White Falcon Capital Management, an investment fund manager, released its first quarter 2024 investor letter. A copy of the same can be downloaded here. The portfolio achieved a satisfactory result on an absolute basis during the quarter. In the first quarter, the fund was up 8.7% compared to a 12.8% return for the S&P 500 (CAD), 10.5% for the MSCI All Country (CAD), and 6.6% for the S&P TSX TR. In addition, please check the fund’s top five holdings to know its best picks in 2024.
White Falcon Capital Management featured stocks like Endava plc (NYSE:DAVA) in the first quarter 2024 investor letter. Headquartered in London, the United Kingdom, Endava plc (NYSE:DAVA) is a technology services provider. On April 19, 2024, Endava plc (NYSE:DAVA) stock closed at $29.92 per share. One-month return of Endava plc (NYSE:DAVA) was -23.02%, and its shares lost 47.49% of their value over the last 52 weeks. Endava plc (NYSE:DAVA) has a market capitalization of $1.724 billion.
White Falcon Capital Management stated the following regarding Endava plc (NYSE:DAVA) in its first quarter 2024 investor letter:
“The big detractors this quarter were Endava plc (NYSE:DAVA) and Lifecore Biomedical. Our laggards – Endava and Lifecore – have detracted ~ 350 bps from performance this quarter. Endava was down 40% after it reported earnings in February. This was a 3% position before this decline but we have since added to the stock to make it one of the top 5 positions (by cost) in the White Falcon portfolio. Endava is a founder-led IT service provider headquartered in London, UK. It competes with the likes of Accenture and provides IT services to clients in the financial services, travel, retail, software, healthcare among other industries. We believe scaled IT service providers are good businesses as they are essentially a ‘royalty’ on IT spend. They are an important link between technology and corporations who increasingly need technology to transform their business. We see a favorable backdrop for businesses like Endava with rising investments in technology, growing trends in outsourcing, and the emergence of new technologies such as Artificial Intelligence (AI). Importantly, we believe that Endava has the culture, scale and competencies required to succeed.
So what happened? Endava guided for negative growth in its business for the current fiscal year (ending June 2024). On the other hand, management had made hiring decisions expecting a growth in revenues leading to a mis-match in the cost structure. Due to this, operating margins collapsed and Endava’s earnings are likely to decline ~30% in FY 2024 compared to FY 2023…” (Click here to read the full text)
A tech expert in a suit presenting a new IT strategy in front of a corporate audience.
Endava plc (NYSE:DAVA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Endava plc (NYSE:DAVA) was held by 10 hedge fund portfolios, compared to 11 in the previous quarter, according to our database.
We previously discussed Endava plc (NYSE:DAVA) in another article, where we shared The RiverPark/Next Century Growth Fund’s views on the company. 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.
