Schafer Cullen Capital Management, Inc., an independent investment advisor, released its Q1 2026 investor letter for the “Small Cap Value Equity Strategy.” You can download a copy of the letter here. U.S. equity markets started 2026 with notable volatility due to geopolitical events and shifting macro conditions. The Russell 2000 rose 0.9% for the quarter, with small-cap value outperforming growth. Concerns over AI and its impact on software companies heightened among investors. The Small Cap Value Equity strategy composite returned -1.8% (gross) and -2.0% (net) in the quarter, while the Russell 2000 Value returned 5.0% for the quarter, and the broader Russell 2000 Index gained 0.9%, reflecting strength in small caps. The performance in the quarter was shaped by rising interest rates, widening credit spreads, and geopolitical tensions. Overall, the quarter challenged quality-oriented strategies, yet the firm remains committed to investing in companies with strong balance sheets and sustainable earnings, believing this focus will benefit as market conditions improve. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Schafer Cullen Capital Small Cap Value Equity Strategy highlighted Barrett Business Services, Inc. (NASDAQ:BBSI). Barrett Business Services, Inc. (NASDAQ:BBSI) is a US-based business management solutions provider for small and mid-sized companies. On June 1, 2026, Barrett Business Services, Inc. (NASDAQ:BBSI) closed at $33.78 per share. One-month return of Barrett Business Services, Inc. (NASDAQ:BBSI) was 11.23%, and its shares lost 18.97% over the past 52 weeks. Barrett Business Services, Inc. (NASDAQ:BBSI) has a market capitalization of $829.62 million.
Schafer Cullen Capital Small Cap Value Equity Strategy stated the following regarding Barrett Business Services, Inc. (NASDAQ:BBSI) in its Q1 2026 investor letter:
“Barrett Business Services, Inc. (NASDAQ:BBSI) provides outsourced human resources, payroll, and professional employer organization (PEO) services to small and mid-sized businesses. The company operates a differentiated, decentralized model that emphasizes local client relationships and disciplined underwriting, which has historically resulted in strong client retention and attractive margins. BBSI generates consistent cash flow and maintains a conservative balance sheet, providing flexibility across economic cycles. As labor markets stabilize and small business formation and employment trends improve, we expect the company to benefit from operating leverage and continued expansion in its core markets.”
Barrett Business Services, Inc. (NASDAQ:BBSI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 24 hedge fund portfolios held Barrett Business Services, Inc. (NASDAQ:BBSI) at the end of the first quarter, compared to 29 in the previous quarter. While we acknowledge the risk and potential of Barrett Business Services, Inc. (NASDAQ:BBSI) 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 Barrett Business Services, Inc. (NASDAQ:BBSI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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.
