Renaissance Investment Management, an investment management company, released its Q4 2024 “Small Cap Growth Strategy” investor letter. A copy of the letter can be downloaded here. The Russell 2000 Growth Index generated a return of 1.7% in the fourth quarter, bringing the yearly returns to 15.2%. The portfolio generated positive returns in the fourth quarter and outperformed the Index. The outperformance was driven by stock selection in Information Technology and underweight position and stock selection in Health Care, while stock selection in Communication Services and Consumer Discretionary detracted. For more information on the fund’s best picks in 2024, please check its top five holdings.
In its fourth quarter 2024 investor letter, Renaissance Investment Management Small Cap Growth Strategy emphasized stocks such as Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX). Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) is a commercial-stage biopharmaceutical company. The one-month return Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) was 9.27%, and its shares gained 54.42% of their value over the last 52 weeks. On April 1, 2025, Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) stock closed at $23.92 per share with a market capitalization of $2.905 billion.
Renaissance Investment Management Small Cap Growth Strategy stated the following regarding Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) in its Q4 2024 investor letter:
“Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX), a biopharma company focused on neurological and neuromuscular disorders, was a new position added during the quarter. The company has three commercial drugs in the rare orphan segment that focus on the central nervous system. The company launched a new drug in 2024 and has seen sales ramp above expectations. Catalyst is also looking to acquire additional drugs in rare disease classifications to enhance company growth. We believe that the company’s strategy to target the orphan drug market could create long-term growth opportunities with high barriers to entry that should allow the company to drive steady growth going forward.”
A scientist in a laboratory researching a neurological disease.
Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) at the end of the fourth quarter compared to 32 in the third quarter. In the 2024, Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) reported $491.7 million in revenues, representing a 23.5% increase from 2023. While we acknowledge the potential of Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) 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 covered Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) in another article, where we shared the list of best gene therapy stocks to buy according to analysts. 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.