Wasatch Global Investors, an asset management company, released its “Wasatch Small Cap Growth Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. Small-cap stocks experienced the most gains in 2023 and the first quarter of 2024, with names linked to the advancement of artificial intelligence (AI) leading the market. However, most equities fell in the second quarter of 2024, even while those who benefited from AI remained strong. Small-cap benchmarks consequently showed negative returns for the period. During the quarter, the Wasatch Small Cap Growth strategy declined and underperformed the benchmark Russell 2000® Growth Index, which fell -2.92%. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Wasatch Small Cap Growth Strategy highlighted stocks like Addus HomeCare Corporation (NASDAQ:ADUS), in the second quarter 2024 investor letter. Addus HomeCare Corporation (NASDAQ:ADUS) offers personal care services to elderly, chronically ill, disabled persons, and individuals who are at risk of hospitalization. The one-month return of Addus HomeCare Corporation (NASDAQ:ADUS) was -1.45%, and its shares gained 55.58% of their value over the last 52 weeks. On September 13, 2024, Addus HomeCare Corporation (NASDAQ:ADUS) stock closed at $130.13 per share with a market capitalization of $2.355 billion.
Wasatch Small Cap Growth Strategy stated the following regarding Addus HomeCare Corporation (NASDAQ:ADUS) in its Q2 2024 investor letter:
“In the Small Cap Growth strategy, new buys and complete sells amounted to about 5% of strategy assets during the second quarter. Among our buys, we added Addus HomeCare Corporation (NASDAQ:ADUS). The company seems well-positioned to benefit from what we believe are sensible government spending priorities. Addus provides a broad range of at-home social and medical services, which we think may be increasingly covered by Medicare and Medicaid.”
A nurse providing hospice care in a home setting, reassuring a patient’s family members.
Addus HomeCare Corporation (NASDAQ:ADUS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Addus HomeCare Corporation (NASDAQ:ADUS) at the end of the second quarter which was 23 in the previous quarter. Addus HomeCare Corporation’s (NASDAQ:ADUS) revenue for the second quarter of 2024 was $286.9 million, up 10.4% compared to Q2 2023. While we acknowledge the potential of Addus HomeCare Corporation (NASDAQ:ADUS) 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 Q2 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.
