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 Lantronix, Inc. (NASDAQ:LTRX), in the first quarter 2024 investor letter. Lantronix, Inc. (NASDAQ:LTRX) offers solutions for video surveillance, infotainment systems, and intelligent substations infrastructure. The one-month return of Lantronix, Inc. (NASDAQ:LTRX) was 1.63%, and its shares lost 15.35% of their value over the last 52 weeks. On May 28, 2024, Lantronix, Inc. (NASDAQ:LTRX) stock closed at $3.7400 per share with a market capitalization of $140.899 million.
180 Degree Capital Corp. stated the following regarding Lantronix, Inc. (NASDAQ:LTRX) in its first quarter 2024 investor letter:
“Lantronix, Inc. (NASDAQ:LTRX): LTRX reported results for its fiscal Q2 2024 (ended December 31, 2023), that met expectations, however delays in one of its compute programs coupled with weakness in its distribution sales channels led to lowering of full-year guidance. While this reduction was expected to lead to weakness in the stock, LTRX’s new CEO indicated his need to review every aspect of the company and would not back the opportunity funnel communicated on calls prior to his tenure. His tone and word selection made LTRX appear as a turnaround rather than a strong business, and this approach placed extreme pressure on the stock that continued through the remainder of the quarter.
Subsequent to the disaster that was the fiscal Q2 2024 conf call, we have spent considerable time with the management team and Board attempting to provide advice on what we believed LTRX’s management needed to do on its next earnings call. Some of these suggestions were incorporated into LTRX’s recent fiscal Q3 2024 conference call, but additional steps are required to regain the confidence of investors. LTRX is another portfolio company where we may ramp up our constructive activism to drive change and value creation for shareholders.
For the quarter, LTRX decreased NAV by $0.13/share, or $1.3million.”
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Lantronix, Inc. (NASDAQ:LTRX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Lantronix, Inc. (NASDAQ:LTRX) at the end of the first quarter which was 15 in the previous quarter.
In another article, we discussed Lantronix, Inc. (NASDAQ:LTRX) and shared the list of best artificial intelligence stocks under $20. 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.
