Riverwater Partners, an investment management company, released its “Sustainable Value Strategy” Q4 2024 investor letter. A copy of the letter can be downloaded here. The strategy outperformed its benchmark, the Russell 2500 Value Index, over the past year. The relative outperformance was mainly driven by positive stock selection while allocation effect also contributed positively. The strategy also outperformed its benchmark in Q4. Both the allocation impact and the selection effect contributed equally to the relative positive returns. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Riverwater Partners Sustainable Value Strategy highlighted stocks like InterDigital, Inc. (NASDAQ:IDCC) in the fourth quarter 2024 investor letter. InterDigital, Inc. (NASDAQ:IDCC) is a global research and development company that focuses on wireless, visual, artificial intelligence (AI), and related technologies. The one-month return of InterDigital, Inc. (NASDAQ:IDCC) was -9.66%, and its shares gained 60.38% of their value over the last 52 weeks. On January 17, 2025, InterDigital, Inc. (NASDAQ:IDCC) stock closed at $171.69 per share with a market capitalization of $4.351 billion.
Riverwater Partners Sustainable Value Strategy stated the following regarding InterDigital, Inc. (NASDAQ:IDCC) in its Q4 2024 investor letter:
“InterDigital, Inc. (NASDAQ:IDCC) was the top performing stock in Q4. InterDigital’s strong performance reflects ongoing momentum in its intellectual property licensing business and favorable litigation outcomes. With the potential to achieve $650 million in annual recurring revenues in 2025, and $1 billion by 2030, we believe IDCC remains well-positioned for continued growth in 2025.”
A technician installing advanced cellular equipment at a 5G cell tower.
InterDigital, Inc. (NASDAQ:IDCC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held InterDigital, Inc. (NASDAQ:IDCC) at the end of the third quarter which was 29 in the previous quarter. InterDigital, Inc.’s (NASDAQ:IDCC) third-quarter total revenue of $129 million was well above the expectations. While we acknowledge the potential of InterDigital, Inc. (NASDAQ:IDCC) 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 InterDigital, Inc. (NASDAQ:IDCC) and shared FPA Queens Road Small Cap Value Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.