Wasatch Global Investors, an asset management company, released its “Wasatch Micro Cap Value Strategy” second-quarter 2024 investor letter. A copy of the same can be downloaded here. During the second quarter, the strategy fell but significantly outperformed the benchmark Russell Microcap Index which declined -5.27%. The firm did not observe any major changes in its long-term investment position during the quarter. However, it acknowledges that the majority of equities fell as investors’ concerns about the possibility of a recession, higher-for-longer inflation, and interest rates. A small group of stocks that are thought to be doing well because of the artificial intelligence (AI) boom kept going up at the same time. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Wasatch Micro-Cap Value Strategy highlighted stocks like Weave Communications, Inc. (NYSE:WEAV), in the second quarter 2024 investor letter. Weave Communications, Inc. (NYSE:WEAV) offers a customer experience and payments software platform that enable small and medium-sized healthcare businesses to maximize the value of their patient interactions. The one-month return of Weave Communications, Inc. (NYSE:WEAV) was 0.57%, and its shares gained 19.57% of their value over the last 52 weeks. On September 9, 2024, Weave Communications, Inc. (NYSE:WEAV) stock closed at $10.57 per share with a market capitalization of $759.065 million.
Wasatch Micro-Cap Value Strategy stated the following regarding Weave Communications, Inc. (NYSE:WEAV) in its Q2 2024 investor letter:
“Weave Communications, Inc. (NYSE:WEAV) was also a detractor. The company provides small and medium-sized businesses with a customer communications and engagement software platform. Weave also specializes in software for dental offices and niche medical practices—and facilitates patient communications. In 2023, the stock rose as investor sentiment improved because the company trimmed expenses faster than originally promised and continued to deliver strong revenue growth. In 2024, however, the stock has been down due to earnings falling short of expectations. While we acknowledge this disappointment, we note that revenues have continued to be strong. Moreover, Weave hasn’t been burning cash. Instead, the company has been running just above breakeven as it seeks to maximize topline growth. We think this approach makes sense because once a customer is acquired, profits per customer tend to increase over time even without additional marketing expenditures.”
A close-up shot of an engineer configuring an email marketing system.
Weave Communications, Inc. (NYSE:WEAV) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held Weave Communications, Inc. (NYSE:WEAV) at the end of the second quarter which was 20 in the previous quarter. Weave Communications, Inc.’s (NYSE:WEAV) revenue for Q2 was $50.6 million, representing 21.4% year-over-year growth. While we acknowledge the potential of Weave Communications, Inc. (NYSE:WEAV) 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 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.
