Next Century Growth Investors, LLC, an investment Management Company, released its “Micro-Cap Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. Equity markets were mixed in the second quarter, large-cap stocks continue to outperform small-cap stocks. The strategy returned (0.95)% (net of fees) compared to a (5.56)% return for the Russell Microcap Growth Index. The Strategy outperformed in health care and technology and underperformed in consumer discretionary during the quarter. The firm believes that the economy’s trajectory and the outlook for earnings forecasts will determine the future course of the market. In addition, please check the fund’s top five holdings to know its best picks in 2024.
NCG Micro-Cap Strategy highlighted stocks like Universal Stainless & Alloy Products, Inc. (NASDAQ:USAP), in the second quarter 2024 investor letter. Universal Stainless & Alloy Products, Inc. (NASDAQ:USAP) manufactures and distributes semi-finished and finished specialty steel products. The one-month return of Universal Stainless & Alloy Products, Inc. (NASDAQ:USAP) was -4.30%, and its shares gained 171.43% of their value over the last 52 weeks. On September 6, 2024, Universal Stainless & Alloy Products, Inc. (NASDAQ:USAP) stock closed at $34.96 per share with a market capitalization of $322.959 million.
NCG Micro-Cap Strategy stated the following regarding Universal Stainless & Alloy Products, Inc. (NASDAQ:USAP) in its Q2 2024 investor letter:
“Universal Stainless & Alloy Products, Inc. (NASDAQ:USAP) is a leading manufacturer of specialty steel products for use in aerospace, energy, heavy equipment, and general industrial. We believe USAP is a beneficiary of the strength in the commercial aerospace market, and they have been winning market share with new products and additional customer approvals.”
A large steel ingot being forged with sparks flying from a steel mill.
Universal Stainless & Alloy Products, Inc. (NASDAQ:USAP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Universal Stainless & Alloy Products, Inc. (NASDAQ:USAP) at the end of the second quarter which was 12 in the previous quarter. Universal Stainless & Alloy Products, Inc. (NASDAQ:USAP) generated $82.8 million in revenues, up 20% year-over-year. While we acknowledge the potential of Universal Stainless & Alloy Products, Inc. (NASDAQ:USAP) 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 Universal Stainless & Alloy Products, Inc. (NASDAQ:USAP) and shared the list of best small-cap stocks to buy according to small-cap-focused hedge fund Minerva Advisors. In addition, please check out our hedge fund investor letters Q2 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.