inc. (NASDAQ:UCTT) closed at $77.55 per share. One-month return of Ultra Clean Holdings, Inc. (NASDAQ:UCTT) was 19.17%, and its shares gained 274.44% over the past 52 weeks. Ultra Clean Holdings, Inc. (NASDAQ:UCTT) has a market capitalization of $3.53 billion.
Rewey Asset Management stated the following regarding Ultra Clean Holdings, Inc. (NASDAQ:UCTT) in its Q1 2026 investor letter:
“Ultra Clean Holdings, Inc. (NASDAQ:UCTT), highlighted in our 3Q25 letter, was our top performer in 1Q26, delivering a 141.5% return. The stock surged on strong quarterly results and a sharp inflection in the outlook for semi-conductor capital spending. Memory chips are now in short supply, as it has become apparent that artificial intelligence will be a massive consumer of memory. In response, major chipmakers have announced significant increases in capex, and we believe this upcycle is still in its early stages.”
Ultra Clean Holdings, Inc. (NASDAQ:UCTT) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 22 hedge fund portfolios held Ultra Clean Holdings, Inc. (NASDAQ:UCTT) at the end of the fourth quarter, compared to 23 in the previous quarter. While we acknowledge the risk and potential of Ultra Clean Holdings, Inc. (NASDAQ:UCTT) 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 Ultra Clean Holdings, Inc. (NASDAQ:UCTT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Ultra Clean Holdings, Inc. (NASDAQ:UCTT) and shared the list of stocks with 3x-5x returns this year. 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.
