Next Century Growth Investors, LLC, an investment Management Company, released its “Small Cap Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. The market continued its rally in the first quarter of 2024; it paused in January but resumed its upward trajectory in February and March. In the quarter the small-cap strategy generated gains from most sectors, except technology where two tech stocks contributed significantly to the index performance. Against this backdrop, the strategy returned 9.35% (net of fees) in the quarter, compared to a 7.58% return for the Russell 2000 Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Next Century Growth Small Cap Strategy highlighted stocks like JFrog Ltd. (NASDAQ:FROG), in the first quarter 2024 investor letter. Incorporated in 2008, JFrog Ltd. (NASDAQ:FROG) provides an end-to-end hybrid software supply chain platform. The one-month return of JFrog Ltd. (NASDAQ:FROG) was 21.60%, and its shares gained 37.97% of their value over the last 52 weeks. On July 1, 2024, JFrog Ltd. (NASDAQ:FROG) stock closed at $37.43 per share with a market capitalization of $4.058 billion.
Next Century Growth Small Cap Strategy stated the following regarding JFrog Ltd. (NASDAQ:FROG) in its first quarter 2024 investor letter:
“JFrog Ltd. (NASDAQ:FROG) provides a software supply chain platform that enables organizations to continuously and securely create and deliver software updates across any system. The core offering, called Artifactory, is a system of record for all software development for an organization. Artifactory is used by over 80% of the Fortune 1000, demonstrating the market leading position of the company. JFrog has multiple avenues for continued durable revenue growth, including continued expansion of Artifactory and a cross-sell opportunity of recently launched offerings including security. In addition, JFrog has successfully been expanding profit margins, which is expected to continue into the future.”
A corporate executive standing in front of a large monitor, demonstrating the DevOps package repository.
JFrog Ltd. (NASDAQ:FROG) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held JFrog Ltd. (NASDAQ:FROG) at the end of the first quarter which was 40 in the previous quarter. JFrog Ltd. (NASDAQ:FROG) delivered total revenue of $100.3 million in the first quarter of 2024, an increase of 26% year over year. While we acknowledge the potential of JFrog Ltd. (NASDAQ:FROG) 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.
We discussed JFrog Ltd. (NASDAQ:FROG) in another article and shared TimesSquare Capital U.S. Small Cap Growth Strategy’s views on the company. 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.
