Osterweis Capital Management’s Osterweis Opportunity Fund returned 35.34% in the second quarter, beating the Russell 2000 Growth Index’s 25.71% gain. The fund cited security selection in Technology, Industrials, Health Care, and Consumer Discretionary as the main driver of its outperformance. Its top holdings include SiTime Corporation (SITM), which delivered a 114% quarterly return.
The Fund’s Quarter
The rally was driven by several forces working together: strong corporate profits, heavy investment in artificial intelligence, easing worries over oil prices, a robust labor market, and sustained consumer spending. Smaller sectors such as Consumer Staples, Financials, and Real Estate lagged behind, though their underperformance had little effect on the broader market. The fund’s letter also pointed to a possible consolidation phase for AI-related stocks ahead.
SiTime’s Q2 Performance
The company SiTime Corporation focuses on creating solutions for silicon timing systems. The closing price per share on September 22, 2026, was $633.72. Within the last month, the stock gained 0.72%, while its value has increased 104.73% over the past year. Its market capitalization stands at $19.06 billion, and its trading range over the past 52 weeks has been from $243.68 to $901.81.
What Osterweis Said
Osterweis Opportunity Fund described SiTime Corporation as its best performer within Information Technology. The fund’s letter states: “Our best performer within IT was SiTime Corporation (NASDAQ:SITM), which returned 114% in the quarter. The company is the leading pure-play precision timing semiconductor company, with increasing adoption in AI data centers and other applications like Apple’s iPhone.”
The letter went on to say: “The company reported 88% growth in its most recent quarter, reflecting broad-based acceleration in its Communications, Enterprise, and Data Center division. SiTime also acquired Renesas’s timing business, furthering its target of 25-30% annual growth and 30%+ operating margins. We believe precision timing is an underappreciated part of AI infrastructure, and SiTime is the market leader.”
The Hedge Fund Picture
The source’s records show that 76 hedge fund portfolios owned shares of SiTime Corporation at the close of the second quarter, up from 54 the quarter before.
Our View on the Stock
We do not include SiTime Corporation among the 40 Most Popular Stocks Among Hedge Funds. The company has clear investment merit, yet we think some AI stocks deliver stronger upside potential with lower exposure to loss.
A Look at the Numbers
| Metric | Value |
|---|---|
| Q2 Return | 35.34% |
| Russell 2000 Growth Index Gain | 25.71% |
| SiTime Q2 Return | 114% |
| Recent Quarter Growth | 88% |
| Market Cap | $19.06 billion |
| 52-week Range | $243.68 to $901.81 |
The Bottom Line
The company behind the deal is SiTime Corporation, which calls itself the leading pure-play precision timing semiconductor firm. The purchase of Renesas’s timing business supports its target of 25-30% annual growth and 30%+ operating margins. The stock’s 114% has produced a strong quarterly result, even though the stock remains below its 52-week peak.
Several sectors contributed to the fund’s outperformance through security selection, with SiTime Corporation serving as the centerpiece of its Technology exposure.
Source material: “SiTime Corporation (SITM) Positioned at the Heart of AI Hardware Expansion,” Yahoo Finance.
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