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 Asana, Inc. (NYSE:ASAN). Asana, Inc. (NYSE:ASAN) is a leading cloud-based work management software solutions provider that enables teams to organize, track, and manage projects. On June 2, 2026, Asana, Inc. (NYSE:ASAN) closed at $8.68 per share. One-month return of Asana, Inc. (NYSE:ASAN) was 16.69%, and its shares lost 47.25% over the past 52 weeks. Asana, Inc. (NYSE:ASAN) has a market capitalization of $1.84 billion.
Wasatch Long/Short Alpha Fund stated the following regarding Asana, Inc. (NYSE:ASAN) in its Q1 2026 investor letter:
“Among short positions, contributors to Fund performance were those stocks that declined in price. The largest contributor on the short side was Asana, Inc. (NYSE:ASAN). The company is best known for its cloud-based work management platform, which helps teams organize, track, and manage projects, tasks and workflows. Software stocks such as Asana’s sold off broadly in the first quarter due to concerns that AI could displace some software services. When it comes to Asana, we believe it would be fairly easy for AI or a competitor to replicate its services. While we maintained a short position, we reduced it during the quarter after the stock sold off.”
Asana, Inc. (NYSE:ASAN) 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 Asana, Inc. (NYSE:ASAN) at the end of the first quarter, up from 34 in the previous quarter. While we acknowledge the risk and potential of Asana, Inc. (NYSE:ASAN) 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 Asana, Inc. (NYSE:ASAN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Asana, Inc. (NYSE:ASAN) and shared the list of stocks entering June on fire. 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.
