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Wasatch Global Investors, an asset management company, released its “Wasatch Small Cap Growth Strategy” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. US small-caps experienced modest gains in Q4, driven by presidential election and anticipated economic growth and less regulation. However, markets fell in December due to higher interest rates. Against this backdrop the strategy gained and outperformed the benchmark Russell 2000® Growth Index, which was up 1.70%. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Wasatch Small Cap Growth Strategy emphasized stocks such as TransMedics Group, Inc. (NASDAQ:TMDX). TransMedics Group, Inc. (NASDAQ:TMDX) is a medical technology company. The one-month return of TransMedics Group, Inc. (NASDAQ:TMDX) was -5.06%, and its shares lost 7.59% of their value over the last 52 weeks. On March 14, 2025, TransMedics Group, Inc. (NASDAQ:TMDX) stock closed at $68.53 per share with a market capitalization of $2.307 billion.
Wasatch Small Cap Growth Strategy stated the following regarding TransMedics Group, Inc. (NASDAQ:TMDX) in its Q4 2024 investor letter:
“The largest detractor from strategy performance was TransMedics Group, Inc. (NASDAQ:TMDX). The medical technology company develops and sells organ preservation and assessment technologies for organ transplants. The company’s stock experienced substantial gains for much of 2024 but was down in October after the company released quarterly earnings that fell short of investors’ expectations. However, we continue to believe TransMedics has established itself as the standard of care in the organ transplant market.”
A surgeon in a modern operating theatre performing a transplant surgery with medical technology.
TransMedics Group, Inc. (NASDAQ:TMDX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held TransMedics Group, Inc. (NASDAQ:TMDX) at the end of the fourth quarter compared to 32 in the third quarter. TransMedics Group, Inc. (NASDAQ:TMDX) reported $121.6 million in revenues in the fourth quarter, representing a 49.8% year-over-year growth and 11.8% sequential growth from Q3 2024. While we acknowledge the potential of TransMedics Group, Inc. (NASDAQ:TMDX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
