Wasatch Global Investors, an asset management company, released its “Wasatch Micro Cap Value Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. During the first quarter, the strategy outperformed the benchmark Russell Microcap Index which rose 4.68%. Most of the portfolio holdings of the strategy met or exceeded earnings and revenue expectations in the quarter. Investor sentiments gradually improved as the quarter went on. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Wasatch Micro Cap Value Strategy highlighted stocks like BigCommerce Holdings, Inc. (NASDAQ:BIGC), in the first quarter 2024 investor letter. BigCommerce Holdings, Inc. (NASDAQ:BIGC) develops software-as-a-service (SaaS) technology solutions. The one-month return of BigCommerce Holdings, Inc. (NASDAQ:BIGC) was 4.81%, and its shares lost 14.96% of their value over the last 52 weeks. On June 7, 2024, BigCommerce Holdings, Inc. (NASDAQ:BIGC) stock closed at $8.00 per share with a market capitalization of $628.628 million.
Wasatch Micro Cap Value Strategy stated the following regarding BigCommerce Holdings, Inc. (NASDAQ:BIGC) in its first quarter 2024 investor letter:
“BigCommerce Holdings, Inc. (NASDAQ:BIGC) was also a detractor. The company provides software that powers online retail sites. BigCommerce has shifted its focus to large enterprise accounts because management believes these accounts offer the greatest opportunity for long-term growth. We like this shift and think the associated workforce reductions will allow the company to achieve profitability more quickly. Additionally, we believe BigCommerce’s best-of-breed solution for enterprise-scale e-commerce places the company in a strong competitive position, especially as online retailers broaden their reach. During the first quarter, however, the stock was down because BigCommerce forecasted 2024 revenue growth that fell short of expectations. We think the company was too conservative in its revenue guidance as it attempted to underpromise with the goal of eventually overdelivering.”
Highlighting the company’s sector and industry, a technician working on a complex SaaS in a technology lab.
BigCommerce Holdings, Inc. (NASDAQ:BIGC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held BigCommerce Holdings, Inc. (NASDAQ:BIGC) at the end of the first quarter which was 10 in the previous quarter. BigCommerce Holdings, Inc. (NASDAQ:BIGC) reported first-quarter revenue of nearly $80 million, up 12% year-over-year. While we acknowledge the potential of BigCommerce Holdings, Inc. (NASDAQ:BIGC) 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.
In another article, we discussed BigCommerce Holdings, Inc. (NASDAQ:BIGC) and shared the list of best all time low stocks to invest in. In addition, please check out our hedge fund investor letters Q1 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.
