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 Rapid7, Inc. (NASDAQ:RPD), in the second quarter 2024 investor letter. Rapid7, Inc. (NASDAQ:RPD) offers cybersecurity solutions under the Rapid7, Nexpose, and Metasploit brand names. The one-month return of Rapid7, Inc. (NASDAQ:RPD) was -4.85%, and its shares lost 29.60% of their value over the last 52 weeks. On September 9, 2024, Rapid7, Inc. (NASDAQ:RPD) stock closed at $34.70 per share with a market capitalization of $2.177 billion.
Wasatch Micro-Cap Value Strategy stated the following regarding Rapid7, Inc. (NASDAQ:RPD) in its Q2 2024 investor letter:
“As for our sells, we exited Rapid7, Inc. (NASDAQ:RPD), a cybersecurity company that provides real-time analytic services including vulnerability management and threat protection. We came to the conclusion that cybersecurity services will increasingly be bundled with other services and may no longer offer the competitive advantages and growth potential they once did.”
A computer engineer analyzing a server network for cyber security threats.
Rapid7, Inc. (NASDAQ:RPD) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Rapid7, Inc. (NASDAQ:RPD) at the end of the second quarter which was 32 in the previous quarter. While we acknowledge the potential of Rapid7, Inc. (NASDAQ:RPD) 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 Rapid7, Inc. (NASDAQ:RPD) and shared the list of best affordable tech stocks to buy according to analysts. 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.
