Brown Capital Management, an investment management company, released its “The Brown Capital Management Small Company Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The Small Company Fund returned 8.74%, underperforming the Russell 2000 Growth index’s 12.75% return. The fund returned 19.12% for the calendar year 2023 underperforming 18.66% return for the benchmark. In addition, check the fund’s top five holdings to know its best picks in 2023.
The Brown Capital Management Small Company Fund featured stocks like Xometry, Inc. (NASDAQ:XMTR) in the fourth quarter 2023 investor letter. Headquartered in North Bethesda, Maryland, Xometry, Inc. (NASDAQ:XMTR) is an online marketplace for manufacturing solutions. On March 6, 2024, Xometry, Inc. (NASDAQ:XMTR) stock closed at $17.71 per share. One-month return of Xometry, Inc. (NASDAQ:XMTR) was -46.61 %, and its shares lost 1.94% of their value over the last 52 weeks. Xometry, Inc. (NASDAQ:XMTR) has a market capitalization of $853.011 million.
The Brown Capital Management Small Company Fund stated the following regarding Xometry, Inc. (NASDAQ:XMTR) in its fourth quarter 2023 investor letter:
“Xometry, Inc. (NASDAQ:XMTR) operates an online manufacturing platform that allows customers to get quotes, place orders and receive custom-manufactured parts that meet their specifications. The platform is based on a network of more than 5,000 manufacturing partners across multiple countries that provide a broad range of manufacturing capabilities, including CNC (Computer Numerically Controlled) machining, injection molding, 3D printing and sheet-metal cutting. Xometry’s products save time and money by making procurement and manufacturing more efficient. Buyers quickly receive finished parts, and manufacturing partners reduce excess capacity by sourcing additional jobs through the Xometry network.
During the quarter, Xometry reported third quarter results that were roughly in line with expectations, and outlined a number of factors that should contribute to future growth and profitability. The total number of active customers on the platform increased by 43% over the previous year, and the number of large customers—those spending more than $50,000 annually with Xometry—increased by 26%. Product pricing has stabilized recently, after declining in previous quarters due to customers choosing longer lead time options for receiving their products, which lowered prices and reduced average order sizes. Xometry’s gross margin on its core business increased during the quarter, and the company also discontinued a small, lower-margin business selling tools and supplies to its manufacturing partners. The company’s improved prospects for revenue and profitability likely drove its stock price increase during the quarter. Xometry remains a leader and innovator in its industry and is gaining market share from competitors. We believe the company is in the early stages of a growth trajectory that should last for many years.”
A machinist operating a CNC machine in a well-lit facility, scrutinizing the quality of a part.
Xometry, Inc. (NASDAQ:XMTR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Xometry, Inc. (NASDAQ:XMTR) was held by 12 hedge fund portfolios, same as 12 in the previous quarter, according to our database.
We discussed Xometry, Inc. (NASDAQ:XMTR) in another article and shared Alger Small Cap Growth Fund’s views on the company. In addition, please check out our hedge fund investor letters Q4 2023 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.