Renaissance Investment Management, an investment management company, released its Q4 2024 “Small Cap Growth Strategy” investor letter. A copy of the letter can be downloaded here. The Russell 2000 Growth Index generated a return of 1.7% in the fourth quarter, bringing the yearly returns to 15.2%. The portfolio generated positive returns in the fourth quarter and outperformed the Index. The outperformance was driven by stock selection in Information Technology and underweight position and stock selection in Health Care, while stock selection in Communication Services and Consumer Discretionary detracted. For more information on the fund’s best picks in 2024, please check its top five holdings.
In its fourth quarter 2024 investor letter, Renaissance Investment Management Small Cap Growth Strategy emphasized stocks such as TransMedics Group, Inc. (NASDAQ:TMDX). TransMedics Group, Inc. (NASDAQ:TMDX) is a medical technology company. The one-month return of TransMedics Group, Inc. (NASDAQ:TMDX) was 1.23%, and its shares lost 9.40% of their value over the last 52 weeks. On April 1, 2025, TransMedics Group, Inc. (NASDAQ:TMDX) stock closed at $68.27 per share with a market capitalization of $2.298 billion.
Renaissance Investment Management Small Cap Growth Strategy stated the following regarding TransMedics Group, Inc. (NASDAQ:TMDX) in its Q4 2024 investor letter:
“TransMedics Group, Inc. (NASDAQ:TMDX) detracted the most from performance in the quarter as the organ trans plant solutions company reported third-quarter results that were modestly below expectations. However, the company’s proprietary organ preservation system coupled with its logistics solutions should allow significant opportunities for market-share gain for a number of years, and we believe that long-term growth opportunities remain intact.
Trading and stock movements during the quarter led to several changes in portfolio sector weights. The Information Technology, Health Care, Financials, and Consumer Staples sector weights increased during the quarter, while the Industrials, Consumer Discretionary, Energy, and Communication Services sector weights decreased.”
A surgeon in a modern operating theatre performing a transplant surgery with medical technology.
TransMedics Group, Inc. (NASDAQ:TMDX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held TransMedics Group, Inc. (NASDAQ:TMDX) at the end of the fourth quarter compared to 32 in the third quarter. TransMedics Group, Inc. (NASDAQ:TMDX) reported $121.6 million in revenues in the fourth quarter, representing 49.8% year-over-year growth and 11.8% sequential growth from Q3 2024. While we acknowledge the potential of TransMedics Group, Inc. (NASDAQ:TMDX) 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 covered TransMedics Group, Inc. (NASDAQ:TMDX) in another article, where we shared Carillon Eagle Small Cap Growth Fund’s views on the company. 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.