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Wasatch Global Investors, an asset management company, released its “Wasatch Small Cap Growth Strategy” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. US small-caps experienced modest gains in Q4, driven by presidential election and anticipated economic growth and less regulation. However, markets fell in December due to higher interest rates. Against this backdrop the strategy gained and outperformed the benchmark Russell 2000® Growth Index, which was up 1.70%. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Wasatch Small Cap Growth Strategy emphasized stocks such as BellRing Brands, Inc. (NYSE:BRBR). Headquartered in Saint Louis, Missouri, BellRing Brands, Inc. (NYSE:BRBR) provides various nutrition products. The one-month return of BellRing Brands, Inc. (NYSE:BRBR) was -12.00%, and its shares gained 11.02% of their value over the last 52 weeks. On March 14, 2025, BellRing Brands, Inc. (NYSE:BRBR) stock closed at $67.48 per share with a market capitalization of $8.657 billion.
Wasatch Small Cap Growth Strategy stated the following regarding BellRing Brands, Inc. (NYSE:BRBR) in its Q4 2024 investor letter:
"BellRing Brands, Inc. (NYSE:BRBR) was a top contributor to strategy performance during the quarter. BellRing provides various nutritional products and is best known for its Premier Protein and Dymatize brands. The company has continued to produce solid operating results. Net earnings for BellRing’s latest quarter were up 55% from the same period last year, and its Premier Protein brand reached all-time highs in household penetration. As fundamentals continue to come in ahead of estimates, the stock has moved higher."
A wide shot of an aisle in a food store lined with different nutrition products.
BellRing Brands, Inc. (NYSE:BRBR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held BellRing Brands, Inc. (NYSE:BRBR) at the end of the fourth quarter compared to 43 in the third quarter. BellRing Brands, Inc.’s (NYSE:BRBR) net sales for the first quarter of fiscal 2025 reached $533 million, while the adjusted EBITDA stood at $125 million. This marks a 24% increase in net sales compared to the previous year and a 25% rise in adjusted EBITDA. While we acknowledge the potential of BellRing Brands, Inc. (NYSE:BRBR) 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.