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Should You Sell The RMR Group (RMR)?

Wasatch Global Investors, an asset management company, released its “Wasatch Micro Cap Value Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. During the first quarter, the strategy outperformed the benchmark Russell Microcap Index which rose 4.68%. Most of the portfolio holdings of the strategy met or exceeded earnings and revenue expectations in the quarter. Investor sentiments gradually improved as the quarter went on. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

Wasatch Micro Cap Value Strategy highlighted stocks like The RMR Group Inc. (NASDAQ:RMR), in the first quarter 2024 investor letter. The RMR Group Inc. (NASDAQ:RMR) is an asset management services provider. The one-month return of The RMR Group Inc. (NASDAQ:RMR) was -4.75%, and its shares lost 2.41% of their value over the last 52 weeks. On June 10, 2024, The RMR Group Inc. (NASDAQ:RMR) stock closed at $23.08 per share with a market capitalization of $386.142 million.

Wasatch Micro Cap Value Strategy stated the following regarding The RMR Group Inc. (NASDAQ:RMR) in its first quarter 2024 investor letter:

"As for our sells, we exited The RMR Group, Inc. (RMR) and Clearwater Paper Corp. (CLW). RMR owns, develops and manages real-estate properties with a focus on senior-living communities, hotels, resorts, cruise ships and full-service travel centers. Clearwater Paper manufactures consumer tissue, bleached paperboard and wood products. We had invested in both companies when we thought they were inexpensive. After their stock prices rose to the point where we saw less upside, we decided to sell."

A financial advisor working on a laptop in a modern office, highlighting the company's investment services.

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The RMR Group Inc. (NASDAQ:RMR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held The RMR Group Inc. (NASDAQ:RMR) at the end of the first quarter which was 13 in the previous quarter. While we acknowledge the potential of The RMR Group Inc. (NASDAQ:RMR) 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 addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.