The London Company, an investment management company, released “The London Company Small Cap Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund fell 5.8% (5.9%, net) compared to a 3.3% decrease in the Russell 2000 Index. The positive impact of sector allocation was mitigated by stock selection in the second quarter. For more information on the fund’s top picks in 2024, please check its top five holdings.
The London Company Small Cap Strategy highlighted stocks like DoubleVerify Holdings, Inc. (NYSE:DV), in the second quarter 2024 investor letter. DoubleVerify Holdings, Inc. (NYSE:DV) is a software platform provider for digital media measurement and data analytics. The one-month return of DoubleVerify Holdings, Inc. (NYSE:DV) was -5.81%, and its shares lost 40.84% of their value over the last 52 weeks. On August 9, 2024, DoubleVerify Holdings, Inc. (NYSE:DV) stock closed at $18.79 per share with a market capitalization of $3.193 billion.
The London Company Small Cap Strategy stated the following regarding DoubleVerify Holdings, Inc. (NYSE:DV) in its Q2 2024 investor letter:
“Initiated: DoubleVerify Holdings, Inc. (NYSE:DV) – DV develops software platforms for digital media measurement, data, and analytics. DV sells a critical insurance-like product known as “ad verification,” designed to create transparency, eliminate fraud, and drive ad-spending optimization. Ad verification has reached a point of mass acceptance among digital ad buyers due to its measurable low cost/high reward value proposition. DV operates in a duopoly where it commands the leading market position (>50% market share), by focusing on product innovation rather than sales expansion. DV’s business should continue to benefit from secular tailwinds in digital advertising. Incremental revenue growth should be accretive to returns on capital, given the its high cash margins and minimal capex needs. We initiated our position following a pullback, allowing us to purchase an advantaged company growing at a double- digit rate, with high margins, at a market multiple.”
An experienced advertiser analyzing the programmatic advertising inventory space.
DoubleVerify Holdings, Inc. (NYSE:DV) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held DoubleVerify Holdings, Inc. (NYSE:DV) at the end of the first quarter which was 27 in the previous quarter. In the second quarter, DoubleVerify Holdings, Inc. (NYSE:DV) reported to $156 million in revenue, up 17% from Q2 2023. While we acknowledge the potential of DoubleVerify Holdings, Inc. (NYSE:DV) 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 DoubleVerify Holdings, Inc. (NYSE:DV) and shared Next Century Growth Small Cap 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.
