Long Cast Advisers, an investment management firm, released its first quarter 2024 investor letter. A copy of the letter can be downloaded here. Long Cast Advisers follows fundamental analysis to evaluate the companies and invest in small companies barely included in any indexes. In the first quarter, the cumulative net returns of the fund improved by 9%. The fund returned a cumulative 188% net of fees, or 13% CAGR since inception in November 2015 through quarter end 1Q24. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2024.
Long Cast Advisers featured stocks like CoreCard Corporation (NYSE:CCRD) in the first quarter 2024 investor letter. Headquartered in Norcross, Georgia, CoreCard Corporation (NYSE:CCRD) provides technology solutions and processing services to the financial technology and services industry. On May 17, 2024, CoreCard Corporation (NYSE:CCRD) stock closed at $13.97 per share. One-month return of CoreCard Corporation (NYSE:CCRD) was 14.58%, and its shares lost 45.96% of their value over the last 52 weeks. CoreCard Corporation (NYSE:CCRD) has a market capitalization of $113.679 million.
Long Cast Advisers stated the following regarding CoreCard Corporation (NYSE:CCRD) in its first quarter 2024 investor letter:
“The largest detractors in the quarter were CoreCard Corporation (NYSE:CCRD), RELL and ENVX. Same as last quarter, our top five holdings at quarter end were MTRX, CCRD, QRHC, PESI and RSSS, and same as last quarter, our concentrated ownership of these companies means price changes in these stocks will have an overweight impact on our overall portfolio
I continue to add to CCRD, whose stock may remain pressured for some time due to the cloud of uncertainty around the Apple / Goldman “situation” and the likelihood that it will be “kicked out” of various indices as its market cap has fallen below $100M. Even as near-term financials are pressured by the repriced Goldman contract, I continue to see value in this company, which processes the most successful credit card launch in history. I believe we are at or near the trough in earnings and should see growth once the repriced Goldman contract laps in 2H24.
Furthermore, at ~$11, it is trading 3x non-Goldman revenues, not a terrible price for a small software company with organic growth ahead. Viewed through this lens, you get for free the ~$25M in annual contracted revenues from Goldman through ’25 and ’26 plus an option that Apple doesn’t switch processors even if it switches banks. Importantly, at some point this will be resolved and the market seems to have already priced in the worst-case outcome (cogent that it can always get worse).”
A financial specialist working on a digital platform managing accounts receivable & loan transactions.
CoreCard Corporation (NYSE:CCRD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held CoreCard Corporation (NYSE:CCRD) at the end of the fourth quarter which was 6 in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
In another article, we discussed CoreCard Corporation (NYSE:CCRD) and shared Weitz Investment Management Partners III Opportunity Fund’s views on the company in the previous quarter. Additionally, because of confidence in the company, Long Cast Advisers increased its position in CoreCard Corporation (NYSE:CCRD) in the previous quarter.
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Disclosure: None. This article is originally published at Insider Monkey.
