Renaissance Investment Management, an investment management company, released its Q4 2024 “Small Cap Growth Strategy” investor letter. A copy of the letter can be downloaded here. The Russell 2000 Growth Index generated a return of 1.7% in the fourth quarter, bringing the yearly returns to 15.2%. The portfolio generated positive returns in the fourth quarter and outperformed the Index. The outperformance was driven by stock selection in Information Technology and underweight position and stock selection in Health Care, while stock selection in Communication Services and Consumer Discretionary detracted. For more information on the fund’s best picks in 2024, please check its top five holdings.
In its fourth quarter 2024 investor letter, Renaissance Investment Management Small Cap Growth Strategy emphasized stocks such as Credo Technology Group Holding Ltd (NASDAQ:CRDO). Credo Technology Group Holding Ltd (NASDAQ:CRDO) offers a wide range of various high-speed connectivity solutions for optical and electrical Ethernet applications. The one-month return Credo Technology Group Holding Ltd (NASDAQ:CRDO) was -10.72%, and its shares gained 85.92% of their value over the last 52 weeks. On April 1, 2025, Credo Technology Group Holding Ltd (NASDAQ:CRDO) stock closed at $41.72 per share with a market capitalization of $7.084 billion.
Renaissance Investment Management Small Cap Growth Strategy stated the following regarding Credo Technology Group Holding Ltd (NASDAQ:CRDO) in its Q4 2024 investor letter:
“Credo Technology Group Holding Ltd (NASDAQ:CRDO), a provider of connectivity solutions for data centers, was our best performing stock in the fourth quarter. The company’s products target the AI-server market with very high bandwidth connectivity rates and low-power solutions. In the most recently reported quarter, the company saw increased demand from current customers along with the ramping of a new customer that drove revenue guidance significantly above expectations. Moreover, the company expects revenues for the next fiscal year to grow by at least 50%. We believe the market share opportunities for Credo are still in the early stages, as the company continues to engage with large hyperscalers and the demand for AI servers and infrastructure remains robust.”
An engineer in a cleanroom testing and tweaking an integrated circuit.
Credo Technology Group Holding Ltd (NASDAQ:CRDO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Credo Technology Group Holding Ltd (NASDAQ:CRDO) at the end of the fourth quarter compared to 30 in the third quarter. In the fiscal third quarter of 2025, Credo Technology Group Holding Ltd (NASDAQ:CRDO) generated $135 million in revenues, up 87% sequentially and up 154% year-over-year. While we acknowledge the potential of Credo Technology Group Holding Ltd (NASDAQ:CRDO) 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 covered Credo Technology Group Holding Ltd (NASDAQ:CRDO) in another article, where we shared the list of best mid cap AI stocks to buy. 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.