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 Mama’s Creations, Inc. (NASDAQ:MAMA), in the second quarter 2024 investor letter. Mama’s Creations, Inc. (NASDAQ:MAMA) manufactures and markets fresh deli-prepared foods. The one-month return of Mama’s Creations, Inc. (NASDAQ:MAMA) was 2.96%, and its shares gained 86.05% of their value over the last 52 weeks. On September 9, 2024, Mama’s Creations, Inc. (NASDAQ:MAMA) stock closed at $8.00 per share with a market capitalization of $298.105 million.
Wasatch Micro-Cap Value Strategy stated the following regarding Mama’s Creations, Inc. (NASDAQ:MAMA) in its Q2 2024 investor letter:
“Another significant contributor was Mama’s Creations, Inc. (NASDAQ:MAMA). We’re impressed with the management team and the business strategy of this specialty maker of pre-prepared and frozen meals, salads, soups and other foods. Mama’s products are sold to customers in supermarkets and by mass-distribution retailers. The stock was up during the quarter based on a strong earnings report. Nevertheless, with a market capitalization of only about $240 million, the company is still relatively unknown to investors. Mama’s customers appreciate the simple ingredients and the taste of Mama’s products, which tend to be similar to homemade foods. With more distribution channels on the horizon, we think the company has significant headroom to grow. Additionally, for budget-minded households, we consider Mama’s an attractive alternative to dining out.”
Mama’s Creations, Inc. (NASDAQ:MAMA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held Mama’s Creations, Inc. (NASDAQ:MAMA) at the end of the second quarter which was 15 in the previous quarter. Mama’s Creations, Inc. (NASDAQ:MAMA) reported $29.8 million in revenues in the first quarter of fiscal 2025 increased 29% from prior year’s quarter. While we acknowledge the potential of Mama’s Creations, Inc. (NASDAQ:MAMA) 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 Mama’s Creations, Inc. (NASDAQ:MAMA) and shared NCG Micro-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.
