The London Company, an investment management company, released “The London Company SMID Cap Strategy” second quarter 2024 investor letter. A copy of the same can be downloaded here. US markets posted mixed results in Q2. The portfolio fell 5.7% (5.9%, net) compared to a 4.3% decrease for the Russell 2500 Index. Both stock selection and sector exposure led the portfolio to underperform in the quarter. For more information on the fund’s top picks in 2024, please check its top five holdings.
The London Company SMID Cap Strategy highlighted stocks like Qualys, Inc. (NASDAQ:QLYS) in the second quarter 2024 investor letter. Qualys, Inc. (NASDAQ:QLYS) provides cloud-based information technology (IT), security, and compliance solutions. The one-month return of Qualys, Inc. (NASDAQ:QLYS) was -11.77%, and its shares lost 16.58% of their value over the last 52 weeks. On August 9, 2024, Qualys, Inc. (NASDAQ:QLYS) stock closed at $125.93 per share with a market capitalization of $4.636 billion.
The London Company SMID Cap Strategy stated the following regarding Qualys, Inc. (NASDAQ:QLYS) in its Q2 2024 investor letter:
“Initiated: Qualys, Inc. (NASDAQ:QLYS) – QLYS provides cybersecurity and compliance solutions, which enable its clients to identify, prioritize, and remediate risks to information technology infrastructures. QLYS also offers solutions through a software-as-a-service model, primarily with renewable annual subscriptions. QLYS should continue to benefit from the long-term secular tailwinds that drive sustainable growth in cybersecurity. QLYS’s products are critical but also low-cost relative to a company’s overall security budget, helping ensure high retention rates and recession resistance. We believe QLYS is among the best managed in the industry. Many past decisions have positioned QLYS ahead of peers in terms of product quality, structurally higher margins, and competitive moat. QLYS generates high operating margins with growing cash flow generation and has a very strong balance sheet. QLYS is also owned in our Small Cap portfolio.”
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Qualys, Inc. (NASDAQ:QLYS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Qualys, Inc. (NASDAQ:QLYS) at the end of the first quarter which was 31 in the previous quarter. The second quarter revenues of Qualys, Inc. (NASDAQ:QLYS) grew 8% to $148.7 million. While we acknowledge the potential of Qualys, Inc. (NASDAQ:QLYS) 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 Qualys, Inc. (NASDAQ:QLYS) and shared The London Company Small Cap Strategy’s 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.
