ewsba.se
Bristlemoon Capital, a global equities firm, released its “Bristlemoon Global Fund” first-quarter 2026 investor letter. The Bristlemoon Global Fund returned -25.5 percent in the March 2026 quarter, with a -3.4 percent return for March 2026, net of fees. A copy of the letter is available to download here. This was the Fund's most severe drawdown since inception, caused not by declining earnings, but by sharp and rapid repricing by investors. The letter outlined the weak performance, how the firm addressed it with a compounding/conviction position sizing framework, and adjustments following the Iran War developments. The first quarter of 2026 saw a sharp sell-off in software companies, mostly due to fears that AI would impact SaaS companies. During this dislocation, the firm increased its holdings of high-quality assets at lower prices. Long-term earnings growth remains key, and the firm believes its positions are well-placed to compound earnings attractively over time. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Bristlemoon Global Fund highlighted PAR Technology Corporation (NYSE:PAR). PAR Technology Corporation (NYSE:PAR) is a leading technology company that offers cloud-based hardware and software solutions to the restaurant and retail industries. On May 05, 2026, PAR Technology Corporation (NYSE:PAR) closed at $13.71 per share. One-month return of PAR Technology Corporation (NYSE:PAR) was 6.86%, and its shares lost 76.95% over the past 52 weeks. PAR Technology Corporation (NYSE:PAR) has a market capitalization of $565.49 million.
Bristlemoon Global Fund stated the following regarding PAR Technology Corporation (NYSE:PAR) in its Q1 2026 investor letter:
"PAR Technology Corporation (NYSE:PAR) is another holding in the Fund that has experienced a severe drawdown, despite healthy underlying business performance. The difficulty with PAR is that the business is only in the early stages of ramping up its earnings profile. The corollary of this is that with minimal near-term earnings support, and in a market that has been particularly unforgiving towards software businesses, PAR’s stock has struggled to find a floor.
To highlight how savage the selloff has been for PAR, the stock fell from around $70 per share in mid 2025 to around $13 per share today, a more than -80% decline. On FY27 consensus adjusted EBITDA estimates of $66 million, the stock trades at a 13x multiple, and this is despite a long runway to continue winning new logos, with PAR in discussions with multiple mega tier 1 restaurant chains for deals that would provide strong visibility over robust annual recurring revenue (ARR) growth for years to come. Our thesis of PAR becoming the operating system for enterprise restaurants continues to play out, with PAR continuing to sign deals with new restaurants, and an increasing number of these deals starting off as multi-product deals. PAR charges just 15-20 basis points of a restaurant’s sales for a mission-critical product that restaurants cannot function without.…” (Click here to read the full text)
PAR Technology Corporation (NYSE:PAR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 27 hedge fund portfolios held PAR Technology Corporation (NYSE:PAR) at the end of the fourth quarter, up from 24 in the previous quarter. PAR Technology Corporation’s (NYSE:PAR) fourth quarter revenue increased nearly 14% year-over-year to $120.1 million. While we acknowledge the potential of PAR Technology Corporation (NYSE:PAR) 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 PAR Technology Corporation (NYSE:PAR) and shared Laughing Water Capital's views on the company. 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.