Wasatch Global Investors, an asset management company, released its “Small Cap Growth Strategy” Q1 2026 investor letter. A copy can be downloaded here. The Wasatch Small Cap Growth Strategy lagged the benchmark, Russell 2000® Growth Index, in the quarter, which returned -2.81%. U.S. small-cap stocks were volatile in the quarter, due to shifting investor sentiment. Enthusiasm for artificial intelligence continued to support infrastructure buildout companies, but it triggered sell-offs in stocks of industries deemed vulnerable to AI disruption. Geopolitical tensions further contributed to the market swings. In this volatile environment, the firm remains focused on identifying companies with sustainable competitive advantages. In addition, you can check the Fund’s top 5 holdings for its best picks for 2026.
In its first-quarter 2026 investor letter, Wasatch Small Cap Growth Strategy highlighted Everus Construction Group, Inc. (NYSE:ECG). Everus Construction Group, Inc. (NYSE:ECG) is a US-based contracting services company operating through its Electrical & Mechanical and Transmission & Distribution segments. On June 18, 2026, Everus Construction Group, Inc. (NYSE:ECG) closed at $157.71 per share. One-month return of Everus Construction Group, Inc. (NYSE:ECG) was 6.09%, and its shares gained 166.49% over the past 52 weeks. Everus Construction Group, Inc. (NYSE:ECG) has a market capitalization of $8.05 billion.
Wasatch Small Cap Growth Strategy stated the following regarding Everus Construction Group, Inc. (NYSE:ECG) in its Q1 2026 investor letter:
“Everus Construction Group, Inc. (NYSE:ECG) was another top contributor. The company provides electrical and mechanical contracting services, as well as power transmission and distribution construction. The stock rose following the company’s reporting of fourth-quarter and full-year 2025 results, which included a record year-end backlog and profit and revenue growth that exceeded consensus expectations. Management highlighted strong demand and bidding activity across data centers, high-tech, hospitality and utility markets. Looking ahead, we believe demand for the services Everus provides will remain strong, particularly as data centers require increasing energy capacity to support the expansion of AI.”
Everus Construction Group, Inc. (NYSE:ECG) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 44 hedge fund portfolios held Everus Construction Group, Inc. (NYSE:ECG) at the end of the first quarter, up from 42 in the previous quarter. While we acknowledge the risk and potential of Everus Construction Group, Inc. (NYSE:ECG) 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 EVERUS CONSTRUCTION GROUP, INC. (NYSE:ECG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Everus Construction Group, Inc. (NYSE:ECG) and shared the list of best construction stocks for data center infrastructure. 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.
