Brown Capital Management, an investment management company, released its “The Brown Capital Management Mid Company Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. The Mid Company Fund (Institutional shares) returned 5.21% in the quarter underperforming the 9.50% return for the Russell Midcap Growth Index. The strategy focuses on companies that offer mission-critical products and services that save time, lives, money, and headaches. In addition, check the fund’s top five holdings to know its best picks in 2024.
The Brown Capital Management Mid Company Fund highlighted stocks like Manhattan Associates, Inc. (NASDAQ:MANH), in the first quarter 2024 investor letter. Manhattan Associates, Inc. (NASDAQ:MANH) provides software solutions to manage supply chains, inventory, and omnichannel operations The one-month return of Manhattan Associates, Inc. (NASDAQ:MANH) was 7.71% and its shares gained 28.13% of their value over the last 52 weeks. On June 24, 2024, Manhattan Associates, Inc. (NASDAQ:MANH) stock closed at $241.48 per share with a market capitalization of $14.979 billion.
The Brown Capital Management Mid Company Fund stated the following regarding Manhattan Associates, Inc. (NASDAQ:MANH) in its first quarter 2024 investor letter:
“Manhattan Associates, Inc. (NASDAQ:MANH) provides supply-chain execution software for warehouse management, transportation management, inventory, planning and scheduling, as well as integrated logistics. The company’s mission-critical tools play a pivotal role in allowing its customers to deliver a seamless shopping experience across physical stores, online platforms and mobile devices, ensuring rapid delivery and hassle-free returns, which are crucial to their operations. In 2017, Manhattan began a multiyear investment to update its platform for the cloud, and management’s execution has been excellent. The company’s cloud offering provides superior access to innovation, with updates every 90 days instead of every five years with on-premise software. One of the company’s newer solutions, Point of Sale (POS), is further expanding the company’s growth opportunity into store management with a single platform that provides all in-store selling and fulfillment tools.
During the quarter, Manhattan’s strong share price performance was driven by impressive fourth quarter financial results that benefited from a healthy demand environment and continued solid cloud deployments. Revenue increased 20% year over year with cloud-subscription growth even stronger at 38%. GAAP operating margins reached 25%, which represented an expansion of 200 basis points year over year and meaningfully exceeded consensus expectations. In addition, the company’s remaining performance obligation (RPO), a leading indicator of future revenue growth similar to backlog, increased 36% year over year. Management also issued strong 2024 guidance for revenue, margins and earnings per share. The company’s POS initiative, which could double the size of the company’s total addressable market, is seeing early success, with 22 customers already signed up. Due to the company’s differentiated value proposition for customers, strong execution and pipeline of new products, we expect Manhattan to grow revenue and profitability for many years into the future.”
A woman and man in formal attire in a meeting room discussing the latest enterprise solutions technology from the company.
Manhattan Associates, Inc. (NASDAQ:MANH) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Manhattan Associates, Inc. (NASDAQ:MANH) at the end of the first quarter which was 32 in the previous quarter. While we acknowledge the potential of Manhattan Associates, Inc. (NASDAQ:MANH) 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 Manhattan Associates, Inc. (NASDAQ:MANH) in another article and shared the list of biggest supply chain companies to know. Manhattan Associates, Inc. (NASDAQ: MANH) was one of the top contributors to the Brown Capital Management Mid Company Fund in the previous quarter as well. 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.
