Wasatch Global Investors, an asset management company, published its “Wasatch Micro Cap Value Strategy” investor letter for the first quarter of 2024. A copy of the letter can be downloaded here. During the first quarter, the strategy outperformed the benchmark Russell Microcap index, which rose 4.68%. Most of the strategy’s portfolio holdings met or beat earnings and revenue expectations in the quarter. Investor confidence gradually improved as the quarter progressed. Plus, you can check out the fund’s top 5 holdings to see their top picks in 2024.
Wasatch Micro Cap Value Strategy highlighted stocks like Luna Innovations Incorporated (NASDAQ:LUNA), in its Q1 2024 investor letter. Luna Innovations Incorporated (NASDAQ:LUNA) is an advanced optical technology company. Luna Innovations Incorporated (NASDAQ:LUNA)’s monthly performance was 30.37% and its shares lost 64.30% of its value in the last 52 weeks. On June 7, 2024, Luna Innovations Incorporated (NASDAQ:LUNA) stock closed at $3.5200 per share with a market capitalization of $122.133 million.
Wasatch Micro Cap Value Strategy stated the following regarding Luna Innovations Incorporated (NASDAQ:LUNA) in its Q1 2024 investor letter:
“Luna Innovations Incorporated (NASDAQ:LUNA) was the biggest drag on the strategy’s performance during the first quarter. The company offers optoelectronics and fiber optic test products for the telecommunications industry. Luna also distributes fiber optic sensors for the aerospace and automotive industries. The stock fell due to an accounting error related to the timing of revenue recognition. We believe the error was related to differences between U.S. and international accounting standards. These differences became increasingly important as Luna transitioned from a primarily American company to a more global company. The accounting error appeared isolated and did not affect the company’s cash flows. Additionally, Luna recently replaced its CFO. “As a result, we purchased additional shares due to share price weakness.”
A technician in a factory environment assembling components for the company’s optical backscatter reflectometers.
Luna Innovations Incorporated (NASDAQ:LUNA) isn’t on our list of the 31 most popular stocks among hedge funds. According to our database, 7 hedge fund portfolios held Luna Innovations Incorporated (NASDAQ:LUNA) at the end of the first quarter, up from 4 in the previous quarter. While we recognize the potential of Luna Innovations Incorporated (NASDAQ:LUNA) as an investment, our conviction lies in the belief that AI stocks hold more promise for generating higher returns and doing so in a shorter period of time. If you’re looking for an AI stock that’s as promising as NVIDIA but trades at less than 5x earnings, check out our report on cheapest AI stocks.
In another article, we discuss Luna Innovations Incorporated (NASDAQ:LUNA) and share Liberty Park Capital Management’s views on the company in Q3 2023. Also, check out our Hedge Fund Investor Letters Q1 2024 page for more letters to hedge fund investors and other leading investors.
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Disclosure: None. This article was originally published on Insider Monkey.
