Wasatch Global Investors, an investment management firm, released its “Wasatch Micro Cap Value Strategy” third quarter 2023 investor letter. A copy of the same can be downloaded here. The strategy outperformed its benchmark during the quarter. The quality-oriented positioning was the main reason for the strategy’s outperformance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Wasatch Micro Cap Value Strategy highlighted stocks like Harmonic Inc. (NASDAQ:HLIT) in the third quarter 2023 investor letter. Headquartered in San Jose, California, Harmonic Inc. (NASDAQ:HLIT) offers video delivery software, products, system solutions, and services. On December 22, 2023, Harmonic Inc. (NASDAQ:HLIT) stock closed at $12.36 per share. One-month return of Harmonic Inc. (NASDAQ:HLIT) was 12.67%, and its shares lost 4.92% of their value over the last 52 weeks. Harmonic Inc. (NASDAQ:HLIT) has a market capitalization of $1.387 billion.
Wasatch Micro Cap Value Strategy made the following comment about Harmonic Inc. (NASDAQ:HLIT) in its Q3 2023 investor letter:
“Another significant detractor was Harmonic Inc. (NASDAQ:HLIT), which designs, manufactures and markets digital and fiber-optic systems that enable cable, satellite and wireless operators to deliver video, internet, telephony and high-speed data services. The company’s solutions also assist cable providers and multi-service operators (MSOs) in the capital-efficient upgrading of networks. The stock was down due to a report that Q2 revenues and earnings declined compared to year-ago results. Harmonic attributed the declines to hardware sales delays as customers digested existing inventories. While the company forecasts better results in quarters beyond Q3, investors have been skeptical of revenues and earnings that are more heavily weighted further into the future because a recession could derail optimistic projections. In our view, the stock could jump if Harmonic performs better than investors fear. Moreover, regardless of what happens in the short term, we like the company’s longer-term positioning—which includes signed contracts with new customers. Regarding the competitive cable market, we believe Harmonic has carved out a unique niche that enables outsized economics as the category leader. The company has favorable partnerships with Comcast and Charter Communications, the two largest MSOs in the industry, and we think other MSOs will join Harmonic over the next three to five years.”
A video-processing suite with technicians at work, highlighting the company’s production capabilities.
Harmonic Inc. (NASDAQ:HLIT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Harmonic Inc. (NASDAQ:HLIT) at the end of third quarter which was 27 in the previous quarter.
We discussed Harmonic Inc. (NASDAQ:HLIT) in another article and shared the list of best U.S. stocks to buy now under $10. In addition, please check out our hedge fund investor letters Q3 2023 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.
