Schafer Cullen Capital Management, Inc., an independent investment advisor, released its Q1 2026 investor letter for the “Small Cap Value Equity Strategy.” You can download a copy of the letter here. U.S. equity markets started 2026 with notable volatility due to geopolitical events and shifting macro conditions. The Russell 2000 rose 0.9% for the quarter, with small-cap value outperforming growth. Concerns over AI and its impact on software companies heightened among investors. The Small Cap Value Equity strategy composite returned -1.8% (gross) and -2.0% (net) in the quarter, while the Russell 2000 Value returned 5.0% for the quarter, and the broader Russell 2000 Index gained 0.9%, reflecting strength in small caps. The performance in the quarter was shaped by rising interest rates, widening credit spreads, and geopolitical tensions. Overall, the quarter challenged quality-oriented strategies, yet the firm remains committed to investing in companies with strong balance sheets and sustainable earnings, believing this focus will benefit as market conditions improve. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Schafer Cullen Capital Small Cap Value Equity Strategy highlighted stocks like Crocs, Inc. (NASDAQ:CROX). Crocs, Inc. (NASDAQ:CROX) is a leading casual lifestyle footwear and accessories company best known for its iconic clogs. On June 1, 2026, Crocs, Inc. (NASDAQ:CROX) closed at $119.28 per share. One-month return of Crocs, Inc. (NASDAQ:CROX) was 15.87%, and its shares gained 16.75% over the past 52 weeks. Crocs, Inc. (NASDAQ:CROX) has a market capitalization of $5.93 billion.
Schafer Cullen Capital Small Cap Value Equity Strategy stated the following regarding Crocs, Inc. (NASDAQ:CROX) in its Q1 2026 investor letter:
"Performance was driven by Under Armour (45.2%), Marriott Vacations (14.2%), and Crocs, Inc. (NASDAQ:CROX) (13.3%), reflecting strength in branded apparel and leisure demand. Sales: Crocs Inc. (CROX): While the company continues to execute well operationally, the valuation became less compelling relative to other opportunities within the portfolio and its HeyDude brand continues to experience growth issues."
Crocs, Inc. (NASDAQ:CROX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 44 hedge fund portfolios held Crocs, Inc. (NASDAQ:CROX) at the end of the first quarter, compared to 40 in the previous quarter. in Q1 2026, Crocs, Inc. (NASDAQ:CROX) generated enterprise revenue of $921 million, down 2% to prior year on a reported basis. While we acknowledge the potential of Crocs, Inc. (NASDAQ:CROX) 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