White Falcon Capital Management, an investment fund manager, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. It was a good year for the fund on an absolute basis. However, the fund was unable to keep up with a fast charging market despite outperforming the popular indices for two years. It didn’t witness any notable increases, and didn’t suffer any large losses. In the quarter, the fund returned 5.5% compared to an 8.9% return for the S&P 500 (CAD), 5.0% for the MSCI All Country (CAD), and 3.8% for the S&P TSX TR. In addition, please check the fund’s top five holdings to know its best picks in 2024.
White Falcon Capital Management highlighted stocks like Endava plc (NYSE:DAVA), in the fourth quarter 2024 investor letter. Endava plc (NYSE:DAVA) is a technology services provider for clients in the consumer products, healthcare, mobility, and retail verticals. The one-month return of Endava plc (NYSE:DAVA) was 4.13%, and its shares lost 60.02% of their value over the last 52 weeks. On January 17, 2025, Endava plc (NYSE:DAVA) stock closed at $31.55 per share with a market capitalization of $1.876 billion.
White Falcon Capital Management stated the following regarding Endava plc (NYSE:DAVA) in its Q4 2024 investor letter:
“Our IT services holdings, Endava plc (NYSE:DAVA) and EPAM, are showing positive inflections in key metrics. We believe these companies are entering a strong growth cycle, driven by the increasing need for businesses to modernize their core technology stacks in order to effectively implement AI solutions. Both holdings have significantly strengthened their operations through counter-cyclical acquisitions. In fact, EPAM made four acquisitions over the past 18 months, which, as the market cycle shifts, will substantially enhance their earnings potential.”
A tech expert in a suit presenting a new IT strategy in front of a corporate audience.
Endava plc (NYSE:DAVA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Endava plc (NYSE:DAVA) at the end of the third quarter which was 16 in the previous quarter. In the September quarter, Endava’s revenue totaled GBP195.1 million compared to GBP188.4 million in the same period in the prior year. While we acknowledge the potential of Endava plc (NYSE:DAVA) 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 Endava plc (NYSE:DAVA) and shared Baron Funds’ views on the company. Endava plc (NYSE:DAVA) detracted from the performance of White Falcon Capital Management in Q3 2024. In addition, please check out our hedge fund investor letters Q4 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.