Next Century Growth Investors, LLC, an investment Management Company, released its “Small Cap Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. The market continued its rally in the first quarter of 2024; it paused in January but resumed its upward trajectory in February and March. In the quarter the small-cap strategy generated gains from most sectors, except technology where two tech stocks contributed significantly to the index performance. Against this backdrop, the strategy returned 9.35% (net of fees) in the quarter, compared to a 7.58% return for the Russell 2000 Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Next Century Growth Small Cap Strategy highlighted stocks like CyberArk Software Ltd. (NASDAQ:CYBR), in the first quarter 2024 investor letter. Incorporated in 1996, CyberArk Software Ltd. (NASDAQ:CYBR) develops and sells software-based identity security solutions and services. The one-month return of CyberArk Software Ltd. (NASDAQ:CYBR) was 17.61%, and its shares gained 74.30% of their value over the last 52 weeks. On July 1, 2024, CyberArk Software Ltd. (NASDAQ:CYBR) stock closed at $269.67 per share with a market capitalization of $11.635 billion.
Next Century Growth Small Cap Strategy stated the following regarding CyberArk Software Ltd. (NASDAQ:CYBR) in its first quarter 2024 investor letter:
“CyberArk Software Ltd. (NASDAQ:CYBR) is a leading identity security platform which helps companies protect against cybersecurity attacks. CYBR specializes in privileged access management (PAM) and has a full suite of products for identity security. As cyber attack sophistication increases, companies of all sizes need to upgrade from legacy solutions such as SSO (single sign on) and MFA (multi-factor authentication), which is leading to a strong demand environment for CYBR’s solutions. Given this end market backdrop, the company is growing revenue >20% and is delivering solid margin expansion.”
A data center with a repetetive design of computer servers, showing the companies’ efficient and secure IT infrastructure.
CyberArk Software Ltd. (NASDAQ:CYBR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held CyberArk Software Ltd. (NASDAQ:CYBR) at the end of the first quarter which was 50 in the previous quarter. While we acknowledge the potential of CyberArk Software Ltd. (NASDAQ:CYBR) 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 discussed CyberArk Software Ltd. (NASDAQ:CYBR) in another article and shared TimesSquare Capital U.S. Mid Cap Growth Strategy’s views on the company. Baron Discovery Fund gained from the strong performance of CyberArk Software Ltd. (NASDAQ:CYBR) in the first quarter 2024. In addition, please check out our hedge fund investor letters Q1 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.
