Long Cast Advisers, an investment management firm, released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the cumulative net returns of the fund improved by 6% and year-to-date net returns are 16%. The fund returned a cumulative 209% net of fees, or 13% of CAGR, since its inception in November 2015 through the quarter-end of 3Q24. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Long Cast Advisers highlighted stocks like CoreCard Corporation (NYSE:CCRD) in the third quarter 2024 investor letter. Headquartered in Norcross, Georgia, CoreCard Corporation (NYSE:CCRD) provides technology solutions and processing services to the financial technology and services industry. The one-month return of CoreCard Corporation (NYSE:CCRD) was 24.81%, and its shares gained 4.19% of their value over the last 52 weeks. On November 5, 2024, CoreCard Corporation (NYSE:CCRD) stock closed at $16.15 per share with a market capitalization of $127.604 million.
Long Cast Advisers stated the following regarding CoreCard Corporation (NYSE:CCRD) in its Q3 2024 investor letter:
“One of our largest positions remains CoreCard Corporation (NYSE:CCRD), which I’ve written about extensively over the years and about which there is some news. As you know, CCRD licensed to Goldman Sachs the issuer processing software behind the Apple Card, the most successful credit card launch in history. And as you know, CCRD is now enduring the turbulence created by Goldman’s decision to retreat from consumer credit. A few thoughts to share:
Goldman revenues are going away, but not immediately. In fact, the agreement between Goldman and CCRD was just recently extended from 2027 through 2030, and at higher rates beginning in January 2025. Given this news, it seems CCRD will continue processing for Goldman until the Apple / Goldman contract expires in 2029. (At this point, this is how I picture the relationship between GS and AAPL.)
If you calculate the present value of a stream of cash flows for three years, and then add three more years, the change in value is significant. However, CCRD market value increased just 6% on the news, which implies the market doesn’t view the GS cash flow stream as material. I see this as further evidence that the market is not efficiently valuing the company…” (Click here to read the full text)
A financial specialist working on a digital platform managing accounts receivable & loan transactions.
CoreCard Corporation (NYSE:CCRD) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held CoreCard Corporation (NYSE:CCRD) at the end of the second quarter which was 8 in the previous quarter. CoreCard Corporation’s (NYSE:CCRD) third quarter results were exceeded expectations and recorded total revenue of $15.7 million, up 17% year-over-year. While we acknowledge the potential of CoreCard Corporation (NYSE:CCRD) 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 CoreCard Corporation (NYSE:CCRD) and shared Long Cast Advisers’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.