Should You Hold Grid Dynamics Holdings (GDYN) for its Long-Term Growth Opportunities?
Renaissance Investment Management, an investment management company, released its “Small Cap Growth Strategy” fourth-quarter investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy returned 1.39% (net) compared to a 4.13% return for the Russell 2000 Growth Index and a 6.98% return for the S&P/Barra Small Cap 600 Growth. The strategy returned -20.41% in 2022 compared to indexes’ return of -26.36% and -21.08% respectively. Energy and Consumer Staples were the best-performing sectors in the quarter, while Health Care and Communication Services sectors detracted. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Renaissance Small Cap Growth Strategy highlighted stocks like Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) in the Q4 2022 investor letter. Headquartered in San Ramon, California, Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) is an enterprise-level digital transformation services provider. On April 4, 2023, Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) stock closed at $11.43 per share. One-month return of Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) was -1.64%, and its shares lost 24.00% of their value over the last 52 weeks. Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) has a market capitalization of $855.34 million.
Renaissance Small Cap Growth Strategy made the following comment about Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) in its Q4 2022 investor letter:
"Grid Dynamics Holdings, Inc. (NASDAQ:GDYN), a provider of IT consulting and outsourcing services, detracted the most from performance in the quarter as some of its retail clients reduced their spending plans for technology upgrades due to slower economic conditions. For the near term, growth expectations fell to 20% revenue growth for the fourth quarter after rising 43% in the third quarter, adding risk to the company’s growth profile for 2023. We remain bullish on the company’s prospects, however, as the management team continues to add new logos in the technology sector and believes that there are significant growth opportunities within its current client base."
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Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) at the end of the fourth quarter which was 19 in the previous quarter.
We discussed Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) in another article and shared Wasatch Micro Cap Growth—U.S. Strategy's views on the company. In addition, please check out our hedge fund investor letters Q4 2022 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.
