180 Degree Capital Corp., an investment management firm, recently released its first quarter 2024 investor letter. A copy of the letter can be downloaded here. In March, despite the market sell-off, the fund achieved a +4.7% gross total return from its cash and public-related securities, leading to a 2.8% gain in the NAV to $5.16. The firm believes that the economy will continue to show resilience, and its portfolio companies do not require lower rates to create value for shareholders. They benefit from positive economic trends and activism across many holdings. For more information on the fund’s top picks in 2024, please check its top five holdings.
180 Degree Capital Corp. highlighted stocks like Quantum Corporation (NASDAQ:QMCO), in the first quarter 2024 investor letter. Quantum Corporation (NASDAQ:QMCO) offers products for storing and managing digital video and unstructured data. The one-month return of Quantum Corporation (NASDAQ:QMCO) was -10.52%, and its shares lost 60.55% of their value over the last 52 weeks. On May 28, 2024, Quantum Corporation (NASDAQ:QMCO) stock closed at $0.4270 per share with a market capitalization of $41.248 million.
180 Degree Capital Corp. stated the following regarding Quantum Corporation (NASDAQ:QMCO) in its first quarter 2024 investor letter:
“Quantum Corporation (NASDAQ:QMCO): Even though QMCO remained delayed in filing its financial statements due to the ongoing review of revenue recognition as raised by its new auditor, Grant Thornton, the company was able to provide updates on its balance sheet and noted that it was taking steps to optimize its working capital and reduce debt. QMCO also announced several new products with artificial intelligence-related features.
I have not truly had a good word to say about this company in a very long time. It is the one name we own where we have gotten it very wrong from a fundamental thesis perspective, and without question, this position has turned into our worst idea since 180 started. QMCO has an uncanny ability to snatch defeat out of the jaws of victory and the management team, unfortunately, has been long on excuses since the early days when we had a very high regard for the team. That said, based on recent filings and public communications, we do believe QMCO is at the end of this latest drama with its new auditors. We don’t believe the issue is significant, and we do believe the stock is going to go materially higher when it is resolved, hopefully, by the end of Q2 2024. It is our view that once this accounting matter is resolved, QMCO should sell themselves, and we will advocate for that likely through some form of activism.
For the quarter, QMCO increased NAV by $0.08/share, or $0.8 million.”
A businesswoman using a digital device to monitor a workflow orchestration process, illustrating the company’s versatility in critical operations.
Quantum Corporation (NASDAQ:QMCO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 3 hedge fund portfolios held Quantum Corporation (NASDAQ:QMCO) at the end of the first quarter which was 4 in the previous quarter.
In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
