Is Nova Ltd. (NVMI) a Smart Long-Term Buy?

Wasatch Global Investors, an investment management firm, published its “Wasatch Small Cap Value Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The Wasatch Small Cap Value Fund—Investor Class gained 6.60% in the fourth quarter of 2021 and outperformed its benchmark. For the one-year period ended December 31, 2021, the Fund gained 25.38%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Wasatch Small Cap Value Fund, in its Q4 2021 investor letter, mentioned Nova Ltd. (NASDAQ: NVMI) and discussed its stance on the firm. Nova Ltd. is a Rehovot, Israel-based semiconductor company with a $2.8 billion market capitalization. NVMI delivered a -31.97% return since the beginning of the year, while its 12-month returns are up by 29.36%. The stock closed at $99.66 per share on March 07, 2022.

Here is what Wasatch Small Cap Value Fund has to say about Nova Ltd. in its Q4 2021 investor letter:

“Stock selection had a generally favorable impact in the quarter. On the positive side, Nova Ltd. (NVMI), which provides measurement tools for semiconductor producers, was the top performer for the Fund. Nova shares rallied thanks to general strength in the chip industry, as well as companyspecific drivers such as its emphasis on nextgeneration technologies and the trend toward companies seeking to improve their geographic diversification to offset supply-chain woes.”

Semiconductor

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Our calculations show that Nova Ltd. (NASDAQ: NVMI) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. NVMI was in 19 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 22 funds in the previous quarter. Nova Ltd. (NASDAQ: NVMI) delivered a -19.57% return in the past 3 months.

In January 2022, we also shared another hedge fund’s views on NVMI in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.