Brown Capital Management, an investment management company, released its “The Brown Capital Management Small Company Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The Small Company Fund returned 8.48% in the quarter, roughly in line with the Russell 2000 Growth index’s 8.41% return. The Fund has only gained 1.80% year to date, far behind the benchmark’s return of 13.22%, despite this quarter representing a minor move toward a fundamentally driven market. In addition, check the fund’s top five holdings to know its best picks in 2024.
The Brown Capital Management Small Company Fund highlighted stocks like Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD), in the third quarter 2024 investor letter. Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) is a healthcare company, specializes in the development and commercialization of gastrointestinal (GI) products. The one-month return of Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) was 12.79%, and its shares lost 65.30% of their value over the last 52 weeks. On December 19, 2024, Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) stock closed at $3.8800 per share with a market capitalization of $620.909 million.
The Brown Capital Management Small Company Fund stated the following regarding Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) in its Q3 2024 investor letter:
“Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) develops and commercializes drugs designed to treat gastrointestinal (GI) diseases. The company’s flagship drug, Linzess (linaclotide) is indicated for the treatment of irritable bowel syndrome with constipation (IBS-C), or chronic idiopathic constipation (CIC). Ironwood has a strategic partnership with AbbVie, a leading pharmaceutical company that supports the development and commercialization of linaclotide in the U.S. AbbVie provides Ironwood with a much larger distribution and commercial infrastructure, allowing the company to punch well above its small weight class. The downside is that this limits future revenue and profitability, as Ironwood must split the upside with AbbVie.”
A medical laboratory surrounded by advanced equipment, symbolizing the company’s cutting-edge innovation in healthcare.
Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) at the end of the third quarter which was 27 in the previous quarter. While we acknowledge the potential of Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) 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 Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) and shared the list of penny stocks with biggest upside potential according to analysts. 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.