Here’s Why You Should Consider Investing in Red Violet (RDVT)

Wasatch Global Investors, an investment management firm, published its “Wasatch Micro Cap Value Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. During the fourth quarter of 2021, the Wasatch Micro Cap Value Fund—Investor Class rose 0.98% and outperformed the benchmark Russell Microcap® Index, which declined -2.66%. For the full year, the Fund gained 26.78% as the benchmark added 19.34%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Wasatch Micro Cap Value Fund, in its Q4 2021 investor letter, mentioned Red Violet, Inc. (NASDAQ: RDVT) and discussed its stance on the firm. Red Violet, Inc. is a Boca Raton, Florida-based software and services company with a $326.6 million market capitalization. RDVT delivered a -38.67% return since the beginning of the year, while its 12-month returns are up by 19.02%. The stock closed at $24.34 per share on March 04, 2022.

Here is what Wasatch Micro Cap Value Fund has to say about Red Violet, Inc. in its Q4 2021 investor letter:

“The individual holding that contributed the most to Fund performance for the fourth quarter was Red Violet, Inc. (RDVT)—a software and services company that specializes in the collection and analysis of big data and leverages its proprietary machine-learning software to turn seemingly disparate data points into real-time insights on people, businesses and assets. Although we no longer consider Red Violet inexpensive, we still think the stock has room to run. The global pandemic has bolstered several trends regarding digital transformation as well as the pace of technological adoption by businesses and consumers. We believe these macro trends will provide a persistent tailwind for companies like Red Violet and support an acceleration of growth.”

Our calculations show that Red Violet, Inc. (NASDAQ: RDVT) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. RDVT was in 12 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 6 funds in the previous quarter. Red Violet, Inc. (NASDAQ: RDVT) delivered a -34.64% return in the past 3 months. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.