The London Company, an investment management company, released “The London Company Small Cap Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund fell 5.8% (5.9%, net) compared to a 3.3% decrease in the Russell 2000 Index. The positive impact of sector allocation was mitigated by stock selection in the second quarter. For more information on the fund’s top picks in 2024, please check its top five holdings.
The London Company Small Cap Strategy highlighted stocks like Certara, Inc. (NASDAQ:CERT), in the second quarter 2024 investor letter. Certara, Inc. (NASDAQ:CERT) offers software products and technology-enabled services to customers for bio-simulation in drug discovery, preclinical and clinical research, regulatory submissions, and market access. The one-month return of Certara, Inc. (NASDAQ:CERT) was -20.06%, and its shares lost 27.23% of their value over the last 52 weeks. On August 9, 2024, Certara, Inc. (NASDAQ:CERT) stock closed at $12.51 per share with a market capitalization of $2.013 billion.
The London Company Small Cap Strategy stated the following regarding Certara, Inc. (NASDAQ:CERT) in its Q2 2024 investor letter:
“Certara, Inc. (NASDAQ:CERT) – Investor skepticism around guidance for an improving revenue outlook intensified following CERT’s most recent earnings report, causing the stock to underperform the broader market. We believe CERT owns unique software assets in an underpenetrated industry with plenty of whitespace for future growth. We are encouraged to see them investing through the cycle to come out the other side with a larger salesforce, a more cohesive software platform, and more abilities for cross selling. These actions should further solidify their already leading and protected positioning in bio simulation.”
A Biote-certified practitioner examining a patient’s blood sample under a microscope.
Certara, Inc. (NASDAQ:CERT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Certara, Inc. (NASDAQ:CERT) at the end of the first quarter which was 12 in the previous quarter. The second quarter revenue of Certara, Inc. (NASDAQ:CERT) grew 3% to $93.3 million. While we acknowledge the potential of Certara, Inc. (NASDAQ:CERT) 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.
The London Company Small Cap Strategy established a position in Certara, Inc. (NASDAQ:CERT) during Q1 2024. 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.
