180 Degree Capital Corp., an investment management firm, recently released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter letter, the firm focused on how it employs constructive activism to drive value creation in what the firm holds and the investing universe. The identification of catalysts that the firm believes can lead to a material increase in value is a prerequisite for all constructive activism efforts. For more information on the fund’s top picks in 2024, please check its top five holdings.
180 Degree Capital Corp highlighted stocks like Lantronix, Inc. (NASDAQ:LTRX), in the second quarter 2024 investor letter. Lantronix, Inc. (NASDAQ:LTRX) is a company that offers solutions for video surveillance, infotainment systems, and intelligent substations infrastructure. The one-month return of Lantronix, Inc. (NASDAQ:LTRX) was -8.52%, and its shares lost 35.09% of their value over the last 52 weeks. On September 5, 2024, Lantronix, Inc. (NASDAQ:LTRX) stock closed at $3.33 per share with a market capitalization of $125.142 million.
180 Degree Capital Corp stated the following regarding Lantronix, Inc. (NASDAQ:LTRX) in its Q2 2024 investor letter:
“More recently, we have been working behind the scenes with the management and board of Lantronix, Inc. (NASDAQ:LTRX) on ways to solidify the strong foundation of the company and set it up for success and significant value creation for stockholders in the future. We believe LTRX’s new CEO, Saleel Awsare brings an interesting and successful background to LTRX. What we believe he needed to be in the best position for success were board members who have experience navigating the challenges unique to microcapitalization companies. Following multiple discussions, we introduced Saleel and his board to Narbeh Derhacobian, the former Chief Executive Officer and founder of our former portfolio company, Adesto Technologies, Inc., and one of Adesto’s board members, Kevin Palatnik, who has significant experience as a CFO at multiple related businesses. We were pleased to see that LTRX’s board saw the same value that we do in these individuals, in terms of helping Saleel and his team to have the best opportunities to achieve multiple catalysts that could lead to material increases in value for LTRX and its stockholders.”
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Lantronix, Inc. (NASDAQ:LTRX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Lantronix, Inc. (NASDAQ:LTRX) at the end of the second quarter which was 17 in the previous quarter. While we acknowledge the potential of Lantronix, Inc. (NASDAQ:LTRX) 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 Lantronix, Inc. (NASDAQ:LTRX) and shared the list of best artificial intelligence stocks under $50 according to hedge funds. As noted in 180 Degree Capital Corp.’s Q1 2024 letter, Lantronix, Inc. (NASDAQ:LTRX) experienced a downturn in the quarter because of reduced guidance. In addition, please check out our hedge fund investor letters Q2 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.
