Brown Capital Management, an investment management company, released its “The Brown Capital Management Small Company Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The Small Company Fund returned -6.57%, underperforming the Russell 2000 Growth index’s 2.92% decline. Fundamental and macroeconomic factors drove the underperformance of the fund in the quarter. The fund aims to identify and invest in Exceptional Growth Companies (EGCs) that focus on products and services their customers cannot live without. In addition, check the fund’s top five holdings to know its best picks in 2024.
Brown Capital Management Small Company Fund highlighted stocks like Cryoport, Inc. (NASDAQ:CYRX) in the second quarter 2024 investor letter. Cryoport, Inc. (NASDAQ:CYRX) is a temperature-controlled supply chain solutions provider. The one-month return of Cryoport, Inc. (NASDAQ:CYRX) was 4.34%, and its shares lost 34.80% of their value over the last 52 weeks. On September 6, 2024, Cryoport, Inc. (NASDAQ:CYRX) stock closed at $8.17 per share with a market capitalization of $403.698 million.
Brown Capital Management Small Company Fund stated the following regarding Cryoport, Inc. (NASDAQ:CYRX) in its Q2 2024 investor letter:
“Cryoport, Inc. (NASDAQ:CYRX) is a cold-chain logistics company focused primarily on the rapidly growing cell- and gene-therapy industry. Cryoport uses proprietary packaging, shippers, informatics technology, and continuous tracking and monitoring to provide temperature-controlled transport and logistics to pharmaceutical companies and biotechs. Tissue samples or pharmaceutical treatments can be maintained during transport at cryogenic temperatures (-94 degrees Celsius) for 10 days or more. Cryoport also sells products including cryogenic and other types of freezers and shippers to pharmaceutical companies, research laboratories, governments and academic institutions.
During the quarter, Cryoport reported first quarter results with revenue decreasing 13% from the year-earlier period. A few factors that hurt the company in recent quarters persisted into this quarter. On the logistics side of the business, the broader cell- and gene-therapy industry is experiencing a lack of manufacturing capacity for drug treatments. Drug treatment volumes have been ramping slower than expected, which hinders near-term shipment volumes for Cryoport. On the product side of the business, interest-rate-driven pullbacks in capital spending from customers led to revenue declines in the quarter. Cryoport maintains a leading position in supporting the cell- and gene-therapy programs for pharmaceutical companies including Novartis, Kite/Gilead and others, which should bode well for future growth. However, the recent operational performance, particularly in the products segment of the business, has been disappointing. We continue to monitor the company’s opportunities and challenges in this area.”
A busy freight train Traversing a vast expanse of land, carrying the company’s cargo.
Cryoport, Inc. (NASDAQ:CYRX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Cryoport, Inc. (NASDAQ:CYRX) at the end of the second quarter which was 10 in the previous quarter. While we acknowledge the potential of Cryoport, Inc. (NASDAQ:CYRX) 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 Cryoport, Inc. (NASDAQ:CYRX) and shared Conestoga Capital Advisors’ 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.
