White Brook Capital Partners, an investment management firm, released its first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The letter indicated that the first quarter of 2026 was a turnaround period. During this quarter, US military actions against Iran and developments in AI dominated economic discussions. These military interventions created a challenging environment for businesses in the following year, due to increased inflation, oil prices, and debt levels. Meanwhile, the outlook for AI remains uncertain and hard to forecast. In addition, please check the Firm’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, White Brook Capital Partners highlighted stocks like Sanara MedTech Inc. (NASDAQ:SMTI). Sanara MedTech Inc. (NASDAQ:SMTI) is a medical technology company that develops and distributes surgical solutions to physicians, hospitals, clinics, and post-acute care settings. On April 22, 2026, Sanara MedTech Inc. (NASDAQ:SMTI) closed at $19.96 per share. One-month return of Sanara MedTech Inc. (NASDAQ:SMTI) was 10.83%, and its shares lost 37.61% over the past 52 weeks. Sanara MedTech Inc. (NASDAQ:SMTI) has a market capitalization of $182.97 million.
White Brook Capital Partners stated the following regarding Sanara MedTech Inc. (NASDAQ:SMTI) in its Q1 2026 investor letter:
“Sanara MedTech Inc. (NASDAQ:SMTI) continues to be an extremely favorable risk reward. On their fourth quarter call they offered revenue guidance of 13-17% growth in line with sell side expectations but below the 20% some hoped for. At their valuation, we believe the forecasted growth to be more than good enough and likely to be revised upward. Perhaps underappreciated is that Sanara’s products are largely distributed by third parties who, to be effective, need to be at a hospital for a procedure – to ensure Sanara’s products are used. The more doctors who use their product at a specific location, the more reliably distributors show up to distribute their products. With increasing evidence of their product’s efficacy recently released and a focus on increasing per hospital doctor penetration, we continue to believe that there is significant room for sustained growth rate acceleration.
Negatively, Chemo Mouthpiece, their JV with InfuSystem did not receive upgraded coding from CMS under the durable medical equipment payment structure. While the subsidiary is well capitalized and is likely to press on, that upside option is likely a much smaller opportunity, and may be impaired. Hopefully it closes the book on the old management team’s efforts. We continue to believe the upside present is a multiple of the current share price and that the company is now exceptionally well led.”
Sanara MedTech Inc. (NASDAQ:SMTI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 5 hedge fund portfolios held Sanara MedTech Inc. (NASDAQ:SMTI) at the end of the fourth quarter, compared to 6 in the previous quarter. Sanara MedTech Inc. (NASDAQ:SMTI) achieved net revenue of $103.1 million in 2025, exceeding $100 million for the first time and increasing 19% year-over-year. While we acknowledge the risk and potential of Sanara MedTech Inc. (NASDAQ:SMTI) 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 Sanara MedTech Inc. (NASDAQ:SMTI) 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.
