The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
As of Oct 22, 2026
During the third quarter of 2026, the Wasatch Micro Cap Fund (Investor Class) delivered a net return of -12.16%, performing closely in line with the benchmark Russell Microcap Growth Index, which returned -12.15% net of fees. Relative performance was aided by positive stock selection within information technology and financials, but was dampened by adverse positioning in consumer discretionary, industrials, and materials. In response to tightening financial conditions, the strategy actively reduced consumer-oriented cyclical exposures while maintaining selective allocations to cash-generative businesses capable of self-funding growth. The investment environment was defined by macroeconomic headwinds including rising interest rates, lingering inflation concerns, geopolitical friction, and a broader correction across equities tied to the artificial intelligence buildout. The fund maintained an intentional underweight to cash-burning biotechnology companies within healthcare, seeking instead to reposition into profitable medical equipment and device makers, while leveraging financial holdings that benefit from rising yields on cash reserves. Key individual contributors included AOTI and Red Violet (RDVT), the latter benefiting from robust earnings execution and high operating leverage in identity intelligence. Conversely, performance was weighed down by ready-mix concrete provider Suncrete (RMIX) and specialty contractor Orion Group Holdings (ORN) due to severe regional weather and pushouts in data center construction schedules. Additionally, the managers exited Lincoln Educational Services (LINC) following enrollment decelerations, consolidating trade school exposure into Universal Technical Institute (UTI).
The fund focuses on bottom-up stock selection in high-growth, high-quality microcap companies with differentiated business models and positive cash flows that enable self-funded expansion.
The managers anticipate that sustained elevated interest rates will lead microcap investors to increasingly reward companies with self-funding positive cash flows.
Moderate Conviction Bullish
Market Conviction
Growth Outlook
Risk Appetite
Capital Deployment
Forward Guidance
Language Signal
Perceived Risk
Opportunity Density
Time Horizon
Top Conviction Themes
Key Catalysts
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