Rogue Funds, an investment management company, released its third quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned -3.03% net of fees in the quarter. The fund faced a slight decline in the value of the portfolio, which was quite disappointing. Two of the fund’s core positions fell by more than 50% since the firm acquired them, mainly due to significant changes in their investment theses. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Rogue Funds highlighted stocks like Aware, Inc. (NASDAQ:AWRE) in the third quarter 2024 investor letter. Aware, Inc. (NASDAQ:AWRE) is an authentication company that offers biometrics software products and solutions. The one-month return of Aware, Inc. (NASDAQ:AWRE) was 7.74%, and its shares gained 5.70% of their value over the last 52 weeks. On January 2, 2024, Aware, Inc. (NASDAQ:AWRE) stock closed at $1.67 per share with a market capitalization of $35.411 million.
Rogue Funds stated the following regarding Aware, Inc. (NASDAQ:AWRE) in its Q3 2024 investor letter:
“Aware, Inc. (NASDAQ:AWRE): You can read more about this investment on the Rogue Funds blog here. As I explained in my initial report, Aware is a lumpy revenue business (converting to a smoother long term ARR business) and this continued in the Q2 report. Q2 looked fairly good but the stock has since declined back to the pre-quarter release levels due to the fact that the market does not think they are in a place to grow at 15% above their Q3 standards from last year (which was a blockbuster quarter). The good news is that the management team is firing on all cylinders when it comes to the cost-cutting strategy, which is directly in line with management expectations. The bad news is that they no longer have their chief revenue officer. They are now getting into the check-in biometrics business which is growing very rapidly but has a lot of competition. The downside is very limited with Aware ($29m in cash and $40m market cap) as it is very unlikely that they will ever trade below cash since they are sitting very close to breakeven (stopping cash burn). We did take some profits (but not much) off the table here and it is the 5th largest position in the fund.”
A female customer using Knomi mobile biometric authentication framework to log into her app account.
Aware, Inc. (NASDAQ:AWRE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 5 hedge fund portfolios held Aware, Inc. (NASDAQ:AWRE) at the end of the third quarter which was 4 in the previous quarter. Aware, Inc.’s (NASDAQ:AWRE) total revenue came in at $3.8 million in the third quarter compared to $6.4 million in Q3 of last year. While we acknowledge the potential of Aware, Inc. (NASDAQ:AWRE) 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 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.