Wasatch Global Investors, an asset management company, released its “Wasatch Micro-Cap Value Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. On Wednesday, September 18, the Federal Reserve reduced its key interest rate by half a percentage point, marking its first cut since 2020. Following this announcement, stocks reached all-time highs as the Fed indicated there would be more cuts planned for this year and the next. The strategy posted gains, outperforming the benchmark Russell Microcap® Index, which increased 8.29% during the quarter. 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 Climb Global Solutions, Inc. (NASDAQ:CLMB) in the third quarter 2024 investor letter. Headquartered in Eatontown, New Jersey, Climb Global Solutions, Inc. (NASDAQ:CLMB) is a value-added information technology distribution and solutions company. The one-month return of Climb Global Solutions, Inc. (NASDAQ:CLMB) was -1.68%, and its shares gained 145.01% of their value over the last 52 weeks. On January 3, 2025, Climb Global Solutions, Inc. (NASDAQ:CLMB) stock closed at $127.48 per share with a market capitalization of $587.274 million.
Wasatch Micro-Cap Value Strategy stated the following regarding Climb Global Solutions, Inc. (NASDAQ:CLMB) in its Q3 2024 investor letter:
“Climb Global Solutions, Inc. (CLMB) also contributed to performance. The company is a specialty information-technology distributor that connects small- and medium-size enterprises with technologies from upstart, often venture-capital-backed technology companies. The stock was up substantially after management shared quarterly operating results that were strong on many fronts. We continue to like Climb and appreciate its niche place in the market. It caters to smaller companies often underserved by technology distributors.”
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Climb Global Solutions, Inc. (NASDAQ:CLMB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held Climb Global Solutions, Inc. (NASDAQ:CLMB) at the end of the third quarter which was 6 in the previous quarter. Climb Global Solutions, Inc.’s (NASDAQ:CLMB) net sales in the third quarter of 2024 increased 52% to $119.3 million compared to $78.5 million in Q3 2023. While we acknowledge the potential of Climb Global Solutions, Inc. (NASDAQ:CLMB) 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 Climb Global Solutions, Inc. (NASDAQ:CLMB) and shared Headwaters Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.