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Polen Capital, an investment management company, released its “Polen U.S. Small Company Growth Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The third quarter had a strong finish for U.S. small-cap equities, driven by interest rate reductions and fading recessionary concerns. In the third quarter, the fund delivered 7.65% gross, and 7.35% net of fees compared to an 8.41% return for the Russell 2000 Growth Index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Polen U.S. Small Company Growth Strategy highlighted stocks like Rambus Inc. (NASDAQ:RMBS), in the third quarter 2024 investor letter. Incorporated in 1990, Rambus Inc. (NASDAQ:RMBS) is a semiconductor products provider. The one-month return of Rambus Inc. (NASDAQ:RMBS) was 23.25%, and its shares lost 26.30% of their value over the last 52 weeks. On November 15, 2024, Rambus Inc. (NASDAQ:RMBS) stock closed at $51.31 per share with a market capitalization of $5.468 billion.
Polen U.S. Small Company Growth Strategy stated the following regarding Rambus Inc. (NASDAQ:RMBS) in its Q3 2024 investor letter:
"During the quarter, we instituted six new additions and five complete sales. We also added to and trimmed several existing positions. Additions included NV5 Global, Rambus Inc. (NASDAQ:RMBS), Paylocity Holdings, Insight Enterprises, elf Beauty, and Dutch Bros.
A close-up of a cutting-edge semiconductor product being assembled by a technician.
Rambus Inc. (NASDAQ:RMBS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Rambus Inc. (NASDAQ:RMBS) at the end of the second quarter which was 25 in the previous quarter. Rambus Inc.’s (NASDAQ:RMBS) third quarter revenue of $145.5 million was in line with expectations. While we acknowledge the potential of Rambus Inc. (NASDAQ:RMBS) 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.