Mairs & Power, an investment advisor, released the “Mairs & Power Growth Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The stock market was surprisingly calm in the fourth quarter, despite some upheaval domestically and abroad. The market performance drivers in 2024 were mega cap Technology stocks. The fund had another positive year in 2024 and ended with 19.62% gain. The S&P Total Return (TR) was up 25.02%, and the Fund’s peer group, as measured by the Morningstar Large Blend Category, was up 20.51% over the same period of time. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Mairs & Power Growth Fund emphasized stocks such as Clearfield, Inc. (NASDAQ:CLFD). Headquartered in Minneapolis, Minnesota, Clearfield, Inc. (NASDAQ:CLFD) manufactures and distributes fiber connectivity products. The one-month return of Clearfield, Inc. (NASDAQ:CLFD) was -20.04%, and its shares gained 12.07% of their value over the last 52 weeks. On February 19, 2025, Clearfield, Inc. (NASDAQ:CLFD) stock closed at $32.88 per share with a market capitalization of $464.644 million.
Mairs & Power Growth Fund stated the following regarding Clearfield, Inc. (NASDAQ:CLFD) in its Q4 2024 investor letter:
“Given this backdrop, we continue to add to our small cap holdings and initiated a position in Clearfield, Inc. (NASDAQ:CLFD), a fiber optics product provider based in Minneapolis, Minnesota. The company provides a number of cabinets, cassettes, microducts, optical components, terminals, and wall boxes necessary in the management, protection, and delivery of fiber optic solutions. Many of its products allow for labor savings, which should be in high demand given the current shortage of fiber installers. Spurred on by cloud computing, the Internet of Things, and generative AI, telecoms continue to roll out fiber networks nationwide. Government-funded efforts are also expanding fiber infrastructure in underserved areas in the hopes of closing the digital divide, ensuring all Americans have access to fast, reliable high-speed Internet. Clearfield’s products should benefit immensely from both privately-and-publicly-funded fiber.”
An image depicting a group of technicians inspecting a communication equipment system in a data center.
Clearfield, Inc. (NASDAQ:CLFD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Clearfield, Inc. (NASDAQ:CLFD) at the end of the fourth quarter compared to 14 in the third quarter. in Q1 fiscal 2025, Clearfield, Inc. (NASDAQ:CLFD) reported net sales of $35.5 million, meeting expectations, and a net loss per share of $0.13 which was below the guidance range. While we acknowledge the potential of Clearfield, Inc. (NASDAQ:CLFD) 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 addition, please check out our hedge fund investor letters Q4 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.