Brown Capital Management, an investment management company, released its first quarter 2026 investor letter for “The Brown Capital Management Small Company Fund”. A copy of the letter can be downloaded here. In the first quarter of 2026, the Small Company Fund (Investor shares) fell 19.78%, significantly lagging the Russell 2000 Growth index’s 2.81% decline. Worsened market conditions due to the Iran war, driving the oil price spike and increased volatility in equities. Despite stabilization in the performance as the quarter progressed, early declines and weakness in large positions significantly impacted the Fund’s performance. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, The Brown Capital Management Small Company Fund highlighted SiTime Corporation (NASDAQ:SITM) as a newly added position. SiTime Corporation (NASDAQ:SITM) designs and develops solutions for silicon timing systems. On June 23, 2026, SiTime Corporation (NASDAQ:SITM) closed at $706.90 per share. One-month return of SiTime Corporation (NASDAQ:SITM) was -2.66%, and its shares gained 246.94% over the past 52 weeks. SiTime Corporation (NASDAQ:SITM) has a market capitalization of $18.66 billion.
The Brown Capital Management Small Company Fund stated the following regarding SiTime Corporation (NASDAQ:SITM) in its Q1 2026 investor letter:
“We added four companies to the Small Company Fund in the first quarter of 2026—Credo Technology (CRDO), Krystal Biotech (KRYS), SiTime Corporation (NASDAQ:SITM) and Xpel (XPEL).
SiTime makes silicon-based timekeeping components that tell electronic devices when to perform critical functions at precise times. The company makes advanced silicon chips that replace old quartz crystals and keep modern electronics running in perfect rhythm, ensuring that computers, phones and wireless devices operate accurately and reliably. Almost every major chip inside modern electronics depends on accurate timing from companies like SiTime. The firm’s products are higher performing, smaller in size and more resilient to environmental stressors than quartz, positioning SiTime as a single-source provider of all the timing components required in modern electronics. This holistic approach differentiates SiTime from traditional timing suppliers who typically focus on specific components.
For fiscal year 2025, SiTime generated total revenue of $362 million, up 61% vs. a year earlier. The company is still on the path to profitability, with a GAAP EBIT margin of -21%, up from -56.9% in 2024. We are comfortable with the company’s progress to profitability, given improving margins.”
SiTime Corporation (NASDAQ:SITM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 54 hedge fund portfolios held SiTime Corporation (NASDAQ:SITM) at the end of the first quarter, up from 41 in the previous quarter. SiTime Corporation (NASDAQ:SITM) reported strong Q1 2026 revenue of $113.6 million, an increase of 88% year-over-year. While we acknowledge the risk and potential of SiTime Corporation (NASDAQ:SITM) 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 SiTime Corporation (NASDAQ:SITM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered SiTime Corporation (NASDAQ:SITM) and shared the list of best multibagger stocks to buy in 2026. 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.
