Here’s Why Wasatch Micro Cap Value Strategy Considered Selling Mark Precious Metals (AMRK)
Wasatch Global Investors, an asset management company, released its “Wasatch Micro Cap Value Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. During the first quarter, the strategy outperformed the benchmark Russell Microcap Index which rose 4.68%. Most of the portfolio holdings of the strategy met or exceeded earnings and revenue expectations in the quarter. Investor sentiments gradually improved as the quarter went on. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Wasatch Micro Cap Value Strategy highlighted stocks like A-Mark Precious Metals, Inc. (NASDAQ:AMRK), in the first quarter 2024 investor letter. A-Mark Precious Metals, Inc. (NASDAQ:AMRK) is a precious metals trading company. The one-month return of A-Mark Precious Metals, Inc. (NASDAQ:AMRK) was -5.51%, and its shares lost 5.51% of their value over the last 52 weeks. On June 7, 2024, A-Mark Precious Metals, Inc. (NASDAQ:AMRK) stock closed at $35.04 per share with a market capitalization of $803.012 million.
Wasatch Micro Cap Value Strategy stated the following regarding A-Mark Precious Metals, Inc. (NASDAQ:AMRK) in its first quarter 2024 investor letter:
"A-Mark Precious Metals, Inc. (NASDAQ:AMRK) is a precious-metals trading company. As such, its stock price tends to move in the opposite direction of gold’s market value because customers shy away from buying gold when the value is high. Although A-Mark’s stock price seems cheap, we have no view on gold’s market value. Moreover, there are other companies that we’d rather own in the strategy. As a result, we decided to move on from our position in A-Mark. Our decision is a good example of how we invest: We don’t look for cheapness alone; we must also identify a catalyst that’s likely to drive the stock price higher."
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A-Mark Precious Metals, Inc. (NASDAQ:AMRK) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held A-Mark Precious Metals, Inc. (NASDAQ:AMRK) at the end of the first quarter which was 15 in the previous quarter. While we acknowledge the potential of A-Mark Precious Metals, Inc. (NASDAQ:AMRK) 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 A-Mark Precious Metals, Inc. (NASDAQ:AMRK) and shared the list of stocks that are on hedge funds’ radar. In addition, please check out our hedge fund investor letters Q1 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.