Wasatch Global Investors, an asset management company, released its “Wasatch Micro-Cap Growth-U.S. Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter, U.S.-based micro-cap companies benefited from optimism surrounding decreasing interest rates and a smooth economic transition, which led to greater investor appetite for risk. The strategy appreciated and outperformed the benchmark Russell Microcap® Growth Index in the quarter, which returned 8.57%. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Wasatch Micro-Cap Growth-U.S. Strategy highlighted stocks like Esquire Financial Holdings, Inc. (NASDAQ:ESQ) in the third quarter 2024 investor letter. Esquire Financial Holdings, Inc. (NASDAQ:ESQ) is a bank holding company for Esquire Bank, National Association. The one-month return of Esquire Financial Holdings, Inc. (NASDAQ:ESQ) was 0.31%, and its shares gained 62.37% of their value over the last 52 weeks. On January 2, 2024, Esquire Financial Holdings, Inc. (NASDAQ:ESQ) stock closed at $78.10 per share with a market capitalization of $649.894 million.
Wasatch Micro-Cap Growth-U.S. Strategy stated the following regarding Esquire Financial Holdings, Inc. (NASDAQ:ESQ) in its Q3 2024 investor letter:
“Esquire Financial Holdings, Inc. (NASDAQ:ESQ) was another of the strategy’s strongest performers. The strategy does not normally invest in banks because banks typically do not have differentiated business models, which is a key attribute we look for in our investment candidates. However, as a niche lender to the legal market, which includes attorneys and law firms, Esquire provides an exception. The company creates financing and lending solutions custom-designed to the needs of the legal market, which has been underserved, enabling Esquire to take market share from traditional banks. The company delivered earnings above expectations this quarter, driving its stock price higher.”
A close-up of a hand signing contracts in a board room, a symbol of efficient business decisions.
Esquire Financial Holdings, Inc. (NASDAQ:ESQ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held Esquire Financial Holdings, Inc. (NASDAQ:ESQ) at the end of the third quarter which was 9 in the previous quarter. While we acknowledge the potential of Esquire Financial Holdings, Inc. (NASDAQ:ESQ) 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 Esquire Financial Holdings, Inc. (NASDAQ:ESQ) and shared the list of most profitable banks in the world. 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.