Should You Hold Gogo (GOGO)?

Madison Investments, an investment advisor, released its “Madison Small Cap Fund” third-quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund (Class Y) declined 6.1% compared to a 5.1% decline for the Russell 2000 Index. Year-to-date, the fund is up 4.3% compared to 2.5% for the index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Madison Small Cap Fund highlighted stocks like Gogo Inc. (NASDAQ:GOGO) in the third quarter 2023 investor letter. Headquartered in Broomfield, Colorado, Gogo Inc. (NASDAQ:GOGO) provides broadband connectivity services to the aviation industry. On October 24, 2023, Gogo Inc. (NASDAQ:GOGO) stock closed at $11.10 per share. One-month return of Gogo Inc. (NASDAQ:GOGO) was -4.80%, and its shares lost 19.27% of their value over the last 52 weeks. Gogo Inc. (NASDAQ:GOGO) has a market capitalization of $1.429 billion.

Madison Small Cap Fund made the following comment about Gogo Inc. (NASDAQ:GOGO) in its Q3 2023 investor letter:

“Gogo Inc. (NASDAQ:GOGO), Magnite Inc., and Model N Inc. were our weakest performers in the quarter. GOGO is a ground-to-air internet service provider for private jets. Unfortunately, GOGO’s subscriber numbers were hurt by the many planes grounded for deferred maintenance in the quarter. During these maintenance periods, GOGO typically pauses the subscription for its clients. GOGO also pushed back its rollout of 5G service due to an error in its chip design. Neither of these issues violates our 5-pillar analysis of GOGO and we believe the company will still generate prodigious free cash flow over the next several years, which we expect to drive the stock higher.”

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Gogo Inc. (NASDAQ:GOGO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Gogo Inc. (NASDAQ:GOGO) at the end of second quarter which was 18 in the previous quarter.

We discussed Gogo Inc. (NASDAQ:GOGO) in another article and shared LVS Advisory’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.