Wasatch Global Investors, an asset management company, released its “Wasatch Micro-Cap Value Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. On Wednesday, September 18, the Federal Reserve reduced its key interest rate by half a percentage point, marking its first cut since 2020. Following this announcement, stocks reached all-time highs as the Fed indicated there would be more cuts planned for this year and the next. The strategy posted gains, outperforming the benchmark Russell Microcap® Index, which increased 8.29% during the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Wasatch Micro-Cap Value Strategy highlighted stocks like Bowman Consulting Group Ltd. (NASDAQ:BWMN), in the third quarter 2024 investor letter. Bowman Consulting Group Ltd. (NASDAQ:BWMN) offers real estate, energy, infrastructure, and environmental management solutions. The one-month return of Bowman Consulting Group Ltd. (NASDAQ:BWMN) was -7.70%, and its shares lost 22.24% of their value over the last 52 weeks. On January 3, 2025, Bowman Consulting Group Ltd. (NASDAQ:BWMN) stock closed at $25.66 per share with a market capitalization of $449.815 million.
Wasatch Micro-Cap Value Strategy stated the following regarding Bowman Consulting Group Ltd. (NASDAQ:BWMN) in its Q3 2024 investor letter:
“Another detractor from strategy performance was Bowman Consulting Group Ltd. (NASDAQ:BWMN). The engineering consultancy designs infrastructure projects for a variety of clients. Delays in multifamily projects and build-to-rent permitting work weighed on the stock. While these conditions are near-term headwinds, we still like the company’s long-term growth potential. Currently, there’s a large market for engineering design, which provides enormous opportunity for a smaller company like Bowman to ramp up its projects.”
An aerial view of a residential neighborhood with green trees and a park in the foreground.
Bowman Consulting Group Ltd. (NASDAQ:BWMN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held Bowman Consulting Group Ltd. (NASDAQ:BWMN) at the end of the third quarter which was 12 in the previous quarter. Bowman Consulting Group Ltd.’s (NASDAQ:BWMN) gross revenue in the third quarter was up 21% year-over-year at $113.9 million with net revenue up 23% to $101 million. While we acknowledge the potential of Bowman Consulting Group Ltd. (NASDAQ:BWMN) 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 Bowman Consulting Group Ltd. (NASDAQ:BWMN) and shared Conestoga Capital Advisors’ 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.
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.