Riverwater Partners, an investment management company, released its “Small Cap Core Strategy” Q3 2024 investor letter. A copy of the letter can be downloaded here. The strategy outperformed its benchmark, the Russell 2000, both in the third quarter and year-to-date, driven by disciplined stock selection across a diverse range of sectors. Energy and IT were the top-performing sectors while Consumer Staples and Healthcare holdings detracted. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Riverwater Partners Small Cap Core Strategy highlighted stocks like Uranium Energy Corp. (AMEX:UEC), in the third quarter 2024 investor letter. Uranium Energy Corp. (AMEX:UEC) specializes in the exploration, pre-extraction, extraction, and processing of uranium and titanium concentrates properties. The one-month return of Uranium Energy Corp. (AMEX:UEC) was -15.19%, and its shares gained 7.34% of their value over the last 52 weeks. On December 30, 2024, Uranium Energy Corp. (AMEX:UEC) stock closed at $6.87 per share with a market capitalization of $2.907 billion.
Riverwater Partners Small Cap Core Strategy stated the following regarding Uranium Energy Corp. (AMEX:UEC) in its Q3 2024 investor letter:
“Our outlook for Q4 2024 and 2025 is optimistic in light of what we consider to be opportunities presented by additions to the portfolio during the third quarter. We purchased three new names in Q3 2024: Merit Medical Systems, Inc. (MMSI), Atmus Filtration Technologies, Inc. (ATMU) and Uranium Energy Corp. (AMEX:UEC).
Lastly, we added Uranium Energy Corp. (UEC). to the portfolio in the third quarter. UEC engages in exploration, extraction, and processing of uranium. Its core holdings are in Wyoming and Texas, with some quality development projects in Canada and plans for producing assets in the United States this year. We purchased UEC to invest in the uranium space. We are bullish on the sector due to the supply and demand mismatch (more future demand than supply), its zero-emission energy footprint and recent deals that highlight its appeal. It is targeted as the main clean energy supply to power the exponential growth in data centers as evidenced by the deals Amazon.com, Inc. (AMZN) and Microsoft Corporation (MSFT) inked with utility companies. It is also a hedge on geopolitical risk as most enriched uranium comes from Russia and most physical uranium comes from Kazakhstan.”
A mining worker in a hard hat and coveralls hammering away at the uranium rich walls of the mine.
Uranium Energy Corp. (AMEX:UEC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Uranium Energy Corp. (AMEX:UEC) at the end of the third quarter which was 28 in the previous quarter. While we acknowledge the potential of Uranium Energy Corp. (AMEX:UEC) 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 Uranium Energy Corp. (AMEX:UEC) and shared the list of stocks to watch from Jim Cramer’s most recent lightning round. 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.