Kingdom Capital Advisors, a private investment firm, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. Kingdom Capital Advisors is in its third year of operation as of the end of 2024. Since the firm’s inception, small cap stocks, as determined by the Russell 2000 TR, have experienced a cumulative return of roughly 7%, while KCA has experienced an 89% return. The strategy returned 2.07% (net of fees) in the fourth quarter compared to 0.33%, 2.41%, and 4.93% returns for the Russell 2000 TR, S&P 500 Index TR, and the NASDAQ 100 TR, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Kingdom Capital Advisors emphasized stocks such as TSS, Inc. (NASDAQ:TSSI). TSS, Inc. (NASDAQ:TSSI) is a US-based integration technology services provider. The one-month return TSS, Inc. (NASDAQ:TSSI) was -23.74%, and its shares gained 1,703.85% of their value over the last 52 weeks. On March 21, 2025, TSS, Inc. (NASDAQ:TSSI) stock closed at $9.38 per share with a market capitalization of $210.794 million.
Kingdom Capital Advisors stated the following regarding TSS, Inc. (NASDAQ:TSSI) in its Q4 2024 investor letter:
“Lastly, we (finally?) became AI investors in Q4. TSS, Inc. (NASDAQ:TSSI) was added to the portfolio, having already returned over 1000% in FY24 on the strength of Dell’s demand for new server racks. Mike was fortunate enough to meet with the CEO in Chicago during the summer and came away extremely impressed with the company’s plan to expand their operations in the face of significant data center demand. Their involvement with xAI certainly seems like a tailwind for 2025. While we do not usually find ourselves wanting to pay 30x run-rate earnings, a company that grew revenue almost 700% in the most recent quarter can catch your eye.”
TSS, Inc. (NASDAQ:TSSI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 3 hedge fund portfolios held TSS, Inc. (NASDAQ:TSSI) at the end of the fourth quarter which was 0 in the previous quarter. While we acknowledge the potential of TSS, Inc. (NASDAQ:TSSI) 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 TSS, Inc. (NASDAQ:TSSI) and shared a complete list of all AI companies under $2 billion market cap. 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.