Rogue Funds, an investment management company, released its fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned 8.59% net of fees in the quarter. This quarter, the Fund’s volatility has increased significantly, and the firm anticipates that it will continue to do so. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
In its fourth quarter 2024 investor letter, Rogue Funds emphasized stocks such as Aware, Inc. (NASDAQ:AWRE). Aware, Inc. (NASDAQ:AWRE) is an authentication company that offers biometrics software products and solutions. The one-month return of Aware, Inc. (NASDAQ:AWRE) was -3.16%, and its shares lost 18.40% of their value over the last 52 weeks. On February 14, 2025, Aware, Inc. (NASDAQ:AWRE) stock closed at $1.6075 per share with a market capitalization of $34.085 million.
Rogue Funds stated the following regarding Aware, Inc. (NASDAQ:AWRE) in its Q4 2024 investor letter:
“We sold out of Aware, Inc. (NASDAQ:AWRE) for concerns of future performance and for tax harvesting purposes. Aware continues to underperform in comparison to other companies of similar sizes within their field. The company is bloated and although costs are fixed its growth is slower than comparable companies, showing that it is losing market share. This causes me to suspect either the sales force is incompetent (which is possible), their product is not being implemented appropriately, or it is not as good as I expected. When communicating with management, I was disappointed in their denial of the situation even when I gave them examples of fixed cost, quick growing competitors, at the same size. The commercial part of their business seems like it will bloat costs, without any true plan to increase revenue meaningfully. We were heavily protected to the downside on this position due to their extremely large cash position which is why I didn’t mind carrying a large position. With a new CEO coming into the situation, I have no idea what will happen, so, for now we will sit on the sidelines and watch attentively.”
A female customer using Knomi mobile biometric authentication framework to log into her app account.
Aware, Inc. (NASDAQ:AWRE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 5 hedge fund portfolios held Aware, Inc. (NASDAQ:AWRE) at the end of the third quarter which was 4 in the previous quarter. Aware, Inc.’s (NASDAQ:AWRE) total revenue came in at $3.8 million in the third quarter compared to $6.4 million in Q3 of last year. While we acknowledge the potential of Aware, Inc. (NASDAQ:AWRE) 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 Aware, Inc. (NASDAQ:AWRE) and shared Rogue Funds’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.