Brown Capital Management, an investment management company, released its “The Brown Capital Management Small Company Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The Small Company Fund returned -6.57%, underperforming the Russell 2000 Growth index’s 2.92% decline. Fundamental and macroeconomic factors drove the underperformance of the fund in the quarter. The fund aims to identify and invest in Exceptional Growth Companies (EGCs) that focus on products and services their customers cannot live without. In addition, check the fund’s top five holdings to know its best picks in 2024.
Brown Capital Management Small Company Fund highlighted stocks like Bio-Techne Corporation (NASDAQ:TECH), in the second quarter 2024 investor letter. Bio-Techne Corporation (NASDAQ:TECH), with a market capitalization of $11.338 billion, develops, manufactures, and sells life science reagents, instruments, and services for the research and clinical diagnostic markets. One-month return of Bio-Techne Corporation (NASDAQ:TECH) was -0.40%, and its shares lost 0.20% of their value over the last 52 weeks. On September 6, 2024, Bio-Techne Corporation (NASDAQ:TECH) stock closed at $71.49 per share.
Brown Capital Management Small Company Fund stated the following regarding Bio-Techne Corporation (NASDAQ:TECH) in its Q2 2024 investor letter:
“Periods of underperformance like we are experiencing now are never smooth sailing, but we are encouraged by the signs that our headwinds may be abating. First, health care spending is flashing signs of bottoming. This quarter, Bio-Techne Corporation (NASDAQ:TECH) reported a turn in the soft biotech funding environment, as well as macroeconomic challenges in China. In fact, Bio-Techne reported that biopharma revenues were up low single digits in the first quarter of 2024 due to improved biotech funding. Bio-Techne also reported that revenue from China declined mid-single digits year over year and remained almost flat as compared to the previous quarter. While these are early data points, they provide reasons for optimism for improvements in the health care spending environment.”
A biopharmaceutical facility with technicians working on a manufacturing line of treatments and preventions.
Bio-Techne Corporation (NASDAQ:TECH) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Bio-Techne Corporation (NASDAQ:TECH) at the end of the second quarter which was 28 in the previous quarter. In the fourth fiscal quarter of 2024, the company generated $306.1 million in revenues, up 2% year-over-year on a reported basis, a 1% on an organic basis. While we acknowledge the potential of Bio-Techne Corporation (NASDAQ:TECH) 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 Bio-Techne Corporation (NASDAQ:TECH) and shared Conestoga Capital Advisors’ 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.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
