Bloom Energy Corp. (BE) Short Position Weighs on Performance Amid Small-Cap AI Rally

Bloom Energy Corp. (BE) Short Position Weighs on Performance Amid Small-Cap AI Rally

Wed, September 16, 2026 at 4:05 PM GMT+3 3 min read

• BE +3.87%

Wasatch Global Investors, an asset management company, released its "Long/Short Alpha Fund" Q2 2026 investor letter. The letter can be downloaded here. Small- and mid-cap growth stocks posted significant gains in Q2, led primarily by AI-related companies. The Russell 2500 Index rose 20.26%, while the Wasatch Long/Short Alpha Fund—Investor Class increased by 8.29%. However, the fund faced challenges due to the outperformance of lower-quality companies, which negatively impacted its long positions. Despite trailing the benchmark and some losses in short positions, the fund remains confident in its long portfolio's fundamentals, which have not deteriorated. Additionally, reviewing the Fund's top five holdings could help identify its best picks for 2026.

In its second-quarter 2026 investor letter, Wasatch Long/Short Alpha Fund highlighted Bloom Energy Corporation (NYSE:BE). Bloom Energy Corporation (NYSE:BE), designs and manufactures solid-oxide fuel cell systems for clean, reliable, on-site power generation. On September 15, 2026, Bloom Energy Corporation closed at $259.35 per share. Over the past month, Bloom Energy Corporation returned 25.51%, and its shares are up 225.53% over the past year. Bloom Energy Corporation has a market capitalization of $76.39 billion, and its stock has traded within a 52-week range of $61.37 to $351.28.

Wasatch Long/Short Alpha Fund stated the following regarding Bloom Energy Corporation (NYSE:BE) in its Q2 2026 investor letter:

"Turning to short positions, detractors from Fund performance were those stocks that rose in price. One of the largest detractors was Bloom Energy Corporation (NYSE:BE). Bloom Energy sells natural, gas-powered fuel cells that help data centers generate power on-site before the centers can connect to the electrical grid. Bloom's stock price has increased significantly in recent months, and we believe it is representative of some of the AI-related exuberance in the small cap market."

Bloom Energy Corporation (NYSE:BE) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 116 hedge fund portfolios held Bloom Energy Corporation (NYSE:BE) at the end of the second quarter, up from 91 in the previous quarter. While we acknowledge the potential of Bloom Energy Corporation (NYSE:BE) 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 discussed Bloom Energy Corporation (NYSE:BE) and highlighted American Century Investments Focused Dynamic Growth Fund's views on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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This article is originally published at Insider Monkey.