Brown Capital Management, an investment management company, released its “The Brown Capital Management Mid Company Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The Mid Company Fund (Institutional shares) returned -7.85 % in the quarter significantly underperforming -3.21% return for the Russell Midcap Growth Index. The strategy focuses on EGCs with strong revenue growth, competitive advantages, and differentiated products that save time, and money or deliver significant value to consumers. In addition, check the fund’s top five holdings to know its best picks in 2024.
Brown Capital Management Mid Company Fund highlighted stocks like Natera, Inc. (NASDAQ:NTRA), in the second quarter 2024 investor letter. Natera, Inc. (NASDAQ:NTRA) develops and commercializes molecular testing services. The one-month return of Natera, Inc. (NASDAQ:NTRA) was 0.06%, and its shares gained 111.51% of their value over the last 52 weeks. On September 5, 2024, Natera, Inc. (NASDAQ:NTRA) stock closed at $117.50 per share with a market capitalization of $14.179 billion.
Brown Capital Management Mid Company Fund stated the following regarding Natera, Inc. (NASDAQ:NTRA) in its Q2 2024 investor letter:
“Natera, Inc. (NASDAQ:NTRA) is a diagnostic-testing company that uses advanced technology to detect small amounts of DNA in a simple blood test. The company offers everything from prenatal tests for common genetic disorders to cancer-recurrence tests to transplant-organ-rejection tests. Natera’s products save time, lives, money and headaches by apprising expecting parents, cancer patients, and transplant patients earlier and easier. The company invests 25% of its revenue in R&D and is often first to market with the best clinical validation. This allows Natera to establish strong mindshare among the medical community early on, making it difficult for others to compete. While most of the company’s revenue comes from its prenatal tests, cancer-recurrence testing is the future of the company with a $15 billion to $20 billion market opportunity. Natera is unprofitable but we see a path to profitability in the coming years as the business scales and it dramatically improves its reimbursement cadence, which is in process. Based on the company’s large markets, strong innovation, defensible positions and impressive clinical data, Natera has a long runway for topline growth that should average 20% over the next five years.”
A doctor in a medical laboratory wearing a protective suit and a face mask, running a molecular diagnostic test.
Natera, Inc. (NASDAQ:NTRA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held Natera, Inc. (NASDAQ:NTRA) at the end of the second quarter which was 58 in the previous quarter. Natera, Inc.’s (NASDAQ:NTRA) second quarter revenues were up 12% from Q1 2024 and up 58% from Q2 2023. While we acknowledge the potential of Natera, Inc. (NASDAQ:NTRA) 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 Natera, Inc. (NASDAQ:NTRA) and shared Alger Weatherbie Specialized Growth Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
