Alger, an investment management firm, published its “Alger Spectra Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. During the first quarter of 2021, the largest portfolio sector weightings were Information Technology and Consumer Discretionary. Class A shares of the Alger Spectra Fund underperformed the Russell 3000 Growth Index during the first quarter of 2021. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Alger Spectra Fund, in their Q1 2021 investor letter, mentioned Stratasys Ltd. (NASDAQ: SSYS) and shared their insights on the company. Stratasys Ltd. is a Rehovot, Israel-based 3D printers and 3D production systems manufacturer that currently has a $1.3 billion market capitalization. Since the beginning of the year, SSYS delivered a 2.27% return, extending its 12-month gains to 23.85%. As of April 19, 2021, the stock closed at $21.19 per share.
Here is what Alger Spectra Fund has to say about Stratasys Ltd. in their Q1 2021 investor letter:
“Short position Stratasys also contributed to performance. Stratasys is one of the larger 3D printing companies. While additive manufacturing (3D printing) is a revolutionary concept, it has only seen its primary adoption for manufacturing prototypes and test parts, not high-volume end-use parts. Unfortunately for incumbents like Stratasys, additive manufacturing has continued to attract capital and dozens of new entrants have emerged with new technologies targeting specific applications. Industry pioneers like Stratasys have seen key patents expire and have lost market share to new competition. As a result of these factors, Stratasys has not grown for five years. Some industry participants believe that Stratasys’ plastic extrusion technology is simply too slow to be an acceptable solution for higher volume manufacturing. The short position contributed to portfolio returns when Stratasys’ shares declined due to year-over-year revenue contraction, continuing market share losses, a talent exodus, the issuance of new shares via a secondary offering, and no significant progress on developing new opportunities in promising additive verticals like metal and dental.”
Pixabay/Public Domain
Our calculations show that Stratasys Ltd. (NASDAQ: SSYS) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Stratasys Ltd. was in 16 hedge fund portfolios. SSYS delivered a -33.47% return in the past 3 months.
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Disclosure: None. This article is originally published at Insider Monkey.
