The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.

Riverwater Partners, an investment management company, released its “Sustainable Value Strategy” Q1 2026 investor letter. A copy of the letter can be downloaded here. In Q1 2026, the Riverwater Sustainable Value Strategy underperformed the Russell 2500 Value Index. The underperformance was driven entirely by stock selection, while sector allocation contributed positively. The quarter demonstrated a strong small-cap market with an 11.1% return until February, but later the strategy lagged by over 5%, following geopolitical events. Despite this, relative performance improved, indicating strong downside protection. Looking ahead, the firm anticipates a shift back to fundamentals expected to favor high-quality small-cap stocks over lower-quality peers and large-cap equities. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.

In its first-quarter 2026 investor letter, Riverwater Sustainable Value Strategy highlighted stocks like Haemonetics Corporation (NYSE:HAE). Haemonetics Corporation (NYSE:HAE) is an innovative medical technology company that provides solutions for improving patient care. On April 20, 2026, Haemonetics Corporation (NYSE:HAE) closed at $61.17 per share. One-month return of Haemonetics Corporation (NYSE:HAE) was 7.96%, and its shares gained 3.42% over the past 52 weeks. Haemonetics Corporation (NYSE:HAE) has a market capitalization of $2.86 billion.

Riverwater Sustainable Value Strategy stated the following regarding Haemonetics Corporation (NYSE:HAE) in its Q1 2026 investor letter:

"Haemonetics Corporation (NYSE:HAE) was the top detractor in the first quarter (after being the top contributor in the fourth quarter of 2025). It was also the worst performer during the third quarter of 2025. HAE has two main businesses: selling equipment and disposables into plasma collection centers; and selling devices into the vascular surgical market. While it has required patience, something investors are short on, HAE’s position in the plasma market is seeing strength, with growing collection volumes, share gains, and favorable pricing, returning this business to growth for the first time in two years. The interventional cardiology business has been challenged by increased competition. HAE has invested in its commercial team and has begun to see share gains again. We feel confident that HAE will compete well fundamentally, and hopeful that the market will give them credit for it."

 

Haemonetics Corporation (NYSE:HAE) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 33 hedge fund portfolios held Haemonetics Corporation (NYSE:HAE) at the end of the fourth quarter, compared to 36 in the previous quarter. Haemonetics Corporation (NYSE:HAE) reported revenue of $339 million in the third quarter of 2026, bringing year-to-date revenue to $988 million. While we acknowledge the potential of Haemonetics Corporation (NYSE:HAE) 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.

In another article, we covered Haemonetics Corporation (NYSE:HAE) and shared the list of best healthcare stocks to buy and hold for 3 years. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. This article is originally published at Insider Monkey.