Deep Sail Capital Partners, an investment management company, released its first-quarter 2026 investor letter. A copy of the letter is available to download here. Deep Sail Capital Partners returned -17.8% net of fees in Q1 2026, with an average long exposure of 84%. Since the end of the first quarter, the Fund has returned 20.4%, net of fees. The Fund underperformed both of its benchmarks, the Russell 2000 Mid Cap Growth Index and the Russell 2000 Index, in the quarter. The market volatility due to the Iran war negatively impacted the long portfolio, affecting quarterly performance, while the short portfolio generated positive returns. The letter also discussed AI as the most significant factor influencing market fluctuations….