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 PACS Group, Inc. (NYSE:PACS). PACS Group, Inc. (NYSE:PACS) offers skilled nursing facilities and assisted living facilities. The one-month return of PACS Group, Inc. (NYSE:PACS) was -8.36%, and YTD its shares lost 6.41% of their value. On March 17, 2025, PACS Group, Inc. (NYSE:PACS) stock closed at $12.27 per share with a market capitalization of $1.904 billion.

Wasatch Small Cap Growth Strategy stated the following regarding PACS Group, Inc. (NYSE:PACS) in its Q4 2024 investor letter:

"PACS Group, Inc. (NYSE:PACS) was another large detractor. The company’s subsidiaries deliver post-acute health care, assisted living and skilled nursing care services. PACS Group postponed releasing quarterly results after it received civil investigative demands from the federal government regarding the company’s reimbursement and referral practices. Given questions about the business, we decided to move on from the stock and sold our position."10 Best Alternatives to Nursing Homes and Assisted Living

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PACS Group, Inc. (NYSE:PACS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held PACS Group, Inc. (NYSE:PACS) at the end of the fourth quarter compared to 32 in the third quarter. While we acknowledge the potential of PACS Group, Inc. (NYSE:PACS) 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.

In another article, we discussed PACS Group, Inc. (NYSE:PACS) and shared the list of worst performing mid cap stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q4 2024 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.

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