Columbia Acorn Fund, distributed by Columbia Management Investment Distributors, released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund returned 9.15% while the benchmark, the Russell 2500 Growth Index, returned 6.99%. A strong market rally occurred throughout the quarter, and the Columbia Acorn Fund beat its benchmark due to positive stock selection. With recoveries for smaller caps and several cyclical stocks, the third quarter witnessed a return to animal spirits following the previous quarter’s more risk-averse environment. In addition, you can check the fund’s top 5 holdings for its best picks for 2024.
Columbia Acorn Fund highlighted stocks like Super Micro Computer, Inc. (NASDAQ:SMCI), in the third quarter 2024 investor letter. Super Micro Computer, Inc. (NASDAQ:SMCI) develops and manufactures high-performance server and storage solutions. The one-month return of Super Micro Computer, Inc. (NASDAQ:SMCI) was -48.26%, and its shares lost 4.14% of their value over the last 52 weeks. On November 8, 2024, Super Micro Computer, Inc. (NASDAQ:SMCI) stock closed at $24.52 per share with a market capitalization of $14.358 billion.
Columbia Acorn Fund stated the following regarding Super Micro Computer, Inc. (NASDAQ:SMCI) in its Q3 2024 investor letter:
“Super Micro Computer, Inc. (NASDAQ:SMCI) had a tough quarter due to a confluence of negative events. It declined, but is still up significantly for the year. While demand for the company’s AI server racks remains strong, with revenue up over 100%, gross margins have fallen sharply for two straight quarters, implying a price war. In addition, Super Micro was the subject of a short-seller report and a delay in filing its annual report with the SEC. We have been taking profits in the stock all year and have only a small position, which we are maintaining given the strong performance and demand for Super Micro’s AI racks and a depressed stock valuation.”
A team of technicians in a server room, testing and managing the newest server solutions.
Super Micro Computer, Inc. (NASDAQ:SMCI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Super Micro Computer, Inc. (NASDAQ:SMCI) at the end of the second quarter which was 35 in the previous quarter. While we acknowledge the potential of Super Micro Computer, Inc. (NASDAQ:SMCI) 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 Super Micro Computer, Inc. (NASDAQ:SMCI) and shared AI news and ratings investors should not miss. 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.