Renaissance Investment Management, an investment management company, released its Q4 2024 “Small Cap Growth Strategy” investor letter. A copy of the letter can be downloaded here. The Russell 2000 Growth Index generated a return of 1.7% in the fourth quarter, bringing the yearly returns to 15.2%. The portfolio generated positive returns in the fourth quarter and outperformed the Index. The outperformance was driven by stock selection in Information Technology and underweight position and stock selection in Health Care, while stock selection in Communication Services and Consumer Discretionary detracted. For more information on the fund’s best picks in 2024, please check its top five holdings.
In its fourth quarter 2024 investor letter, Renaissance Investment Management Small Cap Growth Strategy emphasized stocks such as Deckers Outdoor Corporation (NYSE:DECK). Deckers Outdoor Corporation (NYSE:DECK) is a footwear, apparel, and accessories company for everyday casual lifestyle and high-performance activities. The one-month return of Deckers Outdoor Corporation (NYSE:DECK) was -16.71%, and its shares lost 24.49% of their value over the last 52 weeks. On April 1, 2025, Deckers Outdoor Corporation (NYSE:DECK) stock closed at $113.35 per share with a market capitalization of $17.204 billion.
Renaissance Investment Management Small Cap Growth Strategy stated the following regarding Deckers Outdoor Corporation (NYSE:DECK) in its Q4 2024 investor letter:
“We exited our position in Deckers Outdoor Corporation (NYSE:DECK), the manufacturer and distributor of the Ugg and HOKA brands, as the company’s market cap exceeded the upper limit allowed in our Small Cap Growth portfolio. Deckers had been a holding in our portfolio since late 2019.”
A customer browsing a retail store, finding the perfect footwear for their casual outfits.
Deckers Outdoor Corporation (NYSE:DECK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held Deckers Outdoor Corporation (NYSE:DECK) at the end of the fourth quarter compared to 61 in the third quarter. In the third quarter of fiscal 2025, Deckers Outdoor Corporation’s (NYSE:DECK) revenue grew 17% year-over-year to $1.8 billion. While we acknowledge the potential of Deckers Outdoor Corporation (NYSE:DECK) 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.
We covered Deckers Outdoor Corporation (NYSE:DECK) in another article, where we shared the list of most oversold large cap stocks to invest in. In addition, please check out our hedge fund investor letters Q4 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.