Jacob Funds, a mutual fund company, released its first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The Fund started the year optimistically, expecting fiscal and monetary policies to boost an economy showing mixed signals. However, rapid AI developments and a Middle East conflict caused one of the worst quarters since COVID. Market turbulence led to widespread tech sell-offs, blurring lines between at-risk and AI-benefiting firms. AI prompts critical long-term questions for the tech industry, with emerging agentic AI promising a new wave of innovation similar to the late 1990s dot-com boom. Recent market weakness allowed the Fund to invest in promising beneficiaries at better prices, creating an opportunity to pivot into names with potential for rapid growth and profits as agentic AI moves from niche to broad adoption. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, Jacob Funds highlighted CrowdStrike Holdings, Inc. (NASDAQ:CRWD) as a new addition to the Jacob Internet Fund. Headquartered in Austin, Texas, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leading cybersecurity technology company. On April 9, 2026, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) closed at $394.68 per share. One-month return of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) was -10.66%, and its shares gained 4.44% over the past 52 weeks. CrowdStrike Holdings, Inc. (NASDAQ:CRWD) has a market capitalization of $100.09 billion.
Jacob Funds stated the following regarding CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its Q1 2026 investor letter:
“The Jacob Internet Fund added four new positions in the quarter, Circle Internet Group, CrowdStrike Holdings, Inc. (NASDAQ:CRWD), Reddit and Robinhood. CrowdStrike is a leading cloud-native cybersecurity company delivering endpoint protection, threat intelligence, and incident response through its Falcon platform. Because CrowdStrike already operates as a real-time control layer where autonomous AI agents will need to be secured, it can monitor both human and non-human actors within the same architecture. Enterprises will need to upgrade their security requirements from only endpoint and perimeter concerns to protecting themselves from agents that will need to have access to their systems, making CrowdStrike a critical enabler of safe enterprise adoption of agentic AI.”
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 67 hedge fund portfolios held CrowdStrike Holdings, Inc. (NASDAQ:CRWD) at the end of the fourth quarter, up from 66 in the previous quarter. While we acknowledge the risk and potential of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) 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 CrowdStrike Holdings, Inc. (NASDAQ:CRWD) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered CrowdStrike Holdings, Inc. (NASDAQ:CRWD) and shared the list of stocks Jim Cramer discussed. 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.
