Michigan-based investment advisor Cedar Grove Capital Management recently released its first quarter 2026 investor letter. A copy of the letter can be downloaded here. Cedar Grove Capital Management’s Multi-Strategy Composite posted a -23.0% net return since inception, compared to -5.6% for the Russell 2000, -5.9% for the Russell Microcap, and -5.5% for the S&P 500. Timing is key for early fund success, yet predicting external shocks during volatile macroeconomic periods is impossible. Rather than speculate on macro risks, it’s advisable to invest in strong companies at reasonable prices with good growth prospects. The recent downturn, called a “SaaS apocalypse,” was an opportunity to buy quality stocks that were undervalued despite better fundamentals and potential AI-driven gains. In February and early March, nearly all portfolio holdings reported strong earnings. However, the outbreak of war in Iran quickly overshadowed these gains, causing a rapid market selloff. While macro factors hurt performance in Q1, the firm is confident that its companies will do well in Q2 and beyond. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Cedar Grove Capital Management highlighted SANUWAVE Health, Inc. (NASDAQ:SNWV). SANUWAVE Health, Inc. (NASDAQ:SNWV) is a medical device company focuses on noninvasive ultrasound or shockwaves technologies. On April 17, 2026, SANUWAVE Health, Inc. (NASDAQ:SNWV) closed at $20.61 per share. One-month return of SANUWAVE Health, Inc. (NASDAQ:SNWV) was 0.59%, and its shares lost 26.39% over the past 52 weeks. SANUWAVE Health, Inc. (NASDAQ:SNWV) has a market capitalization of $177.13 million.
Cedar Grove Capital Management stated the following regarding SANUWAVE Health, Inc. (NASDAQ:SNWV) in its Q1 2026 investor letter:
“SANUWAVE Health, Inc. (NASDAQ:SNWV) is a medical device company in the wound care space. They help patients who have open wounds — such as ulcers — to speed up the process by using a non-contact ultrasound device called ‘UltraMist.’ The procedure is largely covered by insurance but has historically operated in an industry where plenty of Medicare fraud occurs (skin grafts). In Q3’25, CMS dropped the hammer on the skin graft fraud by limiting how much could be covered under the old way of doing things. This put pressure on the stock, given the uncertainty on reimbursement rates or changes to CPT coverage codes could affect the business. SNWV got the clarity needed and is now able to take advantage of the changing landscape in its favor going forward. This is on the heels of a highly successful debt refinancing in September of last year, along with a better-than-feared Q4’25, in which other competitors saw deteriorating results. SNWV is small, but has a proven product, a long runway in the wound care space now that CMS guidance has been officially updated, and the CEO looks open to potentially a buyer coming in at some point as an additional call option.”
