Wasatch Global Investors, an asset management company, released its “Wasatch Micro Cap Value Strategy” second-quarter 2024 investor letter. A copy of the same can be downloaded here. During the second quarter, the strategy fell but significantly outperformed the benchmark Russell Microcap Index which declined -5.27%. The firm did not observe any major changes in its long-term investment position during the quarter. However, it acknowledges that the majority of equities fell as investors’ concerns about the possibility of a recession, higher-for-longer inflation, and interest rates. A small group of stocks that are thought to be doing well because of the artificial intelligence (AI) boom kept going up at the same time. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Wasatch Micro-Cap Value Strategy highlighted stocks like SiTime Corporation (NASDAQ:SITM), in the second quarter 2024 investor letter. SiTime Corporation (NASDAQ:SITM) is a silicon timing systems solutions provider. The one-month return of SiTime Corporation (NASDAQ:SITM) was 2.70%, and its shares gained 19.81% of their value over the last 52 weeks. On September 9, 2024, SiTime Corporation (NASDAQ:SITM) stock closed at $133.53 per share with a market capitalization of $3.089 billion.
Wasatch Micro-Cap Value Strategy stated the following regarding SiTime Corporation (NASDAQ:SITM) in its Q2 2024 investor letter:
“SiTime Corporation (NASDAQ:SITM) also contributed to strategy performance during the quarter. The company develops silicon-based timing components, which are superior to less-expensive quartz-based components. SiTime’s components have many applications in advanced computing. The stock was down early in the year when SiTime lowered earnings guidance based on temporarily weak consumer demand and bloated inventories. But we visited the company in Santa Clara, California, and came away from our visit even more optimistic that consumer demand could rebound. Additionally, we gained confidence in SiTime’s product differentiation and long-term competitive advantages over legacy quartz-based timing solutions. As a result, we bought more shares and increased our position size. During the second quarter, the stock was up based on exceptionally strong earnings and news that SiTime expects to see consistent demand from Apple, Inc. and other companies involved in the proliferation of AI.”
A series of industrial production lines, radiating silicon timing solutions to the world.
SiTime Corporation (NASDAQ:SITM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held SiTime Corporation (NASDAQ:SITM) at the end of the second quarter which was 14 in the previous quarter. SiTime Corporation’s (NASDAQ:SITM) second quarter revenue of $43.9 million exceeded expectations, representing 58% year-on-year increase and 33% sequential increase. While we acknowledge the potential of SiTime Corporation (NASDAQ:SITM) 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 another article, we discussed SiTime Corporation (NASDAQ:SITM) and shared Polen U.S. SMID Company Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.
