Next Century Growth Investors, LLC, an investment Management Company, released its “Micro-Cap Strategy” fourth-quarter investor letter. A copy of the letter can be downloaded here. The recent surge in the stock market highlights the significance of current macroeconomic indicators and the Fed’s outlook on future interest rates. The strategy returned 9.54% (net of fees) compared to 15.63% for the Russell Microcap Growth Index. Over the trailing year, the strategy returned 10.15% compared to 9.10% for the index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
NCG Micro-Cap Strategy featured stocks like PDF Solutions, Inc. (NASDAQ:PDFS) in the Q4 2023 investor letter. Headquartered in Santa Clara, California, PDF Solutions, Inc. (NASDAQ:PDFS) offers proprietary software and physical intellectual property products for integrated circuit designs, electrical measurement hardware tools, proven methodologies, and professional services. On April 1, 2024, PDF Solutions, Inc. (NASDAQ:PDFS) stock closed at $33.40 per share. One-month return of PDF Solutions, Inc. (NASDAQ:PDFS) was -0.21%, and its shares lost 22.63% of their value over the last 52 weeks. PDF Solutions, Inc. (NASDAQ:PDFS) has a market capitalization of $1.266 billion.
NCG Micro-Cap Strategy stated the following regarding PDF Solutions, Inc. (NASDAQ:PDFS) in its fourth quarter 2023 investor letter:
“PDF Solutions, Inc. (NASDAQ:PDFS) provides a market-leading advanced analytics solution for the semiconductor supply chain, helping improve process efficiency and product reliability for customers. The company’s solution becomes more valuable and in-demand as complexity of semiconductors increases, which is a trend expected to continue. While the company has a strong competitive position and is exposed to favorable trends in the semiconductor industry, a key value-enhancing decision has been to transition their business model in recent years towards a recurring revenue model, which has generated strong and consistent revenue growth and a healthy margin and cash flow profile. In addition to continued growth in its core market, PDFS has a pipeline of new solutions that could be additive to the growth opportunity over time.”
A close-up of a digital cloud, signifying the expansive reach of the software-as-a-service solution.
PDF Solutions, Inc. (NASDAQ:PDFS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, PDF Solutions, Inc. (NASDAQ:PDFS) was held by 22 hedge fund portfolios, compared to 17 in the previous quarter, according to our database.
We discussed PDF Solutions, Inc. (NASDAQ:PDFS) in another article and shared the list of high-growth semiconductor stocks that are profitable. In addition, please check out our hedge fund investor letters Q4 2023 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.
