Laughing Water Capital, an investment management company, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, Class A interests in Laughing Water Capital returned about 18.6% bringing year-to-date returns to approximately 39.5%. The SP500TR and R2000 returned 2.4% and 0.3% in the quarter and 25% and 11.5% year-to-date, respectively. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Laughing Water Capital highlighted stocks like Avid Bioservices, Inc. (NASDAQ:CDMO), in the fourth quarter 2024 investor letter. Avid Bioservices, Inc. (NASDAQ:CDMO) is a contract development and manufacturing organization. The one-month return of Avid Bioservices, Inc. (NASDAQ:CDMO) was 1.63%, and its shares gained 88.79% of their value over the last 52 weeks. On January 21, 2025, Avid Bioservices, Inc. (NASDAQ:CDMO) stock closed at $12.46 per share with a market capitalization of $796.983 million.
Laughing Water Capital stated the following regarding Avid Bioservices, Inc. (NASDAQ:CDMO) in its Q4 2024 investor letter:
“Avid Bioservices, Inc. (NASDAQ:CDMO) – Our long standing on-again off-again investment in Avid looks to be coming to a close, as the Company recently announced they would be selling themselves to a pair of private equity firms at a disappointing price. In brief, for years we have been patiently waiting for revenue to inflect as the Company expanded its footprint. The new facilities are now operational, and rather than allowing the public shareholders to enjoy the fruits of their patience, management and the board are selling the company at a price that in my view gives no credit for these new facilities. The private equity buyers will thus enjoy the fruits of our patience. This outcome would boggle the mind, if not for management’s incompetence around a convertible debt exchange earlier this year which I detailed in our Q1’24 letter. This blunder destroyed significant value, and ordinarily this level of incompetence would be career-ending. However, one way to avoid this fate is to quickly accept a low-ball bid for the company, so one can continue to work away from the public eye.”
A chemist looking through a microscope in a research and development facility as they synthesize recombinant proteins.
Avid Bioservices, Inc. (NASDAQ:CDMO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Avid Bioservices, Inc. (NASDAQ:CDMO) at the end of the third quarter which was 26 in the previous quarter. While we acknowledge the potential of Avid Bioservices, Inc. (NASDAQ:CDMO) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
We previously discussed Avid Bioservices, Inc. (NASDAQ:CDMO) in another article, where we shared the list of best small-cap healthcare stocks to buy. Laughing Water Capital shared its confidence in the growth potential of Avid Bioservices, Inc. (NASDAQ:CDMO) in its Q2 2024 investor letter. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.