Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Small Cap Growth Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. After experiencing losses in the second quarter, small-cap stocks notably increased in the third quarter. The Russell 2000 Growth Index (up 8.41%) underperformed the Russell 2000 Value Index (up 10.11%). In addition, please check the fund’s top five holdings to know its best picks in 2024.
Carillon Eagle Small Cap Growth Fund highlighted stocks like Rambus Inc. (NASDAQ:RMBS), in the third quarter 2024 investor letter. Incorporated in 1990, Rambus Inc. (NASDAQ:RMBS) is a semiconductor products provider. The one-month return of Rambus Inc. (NASDAQ:RMBS) was 13.27%, and its shares lost 14.68% of their value over the last 52 weeks. On November 26, 2024, Rambus Inc. (NASDAQ:RMBS) stock closed at $57.77 per share with a market capitalization of $6.157 billion.
Carillon Eagle Small Cap Growth Fund stated the following regarding Rambus Inc. (NASDAQ:RMBS) in its Q3 2024 investor letter:
“Rambus Inc. (NASDAQ:RMBS) provides interface technology that is critical for the dynamic random access memory (DRAM) market. Investors have been disappointed at the pace of transition in the DRAM memory market and thus Rambus has seen revenue growth slow. Additionally, concerns around the health of the DRAM memory market in general have been a headwind. We believe Rambus remains in a strong position to see outsized growth from the DRAM transition given design wins, which should lead to market share gains in 2025 and 2026. Furthermore, we believe the company’s business model positions it for strong free cash flow.”
A close-up of a cutting-edge semiconductor product being assembled by a technician.
Rambus Inc. (NASDAQ:RMBS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Rambus Inc. (NASDAQ:RMBS) at the end of the third quarter which was 21 in the previous quarter. Rambus Inc.’s (NASDAQ:RMBS) third quarter revenue of $145.5 million was in line with expectations. While we acknowledge the potential of Rambus Inc. (NASDAQ:RMBS) 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 Rambus Inc. (NASDAQ:RMBS) and shared Columbia Acorn Fund’s views on the company. Polen U.S. Small Company Growth Strategy included Rambus Inc. (NASDAQ:RMBS) in its portfolio during Q3 2024, anticipating that its earnings and free cash flow per share will grow by 15%-17% each year throughout the business cycle. 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.