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 Paylocity Holding Corporation (NASDAQ:PCTY). Headquartered in Schaumburg, Illinois, Paylocity Holding Corporation (NASDAQ:PCTY) is a software company that provides cloud-based human capital management and payroll software solutions. The one-month return Paylocity Holding Corporation (NASDAQ:PCTY) was -12.31%, and its shares gained 12.81% of their value over the last 52 weeks. On March 17, 2025, Paylocity Holding Corporation (NASDAQ:PCTY) stock closed at $190.26 per share with a market capitalization of $10.633 billion.
Wasatch Small Cap Growth Strategy stated the following regarding Paylocity Holding Corporation (NASDAQ:PCTY) in its Q4 2024 investor letter:
“Another top contributor was Paylocity Holding Corporation (NASDAQ:PCTY). The company provides software for payroll and human-resources management using the software-as-a-service (SaaS) business model. Paylocity’s stock traded lower early in the year after revenue growth decelerated but rebounded this quarter following steadier operating results. Paylocity has been a longtime holding in the portfolio, and we were pleased to see revenue growth stabilize.”
A business operations manager, looking over the expense management system that helps simplifies the financials for the company.
Paylocity Holding Corporation (NASDAQ:PCTY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Paylocity Holding Corporation (NASDAQ:PCTY) at the end of the fourth quarter compared to 39 in the third quarter. Paylocity Holding Corporation’s (NASDAQ:PCTY) strong results continued in the fiscal second quarter of 2025, with recurring and other revenue growing by 17%. While we acknowledge the potential of Paylocity Holding Corporation (NASDAQ:PCTY) 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.
