Polen Capital, an investment management company, released its “Polen U.S. Small Company Growth Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The third quarter had a strong finish for U.S. small-cap equities, driven by interest rate reductions and fading recessionary concerns. In the third quarter, the fund delivered 7.65% gross, and 7.35% net of fees compared to an 8.41% return for the Russell 2000 Growth Index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Polen U.S. Small Company Growth Strategy highlighted stocks like SiTime Corporation (NASDAQ:SITM) in the third quarter 2024 investor letter. SiTime Corporation (NASDAQ:SITM) designs and develops solutions for silicon timing systems. The one-month return of SiTime Corporation (NASDAQ:SITM) was 7.88%, and its shares gained 73.58% of their value over the last 52 weeks. On November 18, 2024, SiTime Corporation (NASDAQ:SITM) stock closed at $199.93 per share with a market capitalization of $4.671 billion.
Polen U.S. Small Company Growth Strategy stated the following regarding SiTime Corporation (NASDAQ:SITM) in its Q3 2024 investor letter:
“We exited four positions during the quarter, including SiTime Corporation (NASDAQ:SITM), AppFolio, RH, Doximity, and Alight. SiTime was a successful investment for us. As the stock was swept up by AI-related momentum, we used the opportunity to buy Rambus, which we view as an upgrade on quality and returns.”
A series of industrial production lines, radiating silicon timing solutions to the world.
SiTime Corporation (NASDAQ:SITM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held SiTime Corporation (NASDAQ:SITM) at the end of the second quarter which was 14 in the previous quarter. SiTime Corporation’s (NASDAQ:SITM) third quarter revenue increased 62% to $57.7 million and net income increased to 17% of revenue. While we acknowledge the potential of SiTime Corporation (NASDAQ:SITM) 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 SiTime Corporation (NASDAQ:SITM) and shared trending AI stocks on latest news and analyst ratings. 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.