Polen Capital, an investment management company, released its “Polen US SMID Company Growth Strategy” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. SMID cap stocks initially rose by more than 10% following November’s U.S. Presidential election, in another volatile quarter. However, they relinquished nearly all of those gains in December, as the U.S. Federal Reserve signaled that interest rate cuts would occur more slowly than anticipated, with reductions expected to start in 2025. Against this backdrop, the fund returned 3.0% gross, and 2.7% net of fees compared to the Russell 2500 Growth Index return of 2.4%. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Polen US SMID Company Growth Strategy highlighted stocks like Rambus Inc. (NASDAQ:RMBS), in the fourth 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 7.45%, and its shares lost 9.87% of their value over the last 52 weeks. On January 31, 2024, Rambus Inc. (NASDAQ:RMBS) stock closed at $61.62 per share with a market capitalization of $6.57 billion.
Polen US SMID Company Growth Strategy stated the following regarding Rambus Inc. (NASDAQ:RMBS) in its Q4 2024 investor letter:
“Rambus Inc. (NASDAQ:RMBS) plays a foundational role in fueling innovation in the data center and server environments, serving large memory OEMs (Original Equipment Manufacturers) and hyperscalers. With its fabless model, Rambus generates robust free cash flow while maintaining a steady R&D reinvestment to sustain its industry-leading memory interface chips and silicon IP solutions. We estimate Rambus is well-positioned to compound earnings and free cash flow per share at a high-teens rate through the cycle.”
A close-up of a cutting-edge semiconductor product being assembled by a technician.
Rambus Inc. (NASDAQ:RMBS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Rambus Inc. (NASDAQ:RMBS) at the end of the third quarter which was 21 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 Invesco Small Cap Value Fund’s views on the company in the previous quarter. 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.