Brown Capital Management, an investment management company, released its “The Brown Capital Management Small Company Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The Small Company Fund returned 8.48% in the quarter, roughly in line with the Russell 2000 Growth index’s 8.41% return. The Fund has only gained 1.80% year to date, far behind the benchmark’s return of 13.22%, despite this quarter representing a minor move toward a fundamentally driven market. In addition, check the fund’s top five holdings to know its best picks in 2024.
The Brown Capital Management Small Company Fund highlighted stocks like Smartsheet Inc. (NYSE:SMAR) in the third quarter 2024 investor letter. Smartsheet Inc. (NYSE:SMAR) offers an enterprise platform to plan, capture, manage, automate, and report on work for teams and organizations. The one-month return of Smartsheet Inc. (NYSE:SMAR) was -0.27%, and its shares gained 17.50% of their value over the last 52 weeks. On December 19, 2024, Smartsheet Inc. (NYSE:SMAR) stock closed at $56.00 per share with a market capitalization of $7.84 billion.
The Brown Capital Management Small Company Fund stated the following regarding Smartsheet Inc. (NYSE:SMAR) in its Q3 2024 investor letter:
“Smartsheet Inc. (NYSE:SMAR) is the leading cloud-based work-management and collaboration software. Smartsheet enables cross-functional teams to quickly plan, manage, analyze and report on their work, provides visibility and collaboration across teams, and drives significant efficiency gains, accountability and engagement. It is more efficient than manual processes like phone calls, in-person meetings and lightweight tools like email and spreadsheets but is easier to use than custom-built project-management software like Jira and ServiceNow, which require IT and development support to adapt to individual use cases. Regular business users of Smartsheet capture data using an intuitive Web-based spreadsheet interface and configure the software to their workflows without coding. Reporting and automation capabilities drive efficiency and eliminate administrative and repetitive work. Smartsheet has broad integrations with other vendors including Google, Microsoft, Box, Salesforce, Tableau and Slack. We believe Smartsheet saves time, money and headaches. Due to the breadth of its use cases, we see a large $17-billion greenfield market opportunity for Smartsheet.”
An executive in suit presenting a large touch screen of the company’s cloud-based enterprise platform.
Smartsheet Inc. (NYSE:SMAR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held Smartsheet Inc. (NYSE:SMAR) at the end of the third quarter which was 57 in the previous quarter. While we acknowledge the potential of Smartsheet Inc. (NYSE:SMAR) 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 Smartsheet Inc. (NYSE:SMAR) and shared Optimist Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.
