Should You Invest in CS Disco (LAW)?

Wasatch Global Investors, an asset management company, released its “Wasatch Micro Cap Growth—U.S. Strategy” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. The strategy declined and underperformed its benchmark, the Russell Microcap Index in the fourth quarter, which gained 4.72%. The disappointing returns in industrials, financials, and consumer discretionary were the primary source of the strategy’s weakness relative to the benchmark while consumer staples positively contributed to the performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Wasatch Micro Cap Growth—U.S. Strategy highlighted stocks like CS Disco, Inc. (NYSE:LAW) in its Q4 2022 investor letter. Headquartered in Austin, Texas, CS Disco, Inc. (NYSE:LAW) is a cloud-native and artificial intelligence-powered legal solutions provider. On March 21, 2023, CS Disco, Inc. (NYSE:LAW) stock closed at $6.40 per share. One-month return of CS Disco, Inc. (NYSE:LAW) was -25.49%, and its shares lost 80.27% of their value over the last 52 weeks. CS Disco, Inc. (NYSE:LAW) has a market capitalization of $393.056 million.

Wasatch Micro Cap Growth—U.S. Strategy made the following comment about CS Disco, Inc. (NYSE:LAW) in its Q4 2022 investor letter:

“CS Disco, Inc. (NYSE:LAW) has faced significant challenges recently. This legal-technology company provides a cloud-based platform of artificial-intelligence solutions for e-discovery, legal-document review and case management. Because CS Disco has a limited history as a publicly traded company and is aggressively spending cash to fund its growth, skeptical investors drove the stock price down. Moreover, the legal-document review segment of the company’s business depends on incremental usage that’s extremely volatile because the segment is very early in the adoption cycle. Based on our visit and our discussions with customers, we’re cautiously optimistic that adoption will ramp up, volatility will decline and revenue per client will grow. In addition, CS Disco’s large cash position could help the company to realize the market opportunity for its cloud-based platform, which we believe has the potential to make the legal industry much more efficient.”

Copyright: zerbor / 123RF Stock Photo

CS Disco, Inc. (NYSE:LAW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held CS Disco, Inc. (NYSE:LAW) at the end of the fourth quarter which was 7 in the previous quarter.

We discussed CS Disco, Inc. (NYSE:LAW) in another article and shared Wasatch Global Investors’ views on the company in the previous quarter. 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.