Artko Capital, an investment management company, recently released its fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, an average partnership interest in the fund increased by 6.9% net of fees. However, investments in comparable indexes like Russell 2000, Russell Microcap, and the S&P 500 were up 14.0%, 16.1%, and 11.7% in the fourth quarter. For the full year, the fund was up 1.6% net of fees while comparable market indexes were up 16.9%, 9.3%, and 26.3% respectively. For more information on the fund’s top picks in 2023, please check its top five holdings.
Artko Capital featured stocks like Research Solutions, Inc. (NASDAQ:RSSS) in the fourth quarter 2023 investor letter. Headquartered in Henderson, Nevada, Research Solutions, Inc. (NASDAQ:RSSS) offers a cloud-based software-as-a-service research platform. On March 4, 2024, Research Solutions, Inc. (NASDAQ:RSSS) stock closed at $3.4300 per share. One-month return of Research Solutions, Inc. (NASDAQ:RSSS) was 27.04%, and its shares gained 57.14% of their value over the last 52 weeks. Research Solutions, Inc. (NASDAQ:RSSS) has a market capitalization of $111.888 million.
Artko Capital stated the following regarding Research Solutions, Inc. (NASDAQ:RSSS) in its fourth quarter 2023 investor letter:
“Our investment in Research Solutions, Inc. (NASDAQ:RSSS), originally at sub $1.00 in 2017, though with substantial additions over the years our cost basis has drifted higher, was down 22.0% in 2022, up 41.0% in 2023 and up over 25.0% so far this year. This was an interesting and a bit tumultuous year for the company and the stock but the end outcome, fundamental growth and the future outlook all look excellent from this point. The provider of information services for the scientific industry, not unlike Bloomberg is for finance and Lexus Nexus is for law, grew its 2023 revenues 15.0%, up from 8.0% last year, and what we believe to be the more important metric, its gross profit, over 21.0%.
As a reminder, Research Solutions has a legacy Transactions business, the sale of scientific articles to over 1,360 customers, up 13.0% from last year, including 70.0% of the top 25 pharma companies. Up until 2022, this business has been a steady $26mm to $27mm revenue run rate segment for as long as we’ve been shareholders, and with its 23%-24% gross margins has been a consistent generator of $6.0 to $6.5mm in gross profit. However, with a minor acquisition of a European customer list in 2022, as well as expansion of transaction demand creating Platforms segment, the 2023 segment revenues were over $30mm with close to $7.7mm in Gross Profit, 13.0% and 19.0% 2023 growth, respectively…” (Click here to read the full text)
A closeup of a software engineer showing the complexity of software development.
Research Solutions, Inc. (NASDAQ:RSSS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Research Solutions, Inc. (NASDAQ:RSSS) was held by 5 hedge fund portfolios, up from 4 in the previous quarter, according to our database.
We discussed Research Solutions, Inc. (NASDAQ:RSSS) in another article and shared Long Cast Advisers’ views on the company. In addition, please check out our hedge fund investor letters Q4 2023 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.
