Alluvial Capital Management, an investment advisory firm, released its first-quarter 2026 investor letter. A copy of the letter is available to download here. The Fund delivered 3.0% in the first quarter of 2026, marking a solid start against flattish benchmarks. The outbreak of the war impacted the returns in the quarter. The portfolio prefers stable businesses with predictable cash flows, like staple foods, cleaning products, and communications, which offer protection when the economy weakens. Markets have rebounded since the end of the quarter, de-escalation and increased hopes for peace and normalizing energy flows, resulting in the small-cap Russell 2000 Index being up 11% so far in April. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, Alluvial Capital Management highlighted stocks like FitLife Brands, Inc. (NASDAQ:FTLF). FitLife Brands, Inc. (NASDAQ:FTLF) is a nutritional supplements provider. On June 2, 2026, FitLife Brands, Inc. (NASDAQ:FTLF) closed at $9.72 per share. One-month return of FitLife Brands, Inc. (NASDAQ:FTLF) was 4.40%, and its shares lost 32.78% over the past 52 weeks. FitLife Brands, Inc. (NASDAQ:FTLF) has a market capitalization of $91.28 million.
Alluvial Capital Management stated the following regarding FitLife Brands, Inc. (NASDAQ:FTLF) in its Q1 2026 investor letter:
“Fourth quarter 2025 earnings reports from our portfolio holdings were very solid, with one notable exception. FitLife Brands, Inc. (NASDAQ:FTLF) reported disappointing figures, indicating challenges with legacy brands online sales had continued from the third quarter into the fourth. Essentially, changes to the Amazon product search algorithm directed fewer potential buyers to FitLife’s legacy products. Also, sales and margins for the company’s MusclePharm products were negatively affected by high whey protein prices. It all added up to a rough quarter, with cash contribution (gross profit less advertising expenses) from legacy products down 18% year-over-year. The company is working diligently to address the problem, adjusting its marketing approach and introducing new products for in-store placement, but has not yet succeeded in reversing the decline.
There is a bright spot. The company’s August 2025 acquisition of Irwin Naturals is performing quite well, showing growth and generating cash well in excess of acquisition-related debt service costs. Irwin Naturals is having success in building an online sales channel from a zero base. The pace of monthly online sales reached $500,000 in December and $800,000 by the end of March…” (Click here to read the full text)
