Scout Investments, Inc, an affiliate of Carillon Tower Advisers, released the “Carillon Scout Small Cap Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the small-cap growth market was down. Higher quality, earners, and larger small caps were among the traits of many of the stocks that outperformed higher-priced securities. Consumer staples and communication services were among the Russell 2000® Growth Index’s top-performing sectors; real estate and consumer discretionary were among the worst-performing. During the second quarter, the S&P 500 Index beat the Russell 2000® Index by almost 7.6%. In comparison to their large-cap counterparts, small-cap valuations remain attractive, and they are cheaper when compared to historical ratios. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Carillon Scout Small Cap Fund highlighted stocks like Credo Technology Group Holding Ltd (NASDAQ:CRDO), in the second quarter 2024 investor letter. Credo Technology Group Holding Ltd (NASDAQ:CRDO) is a high-speed connectivity solutions provider for optical and electrical Ethernet applications. The one-month return of Credo Technology Group Holding Ltd (NASDAQ:CRDO) was -12.13%, and its shares gained 85.86% of their value over the last 52 weeks. On September 13, 2024, Credo Technology Group Holding Ltd (NASDAQ:CRDO) stock closed at $28.51 per share with a market capitalization of $4.64 billion.
Carillon Scout Small Cap Fund stated the following regarding Credo Technology Group Holding Ltd (NASDAQ:CRDO) in its Q2 2024 investor letter:
“Credo Technology Group Holding Ltd (NASDAQ:CRDO) provides high-speed optical and electrical connectivity products for data centers. The stock performed well on the back of accelerating demand driven by artificial intelligence (AI). The company announced rapidly growing sales to a second large hyperscale customer.”
An engineer in a cleanroom testing and tweaking an integrated circuit.
Credo Technology Group Holding Ltd (NASDAQ:CRDO) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Credo Technology Group Holding Ltd (NASDAQ:CRDO) at the end of the second quarter which was 27 in the previous quarter. In the most recent quarter, Credo Technology Group Holding Ltd (NASDAQ:CRDO) reported $59.7 million in revenues and non-GAAP gross margin of 62.9%. While we acknowledge the potential of Credo Technology Group Holding Ltd (NASDAQ:CRDO) 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 Credo Technology Group Holding Ltd (NASDAQ:CRDO) and shared the list of best new tech stocks to buy. NCG Small Cap Strategy established a position in Credo Technology Group Holding Ltd (NASDAQ:CRDO) during Q2 2024. In addition, please check out our hedge fund investor letters Q2 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.
