| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 19.62% | 4.18% | 4.18% |
GROW Small Cap Equity Long/Short delivered 4.18% in Q1 2026, outperforming the Russell 2000 Growth Index which declined 2.80%. The fund successfully navigated volatility from the Iran War through strategic hedging, including index puts and individual shorts. Key contributors included Buda Juice, a Texas-based organic beverage company expanding capacity and distribution, Paysign, which beat earnings expectations and trades at attractive valuations, and Tigo Energy, benefiting from improved solar economics due to higher energy prices. The manager expressed skepticism about AI infrastructure investments, comparing current dynamics to the dot-com bubble, and shorted overvalued names like Palantir and Astera Labs. Oil prices surged 59% due to the conflict, creating both inflationary risks and opportunities in energy-related sectors. The fund maintains a focus on small-cap companies with strong growth prospects while remaining cautious about elevated market valuations reminiscent of 2000 and 2021 levels.
GROW focuses on small-cap companies with new products, large market opportunities, and high revenue growth with strong margins, while using hedging strategies to navigate market volatility.
Manager continues to see tremendous investment opportunities in the market by screening for companies with new products and services, large market opportunities, and high revenue growth with strong margins. While cautiously monitoring macroeconomic events, they believe their time is best spent looking for new ideas.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| May 4 2026 | 2026 Q1 | ALAB, BUDA, DUOT, HOOD, HROW, ISRG, PAYS, PLTR, PROF, TYGO | AI, Hedging, Iran War, Long/Short, oil, small cap, Solar, Valuations |
BUDA PAYS TYGO DUOT PROF |
GROW delivered 4.18% in Q1 2026 through successful hedging during the Iran War and selective long positions in small-cap growth stories like Buda Juice and Tigo Energy. The manager remains skeptical of AI infrastructure valuations while capitalizing on energy sector opportunities from higher oil prices. |
| Jan 15 2026 | 2025 Q4 | AMZN, AXSM, CSCO, FENC, GENI, GOOGL, INDV, MAMA, MDXH, META, MSFT, NPCE, NTNX, NVDA, ORCL, SEMR, XERS | AI, Biotechnology, growth, healthcare, Pharmaceuticals, Rate Cuts, small caps, valuation |
MAMA AXSM MDXH |
GROW Funds rotated to healthcare overweight positioning while delivering strong 2025 returns. Manager sees opportunities in small-cap growth companies with new products despite elevated market valuations. Skeptical of AI infrastructure bubble but optimistic about Fed rate cuts benefiting small companies. Focus remains on active stock selection over passive investing. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
AIManager expresses skepticism about AI infrastructure investments by hyperscalers, comparing current dynamics to the telecom boom and dot-com era. While acknowledging AI will increase productivity, they believe capabilities may be less than expected and focus on companies using AI to improve business models rather than infrastructure plays. |
Infrastructure Hyperscalers Productivity Valuations Bubble |
OilOil prices increased 59% from $72.50 to $115 per barrel due to the Iran War and closure of the Strait of Hormuz. Manager believes longer closure duration will worsen the situation, with higher energy prices filtering into other goods like fertilizer and food. |
Iran War Strait of Hormuz Supply Geopolitics Inflation | |
SolarSolar's value proposition has improved significantly due to increased energy prices from the Iran War. Manager believes TYGO will benefit from this trend as the low-cost provider for solar inverters, taking share from higher-priced competitors like Enphase and SolarEdge. |
Energy Prices Inverters Market Share Competition Value Proposition | |
SemiconductorsManager shorted semiconductor names like Astera Labs due to unsustainable valuations, with ALAB trading at over 57 times 2026 earnings despite decelerating growth rates. They view current multiples as excessive given the growth deceleration. |
Valuations Growth Deceleration Multiples AI Demand Overvaluation | |
| 2025 Q4 |
Small CapsThe fund operates a concentrated Micro and Small-Cap strategy that naturally diverges from market indexes. Portfolio consists of ~60% businesses with market caps below $500M, with top five positions accounting for ~60% of the portfolio. |
Microcap Small Cap Concentration |
QualityManager has pivoted the portfolio more towards quality names, a shift first called out in Q1-2025 letter. This represents an evolution in investment approach while maintaining core philosophy. |
Quality Evolution Investment Philosophy |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| May 4, 2026 | Fund Letters | GROW Funds | BUDA | Buda Juice Inc. | Beverages - Non-Alcoholic | Soft Drinks | Bull | NASDAQ | capacity expansion, Cold Chain Distribution, growth, IPO, Organic Beverages, small-cap, Supermarket Retail, Texas Market, Ultra-Fresh Category | Login |
| May 4, 2026 | Fund Letters | GROW Funds | PAYS | Paysign Inc. | Software - Infrastructure | Data Processing & Outsourced Services | Bull | NASDAQ | cash generation, earnings beat, Fintech, healthcare, payment processing, pharmaceuticals, Prepaid Cards, Value | Login |
| May 4, 2026 | Fund Letters | GROW Funds | TYGO | Tigo Energy, Inc. | Solar | Electronic Equipment & Instruments | Bull | NASDAQ | Cyclical Recovery, energy storage, Inverters, Iran War Impact, Low-cost Provider, market share gains, Module Level Power Electronics, Solar Energy | Login |
| May 4, 2026 | Fund Letters | GROW Funds | DUOT | Duos Technologies Group Inc. | Software - Application | Technology Hardware, Storage & Peripherals | Bull | NASDAQ | business transformation, data centers, Discovery Play, Edge AI, High Growth, Modular Infrastructure, Rapid Deployment, recurring revenue | Login |
| May 4, 2026 | Fund Letters | GROW Funds | PROF | Profound Medical Corp. | Medical Devices | Health Care Equipment | Bull | NASDAQ | Clinical Superiority, growth, Hospital Systems, Medical devices, Minimally Invasive, MRI-Guided Surgery, Prostate Cancer, Reimbursement Advantage | Login |
| Jan 15, 2026 | Fund Letters | Mike Collins | MAMA | Mama’s Creations, Inc. | Consumer Staples | Packaged Foods | Bull | NASDAQ | Branding, Distribution, Food, growth, Margins | Login |
| Jan 15, 2026 | Fund Letters | Mike Collins | AXSM | Axsome Therapeutics, Inc. | Health Care | Biotechnology | Bull | NASDAQ | Biotech, CNS, Druglaunch, FDA, Optionality | Login |
| Jan 15, 2026 | Fund Letters | Mike Collins | MDXH | MDxHealth S.A. | Health Care | Diagnostics & Research | Bull | NASDAQ | diagnostics, Genomics, growth, Oncology, valuation | Login |
| TICKER | COMMENTARY |
|---|---|
| BUDA | Buda Juice Inc. (BUDA) produces and distributes beverages made from organic fruits and vegetables. The company bridges the gap between shelf-stable products and operationally challenging in-store juicing. The product assortment includes juices, lemonades, limeades, and wellness shots. Buda Juice is known for no pasteurization, preservatives, GMOs, or artificial ingredients and is sold in the fresh department in supermarkets. In short, BUDA is creating a new ultra-fresh category within the supermarket. All products are produced and delivered in a continuous 35-degree Fahrenheit cold chain from farm to fridge. Currently, BUDA is produced and distributed in only Texas supermarkets including Costco, HEB, and Kroger. Last year, they generated about $12 million in annual revenue and $3.6 million in net income. The company is in the process of expanding capacity in Texas to $55 million by adding additional production lines. We believe Buda can be a $25 stock as the company executes just within Texas. We anticipate BUDA adding additional production and distribution locations in the Southeast U.S. and Southwest U.S. in the next 2 years, giving them capacity for up to $165 million in annual revenue. We believe Buda will be able to fill this expanded capacity with current and future retailer wins, none of which have fully scaled. The company's recent IPO at $7.50 was well received, and the IPO proceeds helped them fund the capacity expansion. Management and the Board of Directors remain significant shareholders of the company and in total own 65% after the IPO. The company has a long runway of growth, limited competition, and is under the radar for most investors due to having no sell side analyst coverage since their recent IPO. We view the story as similar to MAMA which has been a multi-bagger for GROW since owning from $2.50 to $15 per share over the last 2 years. |
| PAYS | Paysign Inc. (PAYS) operates a vertically integrated prepaid card payment solutions and processing business, primarily serving the pharmaceutical and healthcare sectors. The company manages the entire prepaid card lifecycle—design, issuance, and processing—generating revenue through transaction fees, cardholder fees, program management fees, and funds breakage. Paysign stock had underperformed significantly in January and February due to AI fears and pharmaceutical disruption from the Trump Administration. On March 24th, PAYS reported their Q4 2025 Earnings which proved these fears to be overblown. They beat expectations significantly on the top and bottom lines as well as raised guidance for 2026. The stock remains inexpensive at 7x EV/EBITDA while growing revenues 40% last year. We believe this trajectory can continue as management executes. With their excess cashflow, we believe PAYS could begin paying a dividend or buying back shares to return capital to shareholders. |
| TYGO | Tigo Energy, Inc. (TYGO) operates as a leading provider of intelligent solar and energy storage solutions, focusing on Module Level Power Electronics (MLPE) to maximize solar array performance. Their business model revolves around developing, manufacturing, and selling hardware (optimizers, inverters) and software (monitoring platforms) to installers and distributors globally. Prior to 2025, the solar industry had experienced multiple down years, especially in residential markets. With the increase in energy prices due to the Iran War, Solar's value proposition has improved significantly. We believe TYGO will benefit from this trend and as they remain the low cost provider for solar inverters. TYGO can continue to take share from Enphase Energy (ENPH) and SolarEdge Technologies (SEDG) who are growing slower and have more expensive valuations. |
| HROW | Harrow (HROW) develops ophthalmic therapies, helping patients manage chronic and acute eye conditions. While we like the company and its growth prospects, we thought that there was a disconnect in high street earnings expectations versus the underlying growth of the company. HROW disappointed on earnings and we covered the position. |
| PLTR | Palantir Technologies (PLTR) is a data analytics company used by governments, militaries, and large corporations to find patterns and insights. The stock trades for 66x EV/Revenues on 2026 expectations, by far the most expensive software company in the market. While the earnings have seen positive revisions throughout the year, we purchased put options on the stock multiple times on overvaluation and AI exuberance in the market as discussed above. We also shorted Palantir outright during the quarter. |
| HOOD | Robinhood Markets (HOOD) is a stock brokerage platform that offers commission free trading of stocks, ETFs, options, and cryptocurrencies through a mobile-first platform designed to democratize finance. Its platform appeals to young, digitally native investors (Gen Z and Millennials). We shorted HOOD as it was the highest valued brokerage stock relative to peers. In addition, we felt that the retail investing crowd was stretched as evidenced by the decline in Bitcoin. |
| ALAB | Astera Labs (ALAB) is a fabless semiconductor company that develops high-speed connectivity hardware and software for cloud and AI data-center infrastructure. The company specializes in PCIe, CXL, and Ethernet-based solutions designed to eliminate data, memory, and networking bottlenecks in accelerated computing environments. Astera had run up due to AI demand to a PE of over 57 times 2026 earnings. While revenue and earnings are continuing to grow, the rates of growth are decelerating and we thought that the P/E multiple was not sustainable. |
| ISRG | Intuitive Surgical, Inc. (ISRG) medical technology company that develops, manufactures, and markets robotic systems for minimally invasive surgery, most notably the da Vinci Surgical System. The company is a global leader in robotic-assisted surgery, providing advanced platforms, instruments, and digital tools that help physicians perform precise, minimally invasive procedures. ISRG was trading at or near the highest multiple of revenues and earnings ever. We felt that these multiples were unsustainable given the increased competitive landscape. |
| DUOT | Duos Technologies Group Inc. (DUOT) historically operated as a railcar inspection business. In July of 2024, Duos announced they would begin providing Edge AI Data Center solutions. Duos designs and deploys modular edge data centers to bring processing power closer to where data is generated. Transformational growth began in Q1 this year when the company posted 363% revenue growth year-over-year. The addition of the data center business drove growth as demand for the data centers and power is extremely high. The company deployed 15 data centers in 2025 and expects to deploy many more in 2026. This rapid deployment will deliver scalable compute power and high-speed connectivity to customers in as little as 90 days. Duos provides these modular data centers on a rental basis, so the revenue is recurring in nature. We believe many investors are unaware of the transformation made within the business and there is more upside as discovery happens. |
| PROF | Profound Medical Corp. (PROF) is a commercial-stage medical device company advancing incision-free, MRI-guided, and robotically-driven technologies to treat prostate cancer and benign prostatic hyperplasia (BPH). Their lead technology, TULSA-PRO®, utilizes real-time MRI and thermal ultrasound to precisely ablate prostate tissue while preserving surrounding structures, aiming to minimize side effects like incontinence and impotence. Profound currently has 78 systems at marque hospitals, with a pipeline of over 110 systems. Reimbursement to the hospital is currently higher than competitive procedures. In addition, recent results from the Captain Trial demonstrate better outcomes than radical prostatectomy which is done primarily using the DaVinci robotic surgical system developed by Intuitive Surgical. Cook Medical and Siemens recently introduced their new iMRI suite, on which TULSA-PRO procedures can be performed. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
