Prosper Stars & Stripes, a long/short equity fund, recently released its first-quarter 2026 investor letter. A copy of the letter is available to download here. In Q1 2026, the portfolio underperformed with a net return of (-5.6%) compared to the Russell 2000 Index’s +0.9% return and the HFRX Equity Hedge Index’s -1.5% return. Long book performance was negative, while the short book contributed positively. Geopolitics significantly influenced the first quarter, contributing to increased inflation pressures and elevated energy prices. Additionally, you can review the Portfolio’s top 5 holdings to see its best picks for 2026.
In its first-quarter 2026 investor letter, Prosper Stars & Stripes highlighted Via Transportation, Inc. (NYSE:VIA). Via Transportation, Inc. (NYSE:VIA) is a US-based technology company that offers a digital public transportation platform that helps to address workflows for the end-to-end management of transit networks. On June 17, 2026, Via Transportation, Inc. (NYSE:VIA) stock closed at $14.82 per share. One-month return of Via Transportation, Inc. (NYSE:VIA) was 2.21%, and YTD its shares are down 48.91%. Via Transportation, Inc. (NYSE:VIA) has a market capitalization of $1.26 billion.
Prosper Stars & Stripes stated the following regarding Via Transportation, Inc. (NYSE:VIA) in its Q1 2026 investor letter:
“Via Transportation, Inc. (NYSE:VIA) was the largest contributor in our short book in the first quarter. The company went public in September 2025, positioning itself as the operating system for public transit, offering routing algorithms, scheduling tools, fleet management software, and a passenger-facing application. We initiated our short position shortly after its IPO based on the view that the market was mischaracterizing a labor-intensive transit contractor as a high-margin software company. In FY2025, Via reported gross margins of 40%, well below the 70%+ typical of pure-play software companies. Importantly, the company’s growth remains tied to driver hours and vehicle utilization, rather than scalable, low-marginal-cost software deployment. We also believe there are potential structural risks in the business model. Approximately 90% of revenue is derived from government clients, exposing Via to contracting cycles, budget constraints, and political dynamics. Our due diligence further indicated limited pricing power, highlighted by a recent contract renegotiation with LA Metro. We continue to maintain a short position in Via.”
Via Transportation, Inc. (NYSE:VIA) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 22 hedge fund portfolios held Via Transportation, Inc. (NYSE:VIA) at the end of the first quarter, up from 17 in the previous quarter. While we acknowledge the potential of Via Transportation, Inc. (NYSE:VIA) 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.
