Laughing Water Capital, an investment management company, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, Class A interests in Laughing Water Capital returned about 18.6% bringing year-to-date returns to approximately 39.5%. The SP500TR and R2000 returned 2.4% and 0.3% in the quarter and 25% and 11.5% year-to-date, respectively. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Laughing Water Capital highlighted stocks like Thryv Holdings, Inc. (NASDAQ:THRY) in the fourth quarter 2024 investor letter. Thryv Holdings, Inc. (NASDAQ:THRY) is a digital marketing solutions and cloud-based tools provider to businesses. One-month return of Thryv Holdings, Inc. (NASDAQ:THRY) was 14.63%, and its shares lost 20.65% of their value over the last 52 weeks. On January 21, 2025, Thryv Holdings, Inc. (NASDAQ:THRY) stock closed at $16.22 per share with a market capitalization of $681.97 million.
Laughing Water Capital stated the following regarding Thryv Holdings, Inc. (NASDAQ:THRY) in its Q4 2024 investor letter:
“Thryv Holdings, Inc. (NASDAQ:THRY) – Thryv, our small and medium business software company, continues to execute well, and the market continues to not care. 2024 highlights include refinancing their debt on favorable terms, growing customer count 46% YOY through Q3, reaching rule of 40, bringing net dollar retention above 100%, and making an acquisition that will expand their go-to-market channels and add automation tools. To be fair, the acquisition was financed by an equity raise that was very poorly done, but the strategic logic behind the acquisition was explained at a recent investor day, and with time I think the market will come to appreciate it.
Also at this investor day, management compared Thryv to similar businesses and demonstrated that Thryv is growing faster with higher rule of 40 than HubSpot (HUBS) and Service Titan (TTAN). vi It is true that HUBS has scaled further than THRY, but HUBS trades at ~12x ’25 consensus revenue, and THRY trades at ~2x my estimate of ’25 SAAS revenue, and THRY is inflecting right now. Service Titan just recently IPO’d at 10x revenues and quickly traded up nearly 50%. These comparisons are admittedly not apples to apples, but they are not apples to horse-apples either. As Thryv continues to execute the market will take notice eventually, and shares should re-rate significantly higher.”
A businessperson using a mobile device to illustrate the use of Thryv’s end-to-end customer experience platform.
Thryv Holdings, Inc. (NASDAQ:THRY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Thryv Holdings, Inc. (NASDAQ:THRY) at the end of the third quarter which was 18 in the previous quarter. While we acknowledge the potential of Thryv Holdings, Inc. (NASDAQ:THRY) 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 previously discussed Thryv Holdings, Inc. (NASDAQ:THRY) in another article, where we shared AI news investors should not miss. In addition, please check out our hedge fund investor letters Q4 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.