Riverwater Partners, an investment management company, released its “Micro Opportunities Strategy” Q4 2024 investor letter. A copy of the letter can be downloaded here. Although the Micro Opportunities Strategy had impressive absolute returns in the fourth quarter, it fell short of the benchmark, which resulted in a year-over-year underperformance. The quarterly results were primarily driven by stock selection. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Riverwater Partners Micro Opportunities Strategy highlighted stocks like SuRo Capital Corp. (NASDAQ:SSSS) in the fourth quarter 2024 investor letter. SuRo Capital Corp. (NASDAQ:SSSS) is a venture capital company focuses in growth capital, emerging growth, late stage and venture capital-backed private companies.. One-month return of SuRo Capital Corp. (NASDAQ:SSSS) was 8.08%, and its shares gained 68.95% of their value over the last 52 weeks. On January 21, 2025, SuRo Capital Corp. (NASDAQ:SSSS) stock closed at $6.42 per share with a market capitalization of $151.522 million.
Riverwater Partners Micro Opportunities Strategy stated the following regarding SuRo Capital Corp. (NASDAQ:SSSS) in its Q4 2024 investor letter:
“Another addition to the portfolio was SuRo Capital Corp. (NASDAQ:SSSS), a publicly traded investment fund specializing in venture-backed private companies. This investment provides exposure to high-growth themes like AI, with holdings in companies such as OpenAI and CoreWeave. SSSS also trades at a significant discount to its net asset value, which we believe is unwarranted given the potential for a more active IPO market in 2025. Notably, ServiceTitan (TTAN), one of SSSS’s investments, recently went public and saw a strong market debut. We expect more companies in its portfolio to follow suit, which should help close the valuation gap in SSSS stock.”
A portfolio manager wearing a suit and tie, looking at a graph representing the growth of the business development company.
SuRo Capital Corp. (NASDAQ:SSSS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 6 hedge fund portfolios held SuRo Capital Corp. (NASDAQ:SSSS) at the end of the third quarter which was 8 in the previous quarter. While we acknowledge the potential of SuRo Capital Corp. (NASDAQ:SSSS) 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 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.