Wasatch Global Investors, an asset management company, released its “Wasatch Micro Cap Growth—U.S. Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. During the first quarter, the micro-cap equities performed well. The strategy had a double-digit gain in the quarter, outperforming the Russell Microcap Growth Index benchmark, which rose 6.60%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Wasatch Micro Cap Growth—U.S. Strategy highlighted stocks like CyberArk Software Ltd. (NASDAQ:CYBR) in the first quarter 2024 investor letter. Incorporated in 1996, CyberArk Software Ltd. (NASDAQ:CYBR) provides a platform for identity security solutions and services. The one-month return of CyberArk Software Ltd. (NASDAQ:CYBR) was 1.58%, and its shares gained 69.64% of their value over the last 52 weeks. On June 17, 2024, CyberArk Software Ltd. (NASDAQ:CYBR) stock closed at $253.65 per share with a market capitalization of $10.944 billion.
Wasatch Micro Cap Growth—U.S. Strategy stated the following regarding CyberArk Software Ltd. (NASDAQ:CYBR) in its first quarter 2024 investor letter:
“During the quarter we sold a handful of positions, including CyberArk Software Ltd. (NASDAQ:CYBR), a fast-growing provider of digital-security solutions that protect privileged accounts, applications and sensitive information from internal and external cyberattacks. The company’s management has done an excellent job transitioning most of its business from on-premises installation to software-as-a-service, in which customers pay by subscription for the protection they need. Our original investment thesis was that the transition would result in a higher stock price because revenues and earnings would become more predictable under a subscription-based model. We were correct in our assessment, and CyberArk’s success has since caused the company’s size to increase beyond our typical market-cap range. What was a $1.4 billion company when we first bought it had appreciated to $10.3 billion when we exited the position.”
A data center with a repetetive design of computer servers, showing the companies’ efficient and secure IT infrastructure.
CyberArk Software Ltd. (NASDAQ:CYBR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held CyberArk Software Ltd. (NASDAQ:CYBR) at the end of the first quarter which was 50 in the previous quarter. While we acknowledge the potential of CyberArk Software Ltd. (NASDAQ:CYBR) 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 CyberArk Software Ltd. (NASDAQ:CYBR) and shared Baron Discovery Fundy’s views on the company. In addition, please check out our hedge fund investor letters Q1 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.
