Laughing Water Capital, an investment management company, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, Class A interests in Laughing Water Capital returned about 2.5% bringing year-to-date returns to 11.1%. The SP500TR and R2000 returned 4.3% and -3.3% in the second quarter and 15.3% and 1.7% year-to-date, respectively. The strength of the market is now concentrated in a small number of mega-cap stocks. The SP500’s “artificial intelligence”-related equities increased 14.7% during the second quarter, while the overall SP500 fell 1.2%. The firm does not own any of these stocks and focuses on the hidden corners of the market. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Laughing Water Capital highlighted stocks like Cantaloupe, Inc. (NASDAQ:CTLP), in the second quarter 2024 investor letter. Cantaloupe, Inc. (NASDAQ:CTLP) is a digital payments and software services company. The one-month return of Cantaloupe, Inc. (NASDAQ:CTLP) was 14.59%, and its shares gained 4.38% of their value over the last 52 weeks. On July 25, 2024, Cantaloupe, Inc. (NASDAQ:CTLP) stock closed at $7.62 per share with a market capitalization of $554.81 million.
Laughing Water Capital stated the following regarding Cantaloupe, Inc. (NASDAQ:CTLP) in its Q2 2024 investor letter:
“Cantaloupe, Inc. (NASDAQ:CTLP) – Cantaloupe is new to our portfolio for the second time, as we previously owned this company in 2020 and 2021. The original thesis was part special situation as the Company regained compliance with the SEC related to timely filing of financial statements and would thus be a beneficiary of forced buying by index funds, and part fundamental improvement under a new and much improved management team. In my view, both legs of that thesis have been playing out, but the market has thus far failed to reward Cantaloupe for the fundamental improvements they have made.
Cantaloupe, perhaps best known in the vending machine world, provides hardware, payments and software solutions to self-serve retail including micro-markets, laundry, arcade, auto air/vacuum, and others. Self-serve retail is reasonably recession resistant, and Cantaloupe’s products help customers increase revenue and cut costs. Payments and software revenue are recurring in nature, and historic churn has been close to zero…” (Click here to read the full text)
A woman at a self-service kiosk using a software service to manage logistics.
Cantaloupe, Inc. (NASDAQ:CTLP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Cantaloupe, Inc. (NASDAQ:CTLP) at the end of the first quarter which was 15 in the previous quarter. In the third fiscal quarter of 2024, Cantaloupe, Inc. (NASDAQ:CTLP) reported $67.9 million in revenues, an increase of 13% year over year. While we acknowledge the potential of Cantaloupe, Inc. (NASDAQ:CTLP) 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 Cantaloupe, Inc. (NASDAQ:CTLP) and shared Wasatch Micro Cap Growth—U.S. Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 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.