Michigan-based investment advisor Cedar Grove Capital Management recently released its first quarter 2026 investor letter. A copy of the letter can be downloaded here. Cedar Grove Capital Management's Multi-Strategy Composite posted a -23.0% net return since inception, compared to -5.6% for the Russell 2000, -5.9% for the Russell Microcap, and -5.5% for the S&P 500.
Timing is key for early fund success, yet predicting external shocks during volatile macroeconomic periods is impossible. Rather than speculate on macro risks, it's advisable to invest in strong companies at reasonable prices with good growth prospects. The recent downturn, called a "SaaS apocalypse," was an opportunity to buy quality stocks that were undervalued despite better fundamentals and potential AI-driven gains.
In February and early March, nearly all portfolio holdings reported strong earnings. However, the outbreak of war in Iran quickly overshadowed these gains, causing a rapid market selloff. While macro factors hurt performance in Q1, the firm is confident that its companies will do well in Q2 and beyond.
In addition, please check the Strategy's top five holdings to know its best picks in 2026. In its first-quarter 2026 investor letter, Cedar Grove Capital Management highlighted stocks like Hims & Hers Health, Inc. (NYSE:HIMS). Hims & Hers Health, Inc. (NYSE:HIMS) is a leading telehealth platform that offers a range of curated prescription and non-prescription health and wellness products and services.
On April 16, 2026, Hims & Hers Health, Inc. (NYSE:HIMS) closed at $26.99 per share. One-month return of Hims & Hers Health, Inc. (NYSE:HIMS) was 33.24%, and its shares gained 7.75% over the past 52 weeks. Hims & Hers Health, Inc. (NYSE:HIMS) has a market capitalization of $6.15 billion.
Cedar Grove Capital Management stated the following regarding Hims & Hers Health, Inc. (NYSE:HIMS) in its Q1 2026 investor letter: "Hims & Hers Health, Inc. (NYSE:HIMS): If you've known us for even a little bit, you've most likely known our coverage of this name from a bearish point of view since January 2025. Our continued notes on the name last year, on the company relying heavily on their compounded GLP-1 offering to offset a decelerating core business, allowed for multiple opportunities to realize gains on the short side. Needless to say, Andrew (CEO) eventually did fly too close to the sun and was inevitably sued for IP infringement by Novo Nordisk (NVO) in February of this year.
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