Laughing Water Capital, an investment management company, released its first-quarter 2024 investor letter. A copy of the same can be downloaded here. In the first quarter, investment in the fund returned 8.4% after all fees and expenses compared to 10.6% and 5.2% returns for the SP500TR and R2000 during the quarter, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Laughing Water Capital featured stocks like TransAct Technologies Incorporated (NASDAQ:TACT) in the first quarter 2024 investor letter. Headquartered in Hamden, Connecticut, TransAct Technologies Incorporated (NASDAQ:TACT) designs and develops transaction-based and specialty printers and terminals. On May 2, 2024, TransAct Technologies Incorporated (NASDAQ:TACT) stock closed at $5.18 per share. One-month return of TransAct Technologies Incorporated (NASDAQ:TACT) was 5.50%, and its shares lost 7.50% of their value over the last 52 weeks. TransAct Technologies Incorporated (NASDAQ:TACT) has a market capitalization of $51.774 million.
Laughing Water Capital stated the following regarding TransAct Technologies Incorporated (NASDAQ:TACT) in its first quarter 2024 investor letter:
“TransAct Technologies Incorporated (NASDAQ:TACT) – Transact, a small position, is one half of a duopoly that makes printers for slot machines, and has also been building back of house restaurant software attached to printers. The company has been running a strategic review which I think could surface value of somewhere between $10-$14 per share, but unfortunately this process is at risk due to problems with one of the company’s largest shareholders.
In brief, B. Riley is a hybrid brokerage/bank/investment platform, and they are currently being investigated by the SEC for actions that may be attached to securities fraud.iv As such, B. Riley has been selling the stocks they own, and the presumption from the market is that they will continue to be a seller. In the case of Transact, which is an illiquid stock, I believe this is acting as a major overhang on shares. Public share price unfortunately acts as an anchor when trying to sell a company, so not only do we have a noneconomic seller of TACT shares, but the sale process of the company may be knocked off track as well.
This is the third company we presently own where a top holder is dealing with a non-economic circumstance that has forced them to sell shares, or created the impression that they will shortly be selling shares. This is statistically highly unusual, and we have little choice but to wait for these overhangs to clear either by the sellers exiting their positions, or otherwise making their intentions known.”
A specialized printing machine producing a unique product in a sterile laboratory environment.
TransAct Technologies Incorporated (NASDAQ:TACT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 6 hedge fund portfolios held TransAct Technologies Incorporated (NASDAQ:TACT) at the end of the fourth quarter which was 7 in the previous quarter.
We previously discussed TransAct Technologies Incorporated (NASDAQ:TACT) in another article, where we shared the list of best affordable tech stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 25 Most Profitable Companies in the US
- 15 Best Places to Retire in Florida That You’ve Never Heard Of
- 30 Most Fun Cities in the US in 2024
Disclosure: None. This article is originally published at Insider Monkey.
