Wasatch Global Investors, an asset management company, released its “Wasatch Small Cap Growth Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. Small-cap equities experienced volatility in the third quarter but ultimately achieved solid gains. In July, they rose sharply due to optimism about a potential soft landing for the U.S. economy and anticipated interest-rate cuts. In September, the Federal Reserve lowered its benchmark interest rate for the first time since 2020. This environment led investors to shift their focus from mega-cap technology stocks to small-cap equities. Against this backdrop, the strategy gained 9.45%, outperforming the benchmark Russell 2000® Growth Index, which was up 8.41%. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Wasatch Small Cap Growth Strategy highlighted stocks like The Ensign Group, Inc. (NASDAQ:ENSG), in the third quarter 2024 investor letter. The Ensign Group, Inc. (NASDAQ:ENSG) is a healthcare facilities company that provides nursing, senior living, and rehabilitative services. The one-month return of The Ensign Group, Inc. (NASDAQ:ENSG) was -6.78%, and its shares gained 14.93% of their value over the last 52 weeks. On January 3, 2025, The Ensign Group, Inc. (NASDAQ:ENSG) stock closed at $132.50 per share with a market capitalization of $7.592 billion.
Wasatch Small Cap Growth Strategy stated the following regarding The Ensign Group, Inc. (NASDAQ:ENSG) in its Q3 2024 investor letter:
“Another large contributor was The Ensign Group, Inc. (NASDAQ:ENSG). Shares rose after the company reported second-quarter earnings and revenue growth that exceeded consensus estimates. The company has also announced a few acquisitions in recent months, which the market viewed favorably. Our views on Ensign remain unchanged. We believe that Ensign, a long-term Wasatch holding, is one of the best-run companies in the health-care facilities-management space. In our view, what helps set Ensign apart is that it separates facilities management from patient management, enabling it to improve financial results while also delivering favorable patient outcomes. The company has a long history of acquiring underperforming properties and making them successful.”
A medical professional in a lab coat, talking to an elderly patient in a hospital bed.
The Ensign Group, Inc. (NASDAQ:ENSG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held The Ensign Group, Inc. (NASDAQ:ENSG) at the end of the third quarter which was 22 in the previous quarter. While we acknowledge the potential of The Ensign Group, Inc. (NASDAQ:ENSG) 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 Q3 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.