Wasatch Global Investors, an asset management company, released its “Wasatch Small Cap Growth Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. During the first quarter, the strategy gained but underperformed the benchmark, the Russell 2000 Growth Index which rose 7.58%. The broader Russell 2000 Index increased 5.18% during the same period. Holdings in health care and consumer staples—and lack of exposure in materials, utilities, and communication services- contributed to the relative performance of the strategy, while holdings in information technology, consumer discretionary, and industrials detracted. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Wasatch Small Cap Growth Strategy highlighted stocks like Agilysys, Inc. (NASDAQ:AGYS), in the first quarter 2024 investor letter. Agilysys, Inc. (NASDAQ:AGYS) develops and markets software-enabled solutions and services to the hospitality industry. The one-month return of Agilysys, Inc. (NASDAQ:AGYS) was -1.14%, and its shares gained 25.08% of their value over the last 52 weeks. On June 10, 2024, Agilysys, Inc. (NASDAQ:AGYS) stock closed at $91.11 per share with a market capitalization of $2.501 billion.
Wasatch Small Cap Growth Strategy stated the following regarding Agilysys, Inc. (NASDAQ:AGYS) in its first quarter 2024 investor letter:
“In the strategy, we’ve been seeking to increase overall portfolio diversification by adding more positions. Among our buys during the first quarter, we added Agilysys, Inc. (NASDAQ:AGYS), which develops application software for point-of-sale, property-management, inventory and procurement applications. The company specializes in the hospitality and retail industries world-wide, and its solutions can be implemented on wireless and mobile devices. Agilysys recently modernized its software, which has proved fortuitous as post-pandemic consumer and business travel has accelerated. Late in 2022, the company announced an agreement to deploy its cloud-based property-management software across Marriott’s luxury, premium and select service hotels in the United States and Canada. Beyond the incremental earnings and cash flows related to Marriott, the agreement should help Agilysys win new customers on an ongoing basis. In a recent report, Agilysys highlighted strong growth rates across several markets including hotels, cruise ships and non-gaming resorts.”
An expert IT engineer demonstrating a new software solution to hotel managers in a boardroom.
Agilysys, Inc. (NASDAQ:AGYS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Agilysys, Inc. (NASDAQ:AGYS) at the end of the first quarter which was 21 in the previous quarter. Agilysys, Inc.’s (NASDAQ:AGYS) revenue for the current was $62.2 million a 17.6% increase over the total net revenue of $52.9 million for the prior year period. While we acknowledge the potential of Agilysys, Inc. (NASDAQ:AGYS) 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 Agilysys, Inc. (NASDAQ:AGYS) and shared the list of best cruise stocks to buy. 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.
