Laughing Water Capital, an investment management company, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, Class A interests in Laughing Water Capital returned about 18.6% bringing year-to-date returns to approximately 39.5%. The SP500TR and R2000 returned 2.4% and 0.3% in the quarter and 25% and 11.5% year-to-date, respectively. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Laughing Water Capital highlighted stocks like NextNav Inc. (NASDAQ:NN), in the fourth quarter 2024 investor letter. NextNav Inc. (NASDAQ:NN) provides next generation positioning, navigation, and timing (PNT) solutions. One-month return of NextNav Inc. (NASDAQ:NN) was -6.64%, and its shares gained 267.55% of their value over the last 52 weeks. On January 21, 2025, NextNav Inc. (NASDAQ:NN) stock closed at $13.93 per share with a market capitalization of $1.819 billion.
Laughing Water Capital stated the following regarding NextNav Inc. (NASDAQ:NN) in its Q4 2024 investor letter:
“NextNav Inc. (NASDAQ:NN) – Nextnav, our next-gen GPS / wireless spectrum investment, was our largest contributor to 2024 returns, and remains our largest position. At this time we are in a holding pattern with Nextnav as we wait for updates from the Federal Communications Commission (FCC) on the Company’s petition to update the rules that govern the 900 MHz spectrum band in a way that will allow for the creation of a terrestrial GPS system in the U.S., as well as ~15 MHz of 5G spectrum.
There is some uncertainty surrounding this process, but commentary from incoming FCC Chair Brendan Carr and other Commissioners suggests the chances for approval are favorable as terrestrial GPS is a National Security priority, and refilling the spectrum pipeline is an FCC priority.
The stock has been under heavy pressure in recent weeks as two different private equity funds – one a 2005 vintage, and the other a 2012 vintage – appear to have reached the end of their fund lives and are thus aggressively selling shares. I suspect this overhang will clear with time…” (Click here to read the full text)
A close-up of an engineer working on the development of a new air navigation system.
NextNav Inc. (NASDAQ:NN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held NextNav Inc. (NASDAQ:NN) at the end of the third quarter which was 19 in the previous quarter. NextNav Inc.’s (NASDAQ:NN) revenue in the third quarter was $1.6 million, a $0.6 million increase from $1.0 million in the prior year period. While we acknowledge the potential of NextNav Inc. (NASDAQ:NN) 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 previously discussed NextNav Inc. (NASDAQ:NN) in another article, where we shared the list of best small-cap stocks poised to outperform in 2025. 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.