Columbia Acorn Fund, distributed by Columbia Management Investment Distributors, released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund returned 9.15% while the benchmark, the Russell 2500 Growth Index, returned 6.99%. A strong market rally occurred throughout the quarter, and the Columbia Acorn Fund beat its benchmark due to positive stock selection. With recoveries for smaller caps and several cyclical stocks, the third quarter witnessed a return to animal spirits following the previous quarter’s more risk-averse environment. In addition, you can check the fund’s top 5 holdings for its best picks for 2024.
Columbia Acorn Fund highlighted stocks like Rambus Inc. (NASDAQ:RMBS), in the third quarter 2024 investor letter. Incorporated in 1990, Rambus Inc. (NASDAQ:RMBS) is a semiconductor products provider. The one-month return of Rambus Inc. (NASDAQ:RMBS) was 23.80%, and its shares lost 10.91% of their value over the last 52 weeks. On November 8, 2024, Rambus Inc. (NASDAQ:RMBS) stock closed at $55.78 per share with a market capitalization of $5.945 billion.
Columbia Acorn Fund stated the following regarding Rambus Inc. (NASDAQ:RMBS) in its Q3 2024 investor letter:
“Rambus Inc. (NASDAQ:RMBS) lagged as the company disappointed investors with weak forward guidance due to lower product revenues for the semiconductors it makes. Spending on traditional servers has been lower, replaced by AI spending, which is having a negative impact on revenue growth. Also, amid increasing competition, the company has been experiencing some erosion in pricing. In the face of these challenges, we sold the stock.”
A close-up of a cutting-edge semiconductor product being assembled by a technician.
Rambus Inc. (NASDAQ:RMBS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Rambus Inc. (NASDAQ:RMBS) at the end of the second quarter which was 25 in the previous quarter. Rambus Inc.’s (NASDAQ:RMBS) third quarter revenue of $145.5 million was in line with expectations. While we acknowledge the potential of Rambus Inc. (NASDAQ:RMBS) 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 Rambus Inc. (NASDAQ:RMBS) and shared the list of stocks with biggest upside potential according to hedge funds. 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.