Next Century Growth Investors, LLC, an investment Management Company, released its “Micro-Cap Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. Equity markets were mixed in the second quarter, large-cap stocks continue to outperform small-cap stocks. The strategy returned (0.95)% (net of fees) compared to a (5.56)% return for the Russell Microcap Growth Index. The Strategy outperformed in health care and technology and underperformed in consumer discretionary during the quarter. The firm believes that the economy’s trajectory and the outlook for earnings forecasts will determine the future course of the market. In addition, please check the fund’s top five holdings to know its best picks in 2024.
NCG Micro-Cap Strategy highlighted stocks like Bowhead Specialty Holdings Inc. (NYSE:BOW), in the second quarter 2024 investor letter. Bowhead Specialty Holdings Inc. (NYSE:BOW) is a specialty property and casualty insurance products provider. The one-month return of Bowhead Specialty Holdings Inc. (NYSE:BOW) was 15.33%, and its shares gained 22.74% of their value over the last three months. On September 6, 2024, Bowhead Specialty Holdings Inc. (NYSE:BOW) stock closed at $31.14 per share with a market capitalization of $1.017 billion.
NCG Micro-Cap Strategy stated the following regarding Bowhead Specialty Holdings Inc. (NYSE:BOW) in its Q2 2024 investor letter:
“Bowhead Specialty Holdings Inc. (NYSE:BOW) is a specialty P&C insurance carrier with a focus on the E&S market, a part of the market that has historically generated higher growth and higher returns than the admitted market. BOW is lead by an experienced management team with a proven and successful track record in the insurance industry, and we believe the company can generate strong 20% business growth and high returns as they execute on the business strategy.”
An insurance agent at their desk consulting a customer about property & casualty insurance.
Bowhead Specialty Holdings Inc. (NYSE:BOW) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Bowhead Specialty Holdings Inc. (NYSE:BOW) at the end of the second quarter which was 0 in the previous quarter. While we acknowledge the potential of Bowhead Specialty Holdings Inc. (NYSE:BOW) 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 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.