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 Cantaloupe, Inc. (NASDAQ:CTLP), in the fourth quarter 2024 investor letter. Cantaloupe, Inc. (NASDAQ:CTLP) is a digital payments and software services company. One-month return of Cantaloupe, Inc. (NASDAQ:CTLP) was -11.34%, and its shares gained 22.27% of their value over the last 52 weeks. On January 21, 2025, Cantaloupe, Inc. (NASDAQ:CTLP) stock closed at $8.29 per share with a market capitalization of $605.06 million.
Laughing Water Capital stated the following regarding Cantaloupe, Inc. (NASDAQ:CTLP) in its Q4 2024 investor letter:
“Cantaloupe, Inc. (NASDAQ:CTLP) – Cantaloupe can most simply be thought of as our vending machine software and payments company, although the industry is evolving to more fully encompass “unattended retail,” including micro markets and smart stores. After many disappointing years, under new leadership the Company has reached an inflection point and is growing at a high teens level into a cash machine focused on stable end markets, while also growing internationally and into adjacent markets. With time I expect the market will appreciate that cash flow generated from software and payments with very little churn is valuable, and re-rate shares higher. It should be noted that while CTLP is in our top 5, it is a medium sized position.”
A woman at a self-service kiosk using a software service to manage logistics.
Cantaloupe, Inc. (NASDAQ:CTLP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Cantaloupe, Inc. (NASDAQ:CTLP) at the end of the third quarter which was 17 in the previous quarter. In the fiscal first quarter of 2025, Cantaloupe, Inc.’s (NASDAQ:CTLP) revenue increased 13% year-over-year to $70.8 million driven by transaction and subscription revenue growth. While we acknowledge the potential of Cantaloupe, Inc. (NASDAQ:CTLP) 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 Cantaloupe, Inc. (NASDAQ:CTLP) in another article, where we shared Laughing Water Capital’s views on the company in the previous quarter. 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.