Latest news with #FredAlgerManagement
Yahoo
29-05-2025
- Business
- Yahoo
Broader Market Dynamics Pulled Down Astera Labs (ALAB) in Q1
Fred Alger Management, an investment management company, released its 'Alger Mid Cap Focus Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q1 2025, U.S. equities faced increased volatility due to shifting fiscal, monetary, and trade policies. The rise of advanced AI models from China, which matched U.S. capabilities at lower costs, intensified this uncertainty. As a result, investors reevaluated the high capital expenditures of U.S. tech firms, leading to a sell-off in AI stocks and concerns over domestic AI returns. Against this backdrop, Class A shares of the Fund underperformed the Russell Midcap Growth in the quarter. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Alger Mid Cap Focus Fund highlighted stocks such as Astera Labs, Inc. (NASDAQ:ALAB). Astera Labs, Inc. (NASDAQ:ALAB) engages in the manufacturing of semiconductor-based connectivity solutions for cloud and AI infrastructure. The one-month return of Astera Labs, Inc. (NASDAQ:ALAB) was 39.35%, and its shares have appreciated by 47.40% over the past 52 weeks. On May 28, 2025, Astera Labs, Inc. (NASDAQ:ALAB) closed at $96.46 per share, with a market capitalization of $15.908 billion. Alger Mid Cap Focus Fund stated the following regarding Astera Labs, Inc. (NASDAQ:ALAB) in its Q1 2025 investor letter: "Astera Labs, Inc. (NASDAQ:ALAB) is a semiconductor company specializing in connectivity solutions for data-centric systems, including cloud computing, artificial intelligence, and machine learning. Its products optimize data flow and performance in servers, GPUs, and AI accelerators, addressing bottlenecks in high-performance computing environments. The company's Intelligent Connectivity Platform (ICP) integrates advanced semiconductor hardware with the proprietary COSMOS software suite, delivering customizable and cost-effective solutions. Backed by strong relationships with leading cloud and AI providers, we believe Astera is well positioned in rapidly growing markets, demonstrating high profitability and industry-leading gross margins. During the quarter, the company reported strong fiscal fourth-quarter operating results, where revenues beat analyst estimates. However, shares faced downward pressure following broader market dynamics, including concerns over emerging competition." A robotic arm holding a semiconductor chip, emphasizing the precision and quality of the company's production equipment. Astera Labs, Inc. (NASDAQ:ALAB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Astera Labs, Inc. (NASDAQ:ALAB) at the end of the first quarter, which was 51 in the previous quarter. In Q1 2025, Astera Labs, Inc. (NASDAQ:ALAB) reported revenue of $159.4 million, up 13% from the prior quarter and up 144% from Q1 2024. While we acknowledge the potential of Astera Labs, Inc. (NASDAQ:ALAB) 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 undervalued AI stock set for massive gains. In another article, we covered Astera Labs, Inc. (NASDAQ:ALAB) and shared the list of stocks on Jim Cramer's radar recently. In addition, please check out our hedge fund investor letters Q1 2025 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.
Yahoo
29-05-2025
- Business
- Yahoo
Broader Market Dynamics Pulled Astera Labs (ALAB) in Q1
Fred Alger Management, an investment management company, released its 'Alger Mid Cap Focus Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q1 2025, U.S. equities faced increased volatility due to shifting fiscal, monetary, and trade policies. The rise of advanced AI models from China, which matched U.S. capabilities at lower costs, intensified this uncertainty. As a result, investors reevaluated the high capital expenditures of U.S. tech firms, leading to a sell-off in AI stocks and concerns over domestic AI returns. Against this backdrop, Class A shares of the Fund underperformed the Russell Midcap Growth in the quarter. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Alger Mid Cap Focus Fund highlighted stocks such as Astera Labs, Inc. (NASDAQ:ALAB). Astera Labs, Inc. (NASDAQ:ALAB) engages in the manufacturing of semiconductor-based connectivity solutions for cloud and AI infrastructure. The one-month return of Astera Labs, Inc. (NASDAQ:ALAB) was 39.35%, and its shares have appreciated by 47.40% over the past 52 weeks. On May 28, 2025, Astera Labs, Inc. (NASDAQ:ALAB) closed at $96.46 per share, with a market capitalization of $15.908 billion. Alger Mid Cap Focus Fund stated the following regarding Astera Labs, Inc. (NASDAQ:ALAB) in its Q1 2025 investor letter: "Astera Labs, Inc. (NASDAQ:ALAB) is a semiconductor company specializing in connectivity solutions for data-centric systems, including cloud computing, artificial intelligence, and machine learning. Its products optimize data flow and performance in servers, GPUs, and AI accelerators, addressing bottlenecks in high-performance computing environments. The company's Intelligent Connectivity Platform (ICP) integrates advanced semiconductor hardware with the proprietary COSMOS software suite, delivering customizable and cost-effective solutions. Backed by strong relationships with leading cloud and AI providers, we believe Astera is well positioned in rapidly growing markets, demonstrating high profitability and industry-leading gross margins. During the quarter, the company reported strong fiscal fourth-quarter operating results, where revenues beat analyst estimates. However, shares faced downward pressure following broader market dynamics, including concerns over emerging competition." A robotic arm holding a semiconductor chip, emphasizing the precision and quality of the company's production equipment. Astera Labs, Inc. (NASDAQ:ALAB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Astera Labs, Inc. (NASDAQ:ALAB) at the end of the first quarter, which was 51 in the previous quarter. In Q1 2025, Astera Labs, Inc. (NASDAQ:ALAB) reported revenue of $159.4 million, up 13% from the prior quarter and up 144% from Q1 2024. While we acknowledge the potential of Astera Labs, Inc. (NASDAQ:ALAB) 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 undervalued AI stock set for massive gains. In another article, we covered Astera Labs, Inc. (NASDAQ:ALAB) and shared the list of stocks on Jim Cramer's radar recently. In addition, please check out our hedge fund investor letters Q1 2025 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. Sign in to access your portfolio
Yahoo
19-04-2025
- Business
- Yahoo
Here's Why Agilysys (AGYS) Traded Down in Q1
Fred Alger Management, an investment management company, released its 'Alger Small Cap Focus Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. Changing trade, monetary, and fiscal policies increased volatility in US stocks. The emergence of artificial intelligence (AI) models from China added to the uncertainty. Against this backdrop, the class A shares of the fund underperformed the Russell 2000 Growth Index. The Communication Services and Energy sectors contributed to the relative performance of the fund in the quarter, while the Health Care and Information Technology sectors detracted. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its first-quarter 2025 investor letter, Alger Small Cap Focus Fund highlighted stocks such as Agilysys, Inc. (NASDAQ:AGYS). Agilysys, Inc. (NASDAQ:AGYS) develops and markets software-enabled solutions and services to the hospitality industry. The one-month return of Agilysys, Inc. (NASDAQ:AGYS) was -7.51%, and its shares lost 15.05% of their value over the last 52 weeks. On April 17, 2025, Agilysys, Inc. (NASDAQ:AGYS) stock closed at $69.45 per share with a market capitalization of $1.942 billion. Alger Small Cap Focus Fund stated the following regarding Agilysys, Inc. (NASDAQ:AGYS) in its Q1 2025 investor letter: "Agilysys, Inc. (NASDAQ:AGYS) provides innovative software solutions for the hospitality industry, including point-of-sale (POS) systems, payment gateways, reservation and table management, guest offers management, property management, inventory and procurement, analytics, document management, and mobile and wireless services. During the quarter, shares detracted from performance after the company reported lower-than-expected fiscal third quarter revenues. The revenue shortfall was primarily due to weaker-than-expected POS software sales, particularly within the Managed Food Service segment, and softer international sales. As a result, management lowered their full-year revenue guidance, citing near-term challenges associated with transitioning their POS product to a new version." An expert IT engineer demonstrating a new software solution to hotel managers in a boardroom. Agilysys, Inc. (NASDAQ:AGYS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Agilysys, Inc. (NASDAQ:AGYS) at the end of the fourth quarter which was 20 in the previous quarter. In the third quarter of fiscal 2025, Agilysys, Inc. (NASDAQ:AGYS) reported a record revenue of $69.6 million, reflecting an increase of 14.9% from prior year's comparable quarter. While we acknowledge the potential of Agilysys, Inc. (NASDAQ:AGYS) 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 covered Agilysys, Inc. (NASDAQ:AGYS) and shared the list of best cruise stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q1 2025 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.
Yahoo
19-04-2025
- Business
- Yahoo
Here's Why Investors Rotated Away from Xometry (XMTR)
Fred Alger Management, an investment management company, released its 'Alger Small Cap Focus Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. Changing trade, monetary, and fiscal policies increased volatility in US stocks. The emergence of artificial intelligence (AI) models from China added to the uncertainty. Against this backdrop, the class A shares of the fund underperformed the Russell 2000 Growth Index. The Communication Services and Energy sectors contributed to the relative performance of the fund in the quarter, while the Health Care and Information Technology sectors detracted. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its first-quarter 2025 investor letter, Alger Small Cap Focus Fund highlighted stocks such as Xometry, Inc. (NASDAQ:XMTR). Xometry, Inc. (NASDAQ:XMTR) is an AI powered online marketplace that helps buyers to source custom-manufactured parts and assemblies. The one-month return of Xometry, Inc. (NASDAQ:XMTR) was -14.01%, and its shares gained 37.32% of their value over the last 52 weeks. On April 17, 2025, Xometry, Inc. (NASDAQ:XMTR) stock closed at $22.04 per share with a market capitalization of $1.109 billion. Alger Small Cap Focus Fund stated the following regarding Xometry, Inc. (NASDAQ:XMTR) in its Q1 2025 investor letter: "Xometry, Inc.'s (NASDAQ:XMTR) AI-enabled technology platform is powered by proprietary machine learning algorithms, resulting in a sophisticated marketplace for manufacturing. Although the company reported strong fiscal fourth-quarter results that exceeded analyst estimates, shares fell after management guided to a modest loss for fiscal 2025 on an earnings-before-interest taxes-depreciation-and-amortization (EBITDA) basis. Additionally, we believe shares detracted from performance amid a broader sell-off affecting high-growth, unprofitable companies, as investors rotated away from stocks that performed strongly in 2024. Additionally, the company secured several new cloud contracts, including five with major insurers, underscoring strong market demand for its offerings. Given the strong operating results, shares contributed to performance during the quarter." A machinist operating a CNC machine in a well-lit facility, scrutinizing the quality of a part. Xometry, Inc. (NASDAQ:XMTR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held Xometry, Inc. (NASDAQ:XMTR) at the end of the fourth quarter which was 7 in the previous quarter. While we acknowledge the potential of Xometry, Inc. (NASDAQ:XMTR) 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 covered Xometry, Inc. (NASDAQ:XMTR) and shared the list of best 3D printing and additive manufacturing stocks to buy. In Q4 2024, Xometry, Inc. (NASDAQ:XMTR) contributed to Alger Small Cap Growth Fund's performance after reporting strong results. In addition, please check out our hedge fund investor letters Q1 2025 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. Sign in to access your portfolio
Yahoo
19-04-2025
- Business
- Yahoo
Guidewire Software (GWRE) Surged on Strong Quarterly Results
Fred Alger Management, an investment management company, released its 'Alger Small Cap Focus Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. Changing trade, monetary, and fiscal policies increased volatility in US stocks. The emergence of artificial intelligence (AI) models from China added to the uncertainty. Against this backdrop, the class A shares of the fund underperformed the Russell 2000 Growth Index. The Communication Services and Energy sectors contributed to the relative performance of the fund in the quarter, while the Health Care and Information Technology sectors detracted. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its first-quarter 2025 investor letter, Alger Small Cap Focus Fund highlighted stocks such as Guidewire Software, Inc. (NYSE:GWRE). Guidewire Software, Inc. (NYSE:GWRE) offers a platform for property and casualty (P&C) insurance companies. The one-month return of Guidewire Software, Inc. (NYSE:GWRE) was -1.10%, and its shares gained 77.32% of their value over the last 52 weeks. On April 17, 2025, Guidewire Software, Inc. (NYSE:GWRE) stock closed at $191.33 per share with a market capitalization of $16.049 billion. Alger Small Cap Focus Fund stated the following regarding Guidewire Software, Inc. (NYSE:GWRE) in its Q1 2025 investor letter: "Guidewire Software, Inc. (NYSE:GWRE) is the market leader in providing SaaS and software solutions for the property and casualty (PnC) insurance segment, serving major customers throughout the industry. The company offers a comprehensive suite of solutions covering policy, billing, and claims, and is recognized as the most advanced cloud technology provider among its competitors. We believe that new customer adoption of cloud solutions, combined with the ongoing migration of existing clients to the cloud, represents a key long term growth driver, positioning the company for continued cross selling and upselling opportunities. During the quarter, Guidewire reported strong fiscal second-quarter results, driven by better than-expected growth in annual recurring revenue (ARR). • Xometry is a leading two-sided marketplace for on-demand manufacturing services. The company provides real-time access to global manufacturing demand and capacity, with sourcing and pricing available across a network of buyers and sellers. In our view, this marketplace enables buyers (e.g., engineers and product designers) to efficiently source manufacturing processes and sellers of manufacturing services to grow their businesses." An insurance adjuster reviewing images and paperwork to process a claim. Guidewire Software, Inc. (NYSE:GWRE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held Guidewire Software, Inc. (NYSE:GWRE) at the end of the fourth quarter which was 51 in the previous quarter. While we acknowledge the potential of Guidewire Software, Inc. (NYSE:GWRE) 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 covered Guidewire Software, Inc. (NYSE:GWRE) and shared Wasatch U.S. Select Strategy's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2025 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. Sign in to access your portfolio
