Should You be Confident in Latch (LTCH)?

Tourlite Capital Management, an investment management firm, released its fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. Tourlite Fund, LP returned 0.4% for Q4 2024 and 14.2% for 2024. Since inception, the fund has annualized returns of 10.2% compared to 11.6% and 4.2% for the S&P 500 and the Russell 2000 Indexes. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, Tourlite Capital Management emphasized stocks such as Latch, Inc. (OTC:LTCH). Latch, Inc. (OTC:LTCH) is a technology company that offers a cloud-based software-as-a-service platform to address the access requirements of modern multifamily buildings. The one-month return of Latch, Inc. (OTC:LTCH) was 78.44%, and its shares lost 67.11% of their value over the last 52 weeks. On March 6, 2025, Latch, Inc. (OTC:LTCH) stock closed at $0.25 per share with a market capitalization of $40.24 million.

Tourlite Capital Management stated the following regarding Latch, Inc. (OTC:LTCH) in its Q4 2024 investor letter:

“Latch, Inc. (OTC:LTCH) was a significant detractor last year, with its share price continuing to decline and trading at a discount to cash. In November, the company announced that Jamie Siminoff would be stepping down at the end of 2024. This was viewed negatively by the market, as there had been optimism around Jamie’s leadership since he joined over a year ago.

I had the opportunity to meet with Jamie and several team members at the ISC East Convention in New York in November. Based on these discussions, it appears the business is performing well operationally, with the key challenge now being execution.

In December, Latch released its long-awaited 2022 financials, which we see as a positive step forward. This paves the way for several potential catalysts in 2025, including the completion of current filings (2023 and 2024 financials) and the possibility of an uplisting.”

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Latch, Inc. (OTC:LTCH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the potential of Latch, Inc. (OTC:LTCH) 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 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.