Wasatch Global Investors, an asset management company, released its “Wasatch Micro-Cap Growth-U.S. Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. Micro-cap stocks saw a decline in the second quarter of this year following a robust start to the year due to a difficult macro environment and a narrowly focused market. Against this backdrop, the strategy fell but outperformed the Russell Microcap Growth Index benchmark, which fell -5.57%. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Wasatch Micro-Cap Growth-U.S. Strategy highlighted stocks like Boot Barn Holdings, Inc. (NYSE:BOOT) in the second quarter 2024 investor letter. Boot Barn Holdings, Inc. (NYSE:BOOT) is a lifestyle retail chain that offers western and work-related footwear, apparel, and accessories. The one-month return of Boot Barn Holdings, Inc. (NYSE:BOOT) was 5.86%, and its shares gained 67.04% of their value over the last 52 weeks. On September 11, 2024, Boot Barn Holdings, Inc. (NYSE:BOOT) stock closed at $148.23 per share with a market capitalization of $4.522 billion.
Wasatch Micro-Cap Growth-U.S. Strategy stated the following regarding Boot Barn Holdings, Inc. (NYSE:BOOT) in its Q2 2024 investor letter:
“Another meaningful contributor was Boot Barn Holdings, Inc. (NYSE:BOOT). The company sells Western and work-related clothing and accessories such as cowboy boots, hats and belts. Boot Barn is the only scaled national competitor in a fragmented industry and is partially insulated from online competition through its omnichannel sales strategy and the consumer preference for trying on items before purchasing. The company continues to open stores at a mid-teens rate and has proven its appeal to customers in all regions of the country. Investors had been concerned about elevated sales levels related to a pandemic-related benefit when consumers were spending more on goods rather than services. The reason the stock has performed so well is that store-level sales haven’t reverted to pre-Covid levels—which has resulted in structurally higher store-level profits with payback periods that are half of what they were. We continue to like Boot Barn because of its expansion opportunities, ability to self-fund new store development and same-store sales growth that should turn positive in the next few quarters.”
A farmer standing in a sun-drenched field wearing overalls and a rugged pair of western-style boots.
Boot Barn Holdings, Inc. (NYSE:BOOT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Boot Barn Holdings, Inc. (NYSE:BOOT) at the end of the second quarter which was 25 in the previous quarter. Boot Barn Holdings, Inc.’s (NYSE:BOOT) net sales for the fiscal fourth quarter of 2024 dropped 8.7% to $388 million, but net sales for the full year fiscal 2024 rose by almost 100% to nearly $1.7 billion. While we acknowledge the potential of Boot Barn Holdings, Inc. (NYSE:BOOT) 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 Boot Barn Holdings, Inc. (NYSE:BOOT) and shared SouthernSun 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.
