Next Century Growth Investors, LLC, an investment Management Company, released its “Micro-Cap Strategy” fourth-quarter investor letter. A copy of the letter can be downloaded here. The recent surge in the stock market highlights the significance of current macroeconomic indicators and the Fed’s outlook on future interest rates. The strategy returned 9.54% (net of fees) compared to 15.63% for the Russell Microcap® Growth Index. Over the trailing year, the strategy returned 10.15% compared to 9.10% for the index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
NCG Micro-Cap Strategy featured stocks like ACV Auctions Inc. (NASDAQ:ACVA) in the fourth quarter 2023 investor letter. Headquartered in Buffalo, New York, ACV Auctions Inc. (NASDAQ:ACVA) provides a digital marketplace where buyers and sellers can connect for the online auction of wholesale vehicles. On April 1, 2024, ACV Auctions Inc. (NASDAQ:ACVA) stock closed at $18.28 per share. One-month return of ACV Auctions Inc. (NASDAQ:ACVA) was -2.14%, and its shares gained 45.66% of their value over the last 52 weeks. ACV Auctions Inc. (NASDAQ:ACVA) has a market capitalization of $2.996 billion.
NCG Micro-Cap Strategy stated the following regarding ACV Auctions Inc. (NASDAQ:ACVA) in its fourth quarter 2023 investor letter:
“ACV Auctions Inc. (NASDAQ:ACVA) operates a wholesale used vehicle digital marketplace. Historically, the wholesale used vehicle market has been dominated by physical in-person auctions and ACVA is working to disrupt the market through its digital marketplace. The company has been methodically building its 2-sided marketplace to provide value to both buyers and sellers, attracting both sides with innovative features and attractive pricing. Through this strategy, ACVA has consistently gained market share each year and is on the verge of profitability. With continued execution, we believe ACVA has the opportunity to sustain high growth and create a business with a strong competitive moat.”
A row of used cars with shoppers inspecting them on a lot.
ACV Auctions Inc. (NASDAQ:ACVA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, ACV Auctions Inc. (NASDAQ:ACVA) was held by 25 hedge fund portfolios, compared to 24 in the previous quarter, according to our database.
We discussed ACV Auctions Inc. (NASDAQ:ACVA) in another article and shared Baron Discovery Fund’s views on the company. In addition, please check out our hedge fund investor letters Q4 2023 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.
