Summers Value Partners, an investment management company, released its fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The Summers Value Fund LP returned a net1 return of 27.4% in 2024 outperforming 11.3% return for its primary benchmark, the Russell 2000 Index ETF (IWM). The fund also outperformed its secondary benchmark, the Russell 2000 Value Index ETF (IWN), which returned 7.7% for the year. The Fund achieved profitability on both the long and short positions in its portfolio throughout the year. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Summers Value Partners highlighted stocks like UFP Technologies, Inc. (NASDAQ:UFPT), in the fourth quarter 2024 investor letter. UFP Technologies, Inc. (NASDAQ:UFPT) manufactures solutions for medical devices, sterile packaging, and other highly engineered custom products. The one-month return of UFP Technologies, Inc. (NASDAQ:UFPT) was 13.06%, and its shares gained 56.91% of their value over the last 52 weeks. On January 30, 2024, UFP Technologies, Inc. (NASDAQ:UFPT) stock closed at $275.97 per share with a market capitalization of $2.118 billion.
Summers Value Partners stated the following regarding UFP Technologies, Inc. (NASDAQ:UFPT) in its Q4 2024 investor letter:
“UFP Technologies, Inc. (NASDAQ:UFPT): UFPT has been a strong performer since we first purchased it in 2020. The company continued its strong performance in 2024, benefiting from its growing relationship with Intuitive Surgical (ISRG). UFPT announced three acquisitions during the year, which we believe will drive further growth from a scale and profitability standpoint. The management team has demonstrated exceptional proficiency in making smart acquisitions, always with the goal of increasing the company’s value to its customers. Management used debt and existing cash to fund the acquisitions, and we believe the company will look to rapidly de-leverage its balance sheet in future periods. During the year, we trimmed our exposure to UFPT as the stock’s valuation increased, and we have now sold 90% of our original position.”
A doctor holding a specialized foam device, demonstrating the companies medical contributions.
UFP Technologies, Inc. (NASDAQ:UFPT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held UFP Technologies, Inc. (NASDAQ:UFPT) at the end of the third quarter which was 19 in the previous quarter. While we acknowledge the potential of UFP Technologies, Inc. (NASDAQ:UFPT) 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 UFP Technologies, Inc. (NASDAQ:UFPT) and shared Brown Capital Management Small Company Fund’s 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.