Lumentum Holdings (LITE) Upswing Dampens Wasatch Long/Short Alpha Fund’s Performance

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Soumya Eswaran

Wed, June 3, 2026 astatine 9:25 AM CDT 3 min read

The Wasatch Long/Short Alpha Fund, managed by Wasatch Global Advisors, has precocious published its Q1 2026 capitalist letter, which is disposable to download here. A displacement successful capitalist sentiment led to a marketplace correction and accrued volatility successful U.S. small- and mid-cap stocks during the archetypal quarter. Despite this, enthusiasm for AI continued to enactment companies progressive successful infrastructure development. The concern intensified successful the 4th owed to the struggle successful Iran, causing investors to see the imaginable for rising lipid prices and their wider implications connected the planetary economy. In this context, the Russell 2500 Index returned 2.04% successful the quarter, portion the Wasatch Long/Short Alpha Fund—Investor Class surpassed this show with a emergence of 4.16%, supported by the outperformance of its abbreviated positions. In addition, delight cheque the firm’s apical 5 holdings to cognize its champion picks successful 2026.

In its first-quarter 2026 capitalist letter, Wasatch Long/Short Alpha Fund highlighted Lumentum Holdings Inc. (NASDAQ:LITE). Lumentum Holdings Inc. (NASDAQ:LITE) is simply a starring exertion institution that manufactures and sells optical and photonic products. On June 2, 2026, Lumentum Holdings Inc. (NASDAQ:LITE) closed astatine $1,029.15 per share. One-month instrumentality of Lumentum Holdings Inc. (NASDAQ:LITE) was 3.70%, and its shares gained 1,119.72% implicit the past 52 weeks. Lumentum Holdings Inc. (NASDAQ:LITE) has a marketplace capitalization of $76.15 billion.

Wasatch Long/Short Alpha Fund stated the pursuing regarding Lumentum Holdings Inc. (NASDAQ:LITE) successful its Q1 2026 capitalist letter:

"Turning to abbreviated positions, detractors from Fund show were those stocks that roseate successful price. One of the largest detractors among our shorts was Lumentum Holdings Inc. (NASDAQ:LITE). We clasp the abbreviated presumption to offset the hazard of immoderate of our agelong holdings tied to the AI buildout. We judge the abbreviated presumption successful Lumentum volition assistance to mitigate the downside should the stocks of companies tied to AI infrastructure merchantability disconnected broadly. But connected a cardinal basis, we don’t deliberation Lumentum has arsenic almighty an economical motor arsenic immoderate of our agelong holdings tied to the AI buildout, nor bash we deliberation Lumentum volition beryllium arsenic profitable."

Is Lightwave Logic Inc. (LWLG) the Best Nanotech Penny Stock to Invest In?

Lumentum Holdings Inc. (NASDAQ:LITE) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 123 hedge money portfolios held Lumentum Holdings Inc. (NASDAQ:LITE) astatine the extremity of the archetypal quarter, up from 97 successful the erstwhile quarter. While we admit the imaginable of Lumentum Holdings Inc. (NASDAQ:LITE) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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