Meridian Funds, managed by ArrowMark Partners, released its “Meridian Small Cap Growth Fund” second quarter 2024 investor letter. A copy of the same can be downloaded here. Major index returns increased throughout the quarter due to strong profits from large-cap technology companies, especially those connected to artificial intelligence. But the market’s breadth revealed a different picture. The fund returned -3.54% (net) in the second quarter compared to the Russell 2000 Growth Index’s -2.92% return. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Meridian Small Cap Growth Fund highlighted stocks like PlayAGS, Inc. (NYSE:AGS), in the second quarter 2024 investor letter. PlayAGS, Inc. (NYSE:AGS) is a company that engages in the design and supply of gaming products and services. The one-month return of PlayAGS, Inc. (NYSE:AGS) was -0.35%, and its shares gained 63.06% of their value over the last 52 weeks. On September 20, 2024, PlayAGS, Inc. (NYSE:AGS) stock closed at $11.30 per share with a market capitalization of $454.691 million.
Meridian Small Cap Growth Fund stated the following regarding PlayAGS, Inc. (NYSE:AGS) in its Q2 2024 investor letter:
“PlayAGS, Inc. (NYSE:AGS) is a designer and supplier of slot machines and other gaming hardware for the gaming industry. Among the many things we like about this company are its seasoned management team, extensive gaming hardware design experience, and the recurring revenue generated through the gaming devices it sells to customers. The stock jumped on news that it would be acquired by private equity at approximately 40% above the prior 90-day average share price. We trimmed our position in PlayAGS during the quarter and will trade opportunistically as the transaction date comes into focus.”
A close up of a slot machine surrounded by anonymous people gambling.
PlayAGS, Inc. (NYSE:AGS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held PlayAGS, Inc. (NYSE:AGS) at the end of the second quarter which was 21 in the previous quarter. While we acknowledge the potential of PlayAGS, Inc. (NYSE:AGS) 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 PlayAGS, Inc. (NYSE:AGS) and shared the list of best growth stocks under $10 to buy. 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.