QuantStreet maintains systematic US/international diversification with bullish US view driven by AI infrastructure buildout, fiscal stimulus, and M&A cycle. Weaker dollar thesis supports international allocation despite recent strength. Iran War energy spike viewed as temporary. Private credit stress creates future opportunities. Neural network models guide risk management with targeted exposures maintained.

Sea Limited delivered record Q1 2026 results with 47% revenue growth and first-time $1 billion adjusted EBITDA. All three businesses accelerating: Shopee achieving 30% GMV growth with expanding take rates, Digital Financial Services scaling 71% loan book growth while maintaining asset quality, and Garena returning to 20% bookings growth after multi-year decline.

Reams Asset Management sees the Iran conflict as creating investment opportunity rather than cause for fear. Real rates near 3% are objectively attractive at cycle highs, while asset prices have cheapened meaningfully. The manager emphasizes disciplined positioning based on current valuations rather than unpredictable geopolitical forecasting, expressing optimism about client outcomes.

Diranko Capital posted -7.1% in Q1 2026 due to market volatility around Middle East conflicts and short-term focused quantitative trading, despite strong underlying fundamentals. Manager maintains high conviction in deep value approach targeting obscure small caps, citing Western Investment Company as successful example. Portfolio rebalanced toward deeper value opportunities with confidence in long-term outperformance through patient capital structure.

Brummer Multi-Strategy's diversified approach provided resilience during March's Iran war-driven energy crisis, with systematic trend following capturing gains in oil and gas futures while equity strategies faced deleveraging headwinds in crowded tech sectors. The fund's ability to quickly adapt positioning across multiple strategies helped navigate the volatile environment.

Thornburg Global Opportunities outperformed in Q1 2026 with a 3.16% return versus -3.20% for global markets, extending its 20-year track record of beating benchmarks by over 3% annually. The focused 39-stock portfolio trades at a 12.6x P/E discount to markets while generating superior revenue growth, with strong contributions from semiconductors, telecom, and energy holdings.

Iran conflict and Strait of Hormuz closure drove sharp March selloffs, with oil surging above $118 and global equities declining broadly. Fed held rates steady amid inflation concerns while AI-driven capex supports underlying growth. Private credit shows software sector stress but broader resilience. Late-month rebound on de-escalation hopes, though uncertainty remains elevated.

Markets face binary outcomes from Iran's Hormuz blockade creating the largest energy disruption since WWII. Oil up 68% threatens global supply chains from semiconductors to fertilizers. Electoral pressures and Iran's economic collapse provide resolution incentives, but prolonged crisis risks recession. Recovery possible if shipping resumes, otherwise deepening economic damage likely.

Gulf war creates persistent energy supply disruptions driving stagflationary pressures and central bank policy dilemmas. USD gained 2.6% since conflict start but remains overvalued. QCAM maintains neutral macro positioning amid geopolitical uncertainty while shifting business sentiment 30% long USD. FX volatility expected to continue as markets bounce between escalation fears and de-escalation hopes.

MPD Partners operates a specialized SME private equity strategy with two portfolio companies. LCP, a profitable Swiss insurance brokerage, generated positive cash flow while expanding capabilities and pursuing wealth management authorization. The firm is developing proprietary lead generation software and launching a new Swiss acquisition vehicle in H2 2026.

Human Capital Fund down 13% in Q1 2026 as Middle East conflict pressured small-cap growth stocks. Despite volatility, portfolio companies show strong fundamentals with 19% earnings growth in 2025 and 12% expected in 2026. Added Japanese business acquirer NGTG and German software firm Nemetschek at attractive valuations during market weakness.

Protean capitalized on March's geopolitical volatility through active trading while making a structural bet on European energy transition via heat pump manufacturer Nibe. The Nordic hedge fund delivered positive returns despite broad market declines, validating its risk management approach. Management remains cautious but is gradually increasing exposure as price-value disconnects create opportunities independent of geopolitical outcomes.

Oak Ridge navigated Q1 2026 geopolitical turmoil by positioning around AI infrastructure opportunities while managing energy-driven inflation risks. Strong performance from data center power providers offset broader tech corrections. The firm eliminated weak positions and increased AI-adjacent exposure, viewing current conditions as favorable for disciplined stock selection despite near-term volatility.

Concentrated small-cap healthcare value fund delivered strong long-term returns despite Q1 underperformance. Avanos Medical takeout at 72% premium exemplifies M&A-driven value realization strategy. New Theravance position offers 60% upside potential from COPD royalties. Nine-position portfolio targets undervalued medical device and pharmaceutical companies with M&A catalysts expected to drive future returns.

Small-caps extended their leadership in 1Q26 despite geopolitical volatility, with Russell 2000 up 0.9% while large-caps declined. Royce sees compelling long-term opportunities driven by near 25-year low relative valuations, superior earnings growth forecasts, and structural tailwinds from infrastructure spending and AI adoption. Current environment offers attractive entry point for patient capital.

Nordic fund manager navigates Middle East crisis by actively trading volatility-driven disconnects while positioning for structural energy transition catalyst. Meaningful Nibe investment reflects conviction that European energy independence will drive heat pump demand regardless of conflict outcome. Hedged strategies provided downside protection during market stress, demonstrating value of active management over passive indexing.

Night Watch delivered 2.69% in volatile Q1 2026 by owning counter-cyclical businesses that benefit from uncertainty. Strong performance from Brookdale senior living, AAR aerospace maintenance, and Marex futures clearing. Portfolio positioned to withstand geopolitical risks while benefiting from demographic trends, defense spending, and market volatility rather than trying to time unpredictable events.

Penn Davis McFarland capitalized on AI-driven volatility to add Salesforce while benefiting from energy and defense positions amid Iran's Strait of Hormuz blockade. The 400-million-barrel supply shortfall advantages U.S. energy dominance but threatens global inflation and Fed rate hikes. Strong balance sheets and cash reserves position the portfolio for continued volatility.

Q1 2026 saw oil prices surge 70% due to Middle East tensions, driving S&P 500 down 4.3% while smaller companies outperformed. AI disruption fears hammered software stocks down 30%. Federal Reserve rate cut expectations evaporated amid inflation concerns. Despite volatility, earnings estimates continued rising, suggesting market decline reflects geopolitical uncertainty rather than fundamental weakness.

Palm Valley delivered modest gains while maintaining 77% cash amid AI disruption fears and geopolitical volatility. The fund holds undervalued small-caps including embattled staffing companies and defensive positions like Rayonier timberland. Managers remain skeptical of extreme AI displacement scenarios, viewing current fears as creating opportunities in quality businesses trading at significant discounts to intrinsic value.

Aptus maintains conviction in risk assets despite Q1 volatility from Iran conflict and AI disruption. Strong earnings fundamentals with S&P 500 posting record 5th straight quarter of double-digit growth and attractive valuations below historical averages support the investment case. Markets historically recover from geopolitical shocks, making current weakness a buying opportunity for patient investors.

Thematic investment manager discusses momentum investing's historical 5x outperformance in US markets while taking defensive action against expensive valuations. Reduced US exposure, increased Europe/Japan/China/Canada allocations, lowered beta, added industrial metals and gold. Expects lower US returns ahead but acknowledges booms require unexpected catalysts to end, not just expensive valuations.

Generation acknowledges sustainable investing faces political backlash and performance challenges but argues the energy transition continues gaining strength with clean energy dominating new capacity additions globally. The firm sees current difficulties as a retooling period, maintaining that sustainability remains essential to fiduciary duty and long-term investment success.

Recurve declined 8.0% in March amid Iran war-driven oil supply shocks, bringing YTD performance to -18.2%. Manager made no trades, holding concentrated positions led by 47.7% Carvana allocation. Expects transitory inflation impacts rather than permanent earnings damage. Portfolio targets differentiated companies with operating leverage capable of growth despite macro headwinds.

Baron Global Advantage delivered 26.4% returns in 2024, outperforming benchmarks through concentrated bets on AI transformation leaders. With SpaceX as the largest holding and strong positions in Shopify, NVIDIA, and Cloudflare, the fund is positioned for the multi-trillion dollar AI revolution that manager Alex Umansky compares to the internet's early days.

Shelton Emerging Markets outperformed despite Iran shock disruption, with AI infrastructure beneficiaries Samsung and Chroma ATE driving returns while oil-sensitive India holdings detracted. Strong stock selection overcame factor headwinds from energy underweighting. Post-selloff valuations create compelling opportunities for patient capital focused on structural themes including Asian technology supply chains and infrastructure buildout.

Fidelity Dividend Growth Fund outperformed during Q1 market volatility through strong tech stock selection and energy overweight. Manager maintains conviction in AI transformation theme and energy sector fundamentals. Key positions include data storage leaders Western Digital and Seagate, power generation via GE Vernova, and aerospace recovery play Boeing as largest overweight.

Q1 2026 brought volatility from four converging forces: Middle East conflicts driving oil to $120, inflation resurgence shifting Fed expectations, AI infrastructure boom straining private credit markets, and uncertainty over AI's job impact. Pittenger & Anderson maintains disciplined focus on high-quality companies with durable advantages, emphasizing diversification over speculation during this period of rapid innovation and geopolitical tension.

Hood River outperformed by 576bps in Q1 2026 through disciplined stock selection, particularly benefiting from AI-focused positioning while avoiding traditional software. Despite geopolitical volatility and energy price spikes, management maintains bottom-up approach without tactical shifts. Small/mid-cap valuations appear attractive below historical premiums, creating opportunities in current dispersed market environment for research-intensive processes.

Hood River Small Cap Growth Fund outperformed by 819 bps in Q1 2026 through disciplined stock selection, particularly benefiting from AI-levered holdings while avoiding traditional software. Despite geopolitical uncertainty and oil price volatility from Iran conflict, managers maintain bottom-up research focus, seeing current macro-driven dispersion as historically favorable environment for identifying mispriced opportunities with strong fundamentals.

AVI Global Trust fell 9.8% in March as Iran war volatility widened portfolio discounts to 42%. Asian exposure hurt performance with Samsung C&T the main detractor despite position additions. Vivendi's prolonged decline continues while News Corp contributed positively. Manager sees attractive long-term returns from current wide discounts and solid fundamentals.

Emerald's concentrated strategy returned -3.57% in Q1 as Iran tensions boosted energy and defense holdings while software stocks crashed in AI fears. The manager opportunistically added to quality software names trading below fair value, viewing the SaaSapocalypse as indiscriminate selling. Long-term thesis unchanged: compound wealth through high-quality businesses bought at attractive prices.

Hood River delivered exceptional Q1 performance (+10.79% vs -0.48% benchmark) by capitalizing on dislocated international small-caps. Iran conflict created temporary volatility but compelling entry points for quality businesses. Fund tactically shifted from Japan to Australia/India, targeting power infrastructure and data center opportunities. Management views current environment as ideal for disciplined, long-term investors.

Bailard's international strategy outperformed during Q1's geopolitical shock, generating 1.32% net returns versus MSCI EAFE's -1.24% decline. Middle East conflict drove energy prices up 94%, benefiting Norway while hurting cyclicals. The all-weather approach enabled tactical positioning adjustments, trimming European banks/industrials while adding energy exporters. Strong performance in Korea and Taiwan on AI themes.

Elm Ridge validates their contrarian calls on rising rates and private credit risks while advocating for asset-heavy value investments over growth compounders. Manager sees vindication beginning but acknowledges long road ahead as rate normalization pressures alternatives and HALO trade gains momentum against previously favored asset-light strategies.

Aikya's emerging markets fund fell 8.7% in March but outperformed the benchmark's 13.1% decline through quality positioning. Semiconductor correction led by TSMC, Samsung, and SK Hynix drove weakness amid tempered AI enthusiasm. Brazil and China provided protection with Natura and Foshan Haitian performing well, while Unilever and HDFC Bank weighed on returns.

Harvest Lane's Absolute Return Fund posted -1.11% in Q1 2026 but maintains strong long-term performance with 9.04% annualized returns since 2013. The fund employs selective merger arbitrage and corporate events strategies, targeting absolute returns with capital preservation focus and low correlation to traditional markets.

International value strategy underperformed in Q1 2026 despite strong semiconductor and mining contributions. Manager actively repositioned portfolio with six new initiations, focusing on companies trading at significant discounts to intrinsic value. Believes current market volatility and short-term noise create opportunities for disciplined investors emphasizing long-term business fundamentals over headlines.

Jennison used Q1 2026's -11.7% drawdown to rotate from software into AI infrastructure, semiconductors, and power demand themes. The fund now focuses on areas with physical capacity constraints rather than end-market uncertainty, adding ASML, Broadcom, Palantir, and industrial names like Siemens Energy. Management sees compelling valuations after the rotation away from growth.

Aegis Value Fund delivered 16.31% Q1 returns, continuing 27-year outperformance through concentrated small-cap value investing. Fund targets lowest price-to-book quintile securities during market stress, leveraging small-cap inefficiencies and emotional overreactions. Strong employee co-investment and differentiated positioning in underserved deep-value segment drives superior long-term results.

International small cap fund declined 8.12% in Q1 2026 but managers remain disciplined on undervalued opportunities. Jenoptik led gains on semiconductor recovery while new positions DTS and Minor International capitalize on Japan digitization and hospitality deleveraging themes. Portfolio emphasizes long-term fundamentals over short-term market noise with meaningful discounts to intrinsic value.

Market narratives are forming faster and broader since COVID, creating opportunities when prices diverge from fundamentals. AI fears are painting entire sectors with broad strokes, missing distinctions between companies with strong switching costs versus those truly at risk. Similar dynamics in commercial insurance, hyperscalers, and private credit create entry points for patient fundamental investors.

Heartland Value Plus matched its benchmark in Q1 as small-caps outperformed amid broadening market conditions, though geopolitical risks from Iran war cloud the outlook. The fund emphasizes companies with strong capital allocation through buybacks and dividend increases, with 90% of holdings repurchasing shares. Management remains focused on value principles to navigate uncertainty.

Q1 2026 was dominated by the U.S.-Iran war that shut the Strait of Hormuz, spiking oil over 50% and shifting Fed expectations from cuts to potential hikes. Credit stress emerged with distressed loans hitting 7.23% while commercial real estate delinquencies rose. Energy outperformed dramatically while broader markets declined on geopolitical uncertainty and inflation fears.

Growth equity strategy down 9.4% in volatile Q1 marked by AI fears and Iran war. Manager trimmed semiconductor winners, added beaten-down software quality at attractive valuations. Maintains conviction that enterprise software with deep IT integration benefits from AI rather than faces disruption. Focus on quality growth companies positioned for long-term AI adoption cycle.

Q1 2026 markets were upended by Iran conflict escalation in March, disrupting global energy supplies and sparking stagflation fears. The S&P 500 fell 4.3% as geopolitical risks dominated, reversing earlier optimism. Energy prices surged while defensive sectors outperformed. With policy tools constrained and risks elevated since the pandemic, prudent positioning is essential.