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 Mama’s Creations, Inc. (NASDAQ:MAMA), in the second quarter 2024 investor letter. Mama’s Creations, Inc. (NASDAQ:MAMA) manufactures and markets fresh deli-prepared foods. The one-month return of Mama’s Creations, Inc. (NASDAQ:MAMA) was 3.87%, and its shares gained 90.69% of their value over the last 52 weeks. On September 5, 2024, Mama’s Creations, Inc. (NASDAQ:MAMA) stock closed at $7.78 per share with a market capitalization of $289.907 million.
180 Degree Capital Corp stated the following regarding Mama’s Creations, Inc. (NASDAQ:MAMA) in its Q2 2024 investor letter:
“In 2023, we were introduced to Mama’s Creations, Inc. (NASDAQ:MAMA), by our friends Mark Argento and Ryan Meyers at Lake Street Capital Markets. MAMA was generally off the radar of most investors given it had a market capitalization of less than $75 million, but it had just hired Adam Michaels as its new Chief Executive Officer. Adam came from a successful career at Mondelez and brought a new level of rigor and determination to MAMA that had not existed before. While we really liked the company and what Adam was doing to turn it around, a substantial portion of the ownership was held by its founder and former Chief Executive Officer who was no longer with the company. This concentrated ownership made MAMA uninvestable for us and likely a number of other investors. We encouraged MAMA and Lake Street to find a solution to this issue and offered to meaningfully participate in such a solution. The former CEO agreed to sell his stock and this deal pulled together by Lake Street closed on June 2023, we meaningfully increased our ownership , and, as we believed would be the case, when coupled with the business performance under Adam’s management, MAMA’s stock price has tripled off the price the stock traded at on that deal.”
Mama’s Creations, Inc. (NASDAQ:MAMA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held Mama’s Creations, Inc. (NASDAQ:MAMA) at the end of the second quarter which was 15 in the previous quarter. Mama’s Creations, Inc. (NASDAQ:MAMA) reported $29.8 million in revenues in the first quarter of fiscal 2025 increased 29% from $23.1 million in the same year-ago quarter. While we acknowledge the potential of Mama’s Creations, Inc. (NASDAQ:MAMA) 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 Mama’s Creations, Inc. (NASDAQ:MAMA) and shared Diamond Hill Small Cap Fund’s views on the company. 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.