Wasatch Global Investors, an asset management company, released its “Wasatch Micro Cap Value Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. During the first quarter, the strategy outperformed the benchmark Russell Microcap Index which rose 4.68%. Most of the portfolio holdings of the strategy met or exceeded earnings and revenue expectations in the quarter. Investor sentiments gradually improved as the quarter went on. 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 Landsea Homes Corporation (NASDAQ:LSEA), in the first quarter 2024 investor letter. Landsea Homes Corporation (NASDAQ:LSEA) designs, constructs, and markets suburban and urban single-family detached and attached homes. The one-month return of Landsea Homes Corporation (NASDAQ:LSEA) was -2.30%, and its shares gained 16.33% of their value over the last 52 weeks. On June 7, 2024, Landsea Homes Corporation (NASDAQ:LSEA) stock closed at $9.69 per share with a market capitalization of $352.26 million.
Wasatch Micro Cap Value Strategy stated the following regarding Landsea Homes Corporation (NASDAQ:LSEA) in its first quarter 2024 investor letter:
“Landsea Homes Corporation (NASDAQ:LSEA) designs and builds entry-level homes and broader communities across the United States. Prior to our taking a position in the company, we had wanted exposure to a traditional homebuilder but had found it difficult to find a suitable micro-cap investment. Because Landsea had been 100% owned by the Chinese before our investment, the company had been burdened by high-cost debt—which had also dragged down the stock price. Now that Chinese ownership has fallen below 50%, which lowers the perceived risks among lenders, Landsea has been able to refinance the debt on favorable terms. And the company recently made a strategic acquisition in Texas. We’re optimistic regarding Landsea because we’re impressed with the management team, the quality of the homes, the demand in the market segment and the headroom for growth.”
Aerial view of a suburban home under construction, displaying its modern architecture.
Landsea Homes Corporation (NASDAQ:LSEA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Landsea Homes Corporation (NASDAQ:LSEA) at the end of the first quarter which was 14 in the previous quarter. In the first quarter, Landsea Homes reported robust top-line growth of 22%. While we acknowledge the potential of Landsea Homes Corporation (NASDAQ:LSEA) 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 Q1 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
