Wasatch Global Investors, an asset management company, released its “Wasatch Small Cap Growth Strategy” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. US small-caps experienced modest gains in Q4, driven by presidential election and anticipated economic growth and less regulation. However, markets fell in December due to higher interest rates. Against this backdrop the strategy gained and outperformed the benchmark Russell 2000® Growth Index, which was up 1.70%. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Wasatch Small Cap Growth Strategy emphasized stocks such as Construction Partners, Inc. (NASDAQ:ROAD). Construction Partners, Inc. (NASDAQ:ROAD) is a civil infrastructure company that constructs and maintains roadways. The one-month return Construction Partners, Inc. (NASDAQ:ROAD) was -7.73%, and its shares gained 39.78% of their value over the last 52 weeks. On March 14, 2025, Construction Partners, Inc. (NASDAQ:ROAD) stock closed at $71.58 per share with a market capitalization of $4 billion.
Wasatch Small Cap Growth Strategy stated the following regarding Construction Partners, Inc. (NASDAQ:ROAD) in its Q4 2024 investor letter:
“Construction Partners, Inc. (NASDAQ:ROAD) was an additional contributor. Construction Partners is a civil infrastructure company specializing in public and private infrastructure projects such as highways, roads, bridges, airports, and commercial and residential sites. During the quarter, the company announced strong fiscal year 2024 results, including 17% revenue growth and a 40% increase in net income. Management also announced a deal to purchase Lone Star Paving, an asphalt production and paving firm. We believe the acquisition will be quite accretive for the company. Looking forward, we like Construction Partners’ growth potential and geographic footprint. Construction Partners has a large presence in Southern states, where population growth is high and states need to expand and improve infrastructure.”
An aerial view of a bridge under construction with workers continuing their work despite the early morning light.
Construction Partners, Inc. (NASDAQ:ROAD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Construction Partners, Inc. (NASDAQ:ROAD) at the end of the fourth quarter compared to 16 in the third quarter. Construction Partners, Inc.’s (NASDAQ:ROAD) revenue was $561.6 million in the fiscal first quarter of 2025, an increase of 41.6% compared to the same quarter a year ago. While we acknowledge the potential of Construction Partners, Inc. (NASDAQ:ROAD) 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 Construction Partners, Inc. (NASDAQ:ROAD) and shared Conestoga Capital Advisors’ views on the company. 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.