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 Boot Barn Holdings, Inc. (NYSE:BOOT). Boot Barn Holdings, Inc. (NYSE:BOOT) is a lifestyle retail chain that offers western and work-related footwear, apparel, and accessories. The one-month return of Boot Barn Holdings, Inc. (NYSE:BOOT) was -25.83%, and its shares gained 21.97% of their value over the last 52 weeks. On March 14, 2025, Boot Barn Holdings, Inc. (NYSE:BOOT) stock closed at $101.81 per share with a market capitalization of $3.115 billion.

Wasatch Small Cap Growth Strategy stated the following regarding Boot Barn Holdings, Inc. (NYSE:BOOT) in its Q4 2024 investor letter:

"Boot Barn Holdings, Inc. (NYSE:BOOT) also detracted. Growth for the Western-wear retailer remains strong, but a surprise announcement that the CEO was leaving weighed on the stock. As a company, the retailer has transformed itself since the pandemic, but we felt many of those positive changes and its future growth potential were priced into the stock. Given Boot Barn’s higher valuation and the change in leadership, we decided to sell the position and pursue other ideas for the portfolio."

A farmer standing in a sun-drenched field wearing overalls and a rugged pair of western-style boots.

Boot Barn Holdings, Inc. (NYSE:BOOT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Boot Barn Holdings, Inc. (NYSE:BOOT) at the end of the fourth quarter compared to 29 in the third quarter. In the third quarter of fiscal 2025, Boot Barn Holdings, Inc.'s (NYSE:BOOT) net sales increased 16.9% to $608 million. While we acknowledge the potential of Boot Barn Holdings, Inc. (NYSE:BOOT) 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 Boot Barn Holdings, Inc. (NYSE:BOOT) and shared the list of best GARP stocks to buy. 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.