Overview
- Grow Funds published an investor letter in mid‑June reporting the GROW Small Cap Equity Long/Short Fund returned 4.18% in Q1 and beat the Russell 2000 Growth Index and several hedge‑fund benchmarks.
- The firm attributes the outperformance to a combination of concentrated long positions, hedges and targeted short positions that limited losses when energy and market volatility rose during the Iran War.
- At the company level Grow highlighted Duos Technologies for a transformation into modular edge data centers and 363% year‑over‑year revenue growth in Q1 that it says underpins recurring rental revenue from deployments.
- Grow flagged Paysign for beating Q4 2025 estimates, raising 2026 guidance, and reporting roughly 50.8% revenue growth to $28 million in Q1, while noting Profound Medical has 78 TULSA‑PRO systems installed and a 110+ system pipeline with favorable trial results.
- The letter warned that some AI infrastructure winners carry stretched prices, citing Astera’s slowing growth and a P/E above 57x on 2026 earnings, and it said Tigo Energy stands to gain from higher energy prices after reporting 33.7% revenue growth in Q1.