Headwaters Capital Management, an investment management company, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned -6.6% (gross) and -6.8% (net) in the fourth quarter compared to a 0.6% return for the Russell Mid Cap Index. For the full year the portfolio returned +14.0% (+13.1% net) compared to a +15.3% return for the index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Headwaters Capital Management highlighted stocks like Climb Global Solutions, Inc. (NASDAQ:CLMB) in the fourth 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 4.20%, and its shares gained 153.08% of their value over the last 52 weeks. On January 15, 2025, Climb Global Solutions, Inc. (NASDAQ:CLMB) stock closed at $129.70 per share with a market capitalization of $597.501 million.
Headwaters Capital Management stated the following regarding Climb Global Solutions, Inc. (NASDAQ:CLMB) in its Q4 2024 investor letter:
“Top Contributors: Climb Global Solutions, Inc. (NASDAQ:CLMB) +23%: For the second quarter in a row, CLMB was the strategy’s top contributor. Organic growth for this specialty IT distributor continues to exceed expectations given the company’s cybersecurity and data center focus, two areas of IT spending that remain healthy.”
A technician in a server room of a corporate office surrounded by servers and networking equipment.
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 Wasatch Micro-Cap Value Strategy’s views on the company in the previous quarter. Climb Global Solutions, Inc. (NASDAQ:CLMB) contributed to the performance of Headwaters Capital Management in the previous quarter after reporting strong results. 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.