1 Main Capital, a boutique investment firm, released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned 4.0% net in the third quarter, compared to 5.9% and 9.3% for the S&P 500 (SPX) and Russell 2000 (RTY). Year-to-date the Fund delivered 11.3% net, compared to 22.1% and 11.2% for the SPX and RTY. When inflation statistics fell below forecasts early in the quarter, there was hope that the Fed would start lowering interest rates as early as September, which spurred the RTY surge. After all, small-cap earnings are more sensitive to changes in interest rates and economic growth than large-cap earnings. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
1 Main Capital highlighted stocks like ParkerVision, Inc. (OTC:PRKR) in the Q3 2024 investor letter. ParkerVision, Inc. (OTC:PRKR) is a radio frequency technologies and integrated circuits manufacturer for wireless communication products. The one-month return of ParkerVision, Inc. (OTC:PRKR) was 80.96%, and its shares gained 930.58% of their value over the last 52 weeks. On November 4, 2024, ParkerVision, Inc. (OTC:PRKR) stock closed at $0.76 per share with a market capitalization of $68.152 million.
1 Main Capital stated the following regarding ParkerVision, Inc. (OTC:PRKR) in its Q3 2024 investor letter:
“During the third quarter, the Fund initiated an opportunistic investment in ParkerVision, Inc. (OTC:PRKR) after the company received a highly favorable ruling from the Federal Circuity Court of Appeals in its longstanding litigation against Qualcomm Inc (QCOM).
Based on the ruling, I believe that there is a high chance that the case will go to trial in early 2025 and that PRKR should prevail. This could lead to a multi-billion-dollar award, compared to the Fund’s cost which implied a fully diluted market cap of under $50 million…” (Click here to read the full text)
A professional looking suit clad figure interacting with one of the companies radio-frequency identification products. .
ParkerVision, Inc. (OTC:PRKR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. While we acknowledge the potential of ParkerVision, Inc. (OTC:PRKR) 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 addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.