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Crossroads Capital LLC, an investment management firm, published its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. The Fund increased by 11.5% net of fees and expenses during the quarter. Since its founding, the fund has compounded at a net rate of 17.9%.  By the end of June 2026, the fund's overall non-delta-adjusted gross and net exposures were 115.0% and 86.9%, respectively. In Q2, the S&P 500 rebounded 14.9%, its best since 2020, as market uncertainty eased. The oil market showed a transition, with Brent crude prices fluctuating. AI and semiconductors thrived, with 25% earnings growth. The quarter underscored a key principle: risk is priced continuously but resolved discontinuously. Small-cap benchmarks hit new highs, though the Magnificent 7 saw modest gains. In Q2, market activity focused on adjustments rather than facts, capitalizing on high option premiums.  In addition, please check the Fund's top five holdings to know its best picks in 2026.

In its Q2 2026 investor letter, Crossroads Capital highlighted AST SpaceMobile, Inc. (NASDAQ:ASTS). AST SpaceMobile, Inc. (NASDAQ:ASTS) is a US-based satellite communication company developing a space-based cellular broadband network designed to connect directly to smartphones through its BlueBird satellites. On August 19, 2026, AST SpaceMobile, Inc. (NASDAQ:ASTS) closed at $66.43 per share, reflecting a market capitalization of $25.85 billion. AST SpaceMobile, Inc. (NASDAQ:ASTS) posted a one‑month return of 12.25%, while its shares gained 47.69% over the past 52 weeks.

Crossroads Capital stated the following regarding AST SpaceMobile, Inc. (NASDAQ:ASTS) in its Q2 2026 investor letter:

"AST SpaceMobile, Inc. (NASDAQ:ASTS): Q2 picked up exactly where Q1 left off. As we've stated before, the transition we laid out last quarter—from R&D stage startup to operational scaleup—went from "underway" to "unmistakable" over the last three months. It charged us a toll along the way, however: The BB7 satellite launched on April 19 but was then lost when Blue Origin's New Glenn rocket failed during deployment. The failure was cleanly attributable to Blue Origin, not to AST; it amounted to a ~$125 million write-off (partially covered by launch insurance, and claims have been filed). AST's response on the May call was the right one, citing its 33 satellites (now 42, as of this writing) in advanced stages of production. So, yes, BB7 was a loss, but it's moving on to the next launch.

First-quarter results in May landed with modest revenue from gateways and government milestones, guidance reaffirmed, and. roughly $3.5B of cash. More important, the FCC granted commercial authorization for SpaceMobile service in the United States, covering a network of up to 248 satellites. So the regulatory question for the home market is now answered. Block 1 satellites also set a 98.9 Mbps peak-speed record to unmodified smartphones, with Block 2 expected to nearly double it..." (Click here to read the full text)

AST SpaceMobile, Inc. (NASDAQ:ASTS) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held AST SpaceMobile, Inc. (NASDAQ:ASTS) at the end of the first quarter, which was 33 in the previous quarter. While we acknowledge the potential of AST SpaceMobile, Inc. (NASDAQ:ASTS) 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 AST SpaceMobile, Inc. (NASDAQ:ASTS) and highlighted whether it can manage its $1.3 billion backlog effectively. In its Q1 2026 investor letter, Crossroads Capital discussed AST SpaceMobile, Inc. (NASDAQ:ASTS) and emphasized risks and opportunities tied to its roll out and monetization plans.  In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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