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Here’s Why Wasatch Micro Cap Value Strategy Decided to Sell Clearwater Paper Corp. (CLW)

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 Clearwater Paper Corporation (NYSE:CLW), in the first quarter 2024 investor letter. Clearwater Paper Corporation (NYSE:CLW) manufactures bleached paperboards and consumer and parent roll tissues. The one-month return of Clearwater Paper Corporation (NYSE:CLW) was 1.01%, and its shares gained 56.81% of their value over the last 52 weeks. On June 10, 2024, Clearwater Paper Corporation (NYSE:CLW) stock closed at $50.76 per share with a market capitalization of $846.601 million.

Wasatch Micro Cap Value Strategy stated the following regarding Clearwater Paper Corporation (NYSE:CLW) in its first quarter 2024 investor letter:

"As for our sells, we exited the RMR Group, Inc. (RMR) and Clearwater Paper Corporation (NYSE: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 mobile crane moving a shipment of bulk pulp & paper product.

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Clearwater Paper Corporation (NYSE:CLW) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Clearwater Paper Corporation (NYSE:CLW) at the end of the first quarter which was 12 in the previous quarter. Clearwater Paper Corporation (NYSE:CLW) generated net income of $17 million in the quarter, net income per diluted share of $1.02, and an adjusted net income per diluted share of $1.43. While we acknowledge the potential of Clearwater Paper Corporation (NYSE:CLW) 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.