Polen Capital, an investment management company, released its first-quarter 2026 investor letter for “Polen 5Perspectives Small-Mid Growth Strategy”. A copy of the letter can be downloaded here. Polen 5Perspectives Small-Mid Composite Portfolio returned -3.4% gross and -3.6% net of fees, respectively, in the first quarter of 2026, compared to the -3.5% return of the Russell 2500 Growth Index. Rapidly shifting, marked narrative-driven volatility stemmed in the first quarter. Initial concerns centered on AI disruption in software and the related “HALO” trade, followed by rising private credit worries, culminating in geopolitical risks stemming from the war in Iran. The firm expects ongoing volatility in the foreseeable future. The firm believes the SMID-cap universe in the US consists of innovative, dynamic companies, and the portfolio performance is driven by the accelerating pace of change. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Polen 5Perspectives Small-Mid Growth Strategy highlighted Affirm Holdings, Inc. (NASDAQ:AFRM). Affirm Holdings, Inc. (NASDAQ:AFRM) is a leading financial technology company that offers point-of-sale payment solution for consumers, commerce solutions for merchants, and a consumer-focused app. On June 18, 2026, Affirm Holdings, Inc. (NASDAQ:AFRM) closed at $73.92 per share. One-month return of Affirm Holdings, Inc. (NASDAQ:AFRM) was 13.34%, and its shares gained 19.11% over the past 52 weeks. Affirm Holdings, Inc. (NASDAQ:AFRM) has a market capitalization of $24.76 billion.
Polen 5Perspectives Small-Mid Growth Strategy stated the following regarding Affirm Holdings, Inc. (NASDAQ:AFRM) in its Q1 2026 investor letter:
“The most significant detractors from the Portfolio’s relative performance in the quarter were SoFi Technologies , Figure Technology Solutions , and Affirm Holdings, Inc. (NASDAQ:AFRM). Finally, Affirm Holdings is another fintech company albeit with a focus on “Buy Now, Pay Later” installment-based consumer loans. During the quarter, shares underperformed as investor sentiment toward consumer lending remained pressured amid interest rate volatility and macro uncertainty. While the company continues to deliver strong gross merchandise volume growth and expand merchant partnerships, concerns around funding costs, credit performance, and the sustainability of margins weighed on performance. Additionally, broader weakness across fintech and consumer discretionary-exposed names contributed to the stock’s relative underperformance.”
Affirm Holdings, Inc. (NASDAQ:AFRM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 61 hedge fund portfolios held Affirm Holdings, Inc. (NASDAQ:AFRM) at the end of the first quarter, compared to 63 in the previous quarter. While we acknowledge the risk and potential of Affirm Holdings, Inc. (NASDAQ:AFRM) 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 AFFIRM HOLDINGS, INC. (NASDAQ:AFRM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Affirm Holdings, Inc. (NASDAQ:AFRM) 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.
