Next Century Growth Investors, LLC, an investment Management Company, released its “Micro-Cap Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter of 2024, the market continued 2023 momentum. The strategy returned 6.75% (net of fees) compared to a 6.60% return for the Russell Microcap Growth Index. The strategy outperformed across most sectors but underperformed in health care. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Next Century Growth Investors Micro-Cap Strategy highlighted stocks like QuinStreet, Inc. (NASDAQ:QNST) in the first quarter 2024 investor letter. QuinStreet, Inc. (NASDAQ:QNST) is an online performance marketing company. The one-month return of QuinStreet, Inc. (NASDAQ:QNST) was -11.37%, and its shares gained 92.83% of their value over the last 52 weeks. On June 13, 2024, QuinStreet, Inc. (NASDAQ:QNST) stock closed at $16.14 per share with a market capitalization of $892.167 million.
Next Century Growth Investors Micro-Cap Strategy stated the following regarding QuinStreet, Inc. (NASDAQ:QNST) in its first quarter 2024 investor letter:
“QuinStreet, Inc. (NASDAQ:QNST) is an advertising technology company that powers online marketplaces to match searching consumers with brands in large end markets such as insurance, home services, credit cards, personal loans, and banking. With one of the largest media networks, QNST allows consumers to find brands faster, while giving the brands measurability of digital media spend. We have owned QNST in the past. Since then, they have streamlined the business by eliminating a few problematic end markets, and their largest vertical, insurance, appears to be back in growth mode. We believe QNST’s revenue growth can accelerate from current levels, which should also drive solid operating margin expansion and earnings growth.”
A customer service representative attending to a customer enquiry from a home services area.
QuinStreet, Inc. (NASDAQ:QNST) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held QuinStreet, Inc. (NASDAQ:QNST) at the end of the first quarter which was 15 in the previous quarter. QuinStreet, Inc. (NASDAQ:QNST) delivered a solid quarter with a total revenue of $168.6 million grew about 40% sequentially. While we acknowledge the potential of QuinStreet, Inc. (NASDAQ:QNST) 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 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.
