TMR Investments, an investment management company, released its fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The firm concentrates on SMID cap value-oriented special situations and technology investments. The firm anticipates further dispersion in the tech industry, particularly as the AI cycle develops. Its long/short strategy and capacity to capitalize on disruptions are best suited to the current market conditions. TMR’s Long Short Opportunities, LP, returned 15.7% (net) in 2024 compared to 11.7% for the Russell 2000 Index and 9.1% for the Eureka Long Short HF Index. TMR’s Partners Long Only, LP, returned 25.3% (net) compared to 11.7% and 9.1% for Indexes. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, TMR Investments emphasized stocks such as WM Technology, Inc. (NASDAQ:MAPS). WM Technology, Inc. (NASDAQ:MAPS) is an online cannabis marketplace that offers ecommerce and compliance software solutions. The one-month return WM Technology, Inc. (NASDAQ:MAPS) was 2.29%, and its shares gained 17.54% of their value over the last 52 weeks. On March 24, 2025, WM Technology, Inc. (NASDAQ:MAPS) stock closed at $1.34 per share with a market capitalization of $233.196 million.
TMR Investments stated the following regarding WM Technology, Inc. (NASDAQ:MAPS) in its Q4 2024 investor letter:
“WM Technology (MAPS): The company is an online marketplace/classifieds business for cannabis – it’s a picks & shovel play. $180M revenue, 95% gross margins, 17% EBITDA margins, FCF generative. $45M cash, no debt but they do have operating leases. They have become the dominant platform in the industry. Given the company’s lead in traffic, active users, and retailers/brands on the platform, WM Technology benefits from strong network effects. Dispensaries have to be on the platform if they want to drive sales. They trade at 1x revenue and 6x EBITDA. They had no sell side analysts or investors on their latest earnings call.
The co-founders are trying to acquire the company at 1.7, effectively stealing the company from shareholders. The stock currently trades at 1.3 per share. We sent a letter to the Board urging them to reject the low ball acquisition and instead pursue a novel capital allocation approach that can improve their balance sheet and instantly get them attention from the capital markets.”
A wide angle shot of a software software engineer working at a computer.
WM Technology, Inc. (NASDAQ:MAPS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held WM Technology, Inc. (NASDAQ:MAPS) at the end of the fourth quarter which was 13 in the previous quarter. WM Technology, Inc.’s (NASDAQ:MAPS) fourth quarter revenues increased sequentially to $47.7 million, exceeding the guidance. While we acknowledge the potential of WM Technology, Inc. (NASDAQ:MAPS) 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 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.