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 Synchronoss Technologies, Inc. (NASDAQ:SNCR), in the second quarter 2024 investor letter. Synchronoss Technologies, Inc. (NASDAQ:SNCR) offers cloud, messaging, digital, and network management solutions. The one-month return of Synchronoss Technologies, Inc. (NASDAQ:SNCR) was 22.35%, and its shares gained 54.79% of their value over the last 52 weeks. On September 5, 2024, Synchronoss Technologies, Inc. (NASDAQ:SNCR) stock closed at $14.07 per share with a market capitalization of $152.212 million.
180 Degree Capital Corp stated the following regarding Synchronoss Technologies, Inc. (NASDAQ:SNCR) in its Q2 2024 investor letter:
“In 2021, we helped Synchronoss Technologies, Inc. (NASDAQ:SNCR), retire a toxic preferred stock instrument held by Siris Capital that enabled the company to sell off non-core assets and focus on its high-value cloud business. More recently, SNCR was presented with an opportunity to retire its high-interest preferred stock as well as some of its senior notes, both at a discount to face value. The size of this opportunity was larger than we could take on ourselves, so we worked with SNCR to run a competitive process to identify sources of capital to complete this opportunistic deleveraging and of-capital reducing transaction. We believe it was a significant milestone for SNCR and were pleased to be of assistance in completing the transaction. We are now focused on a number of additional value-creating catalysts that we believe could occur in the near future including receipt of a $28 million tax refund that will enable the company to further deleverage its balance sheet and continued performance of its cloud business that we currently expect to drive meaningful free cash flow generation in 2024 and beyond.”
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Synchronoss Technologies, Inc. (NASDAQ:SNCR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 4 hedge fund portfolios held Synchronoss Technologies, Inc. (NASDAQ:SNCR) at the end of the second quarter which was 3 in the previous quarter. Synchronoss Technologies, Inc.’s (NASDAQ:SNCR) revenue increased by 5.9% year-over-year in the second quarter to $43.5 million, primarily due to a 6.1% growth in cloud subscribers. While we acknowledge the potential of Synchronoss Technologies, Inc. (NASDAQ:SNCR) 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 Synchronoss Technologies, Inc. (NASDAQ:SNCR) and shared 180 Degree Capital Corp’s views on the company in the previous quarter. 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.
