US-based investment company, McIntyre Partnerships, returned -19% gross and -20% net in the first quarter of 2026 compared to the Russell 2000 Value Index’s 5% return. A copy of the letter can be downloaded here. Since inception, the fund has returned ~14% gross and ~10% net per annum, surpassing the benchmark’s return of ~7% per annum. The Q1 results were disappointing for the fund, primarily due to a significant decline in the shares of life science tools and medical device stocks, in which the fund has substantial investments, as well as specific issues related to QDEL, a company in the life science tools sector. By the end of the month, the fund’s exposure was recorded at 123% long, 27% short, and 97% net. In addition, you can check the Strategy’s top 5 holdings to determine its best picks for 2026.
In its first-quarter 2026 investor letter, McIntyre Partnerships highlighted Star Holdings (NASDAQ:STHO). Star Holdings (NASDAQ:STHO) is a real estate company that engages in non-ground lease-related businesses. On June 1, 2026, Star Holdings (NASDAQ:STHO) closed at $8.88 per share. One-month return of Star Holdings (NASDAQ:STHO) was 3.62%, and its shares gained 22.48% over the past 52 weeks. Star Holdings (NASDAQ:STHO) has a market capitalization of $107.35 million.
McIntyre Partnerships stated the following regarding Star Holdings (NASDAQ:STHO) in its Q1 2026 investor letter:
“In the losers column, FTRE, SHC, SWIM, and Star Holdings (NASDAQ:STHO) lost 100-500bps, and QDEL lost over 500bps. STHO fell modestly during the quarter for no particular reason. STHO is the second largest position in the fund. They recently received full repayment from a seller-financed JV and are now in a net cash position. STHO has now repurchased ~10% of the shares outstanding over the last 12 months, and I anticipate capital returns will accelerate now that the JV has been exited.”
Star Holdings (NASDAQ:STHO) 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 Star Holdings (NASDAQ:STHO) at the end of the first quarter, compared to 15 in the previous quarter. While we acknowledge the potential of Star Holdings (NASDAQ:STHO) 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.