Grow Funds, an investment Advisor, released its Q1 2026 investor letter for “GROW Small Cap Equity Long/Short Fund”. A copy of the letter can be downloaded here. In Q1 2026, GROW Small Cap Equity Long/Short L.P (Fund) returned 4.18%, outperforming the Russell 2000 Growth Index’s –2.80%, HFRI Equity Hedge Index’s -0.24%, and the HFRI Fundamental Growth Index’s 0.47% returns. Long positions and hedges, and short positions, safeguarded the portfolio amid the volatility driven by the Iran War. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Grow Funds highlighted Paysign, Inc. (NASDAQ:PAYS). Paysign, Inc. (NASDAQ:PAYS) is a financial technology company specializes in prepaid card programs, patient affordability offerings, digital banking, life science software technology solutions, and integrated payment processing services. On June 18, 2026, Paysign, Inc. (NASDAQ:PAYS) closed at $7.40 per share. One-month return of Paysign, Inc. (NASDAQ:PAYS) was 10.12%, and its shares gained 35.78% over the past 52 weeks. Paysign, Inc. (NASDAQ:PAYS) has a market capitalization of $413.70 million.
Grow Funds stated the following regarding Paysign, Inc. (NASDAQ:PAYS) in its Q1 2026 investor letter:
“Paysign, Inc. (NASDAQ: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.”
Paysign, Inc. (NASDAQ:PAYS) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 14 hedge fund portfolios held Paysign, Inc. (NASDAQ:PAYS) at the end of the first quarter, compared to 18 in the previous quarter. In Q1 2026, Paysign, Inc.’s (NASDAQ:PAYS) revenue grew 50.8% to $28 million. While we acknowledge the potential of Paysign, Inc. (NASDAQ:PAYS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.