Fred Alger Management, an investment management company, released its “Alger Small Cap Growth Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities rose in the third quarter, driven by a dovish monetary policy shift from the Federal Reserve (Fed), and optimism around a soft economic landing. Class A shares of the fund underperformed the Russell 2000 Growth Index in the quarter. The Health Care and Consumer Discretionary sectors positively influenced performance, while Financials and Information Technology negatively impacted. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Alger Small Cap Growth Fund highlighted stocks like Alphatec Holdings, Inc. (NASDAQ:ATEC) in the third quarter 2024 investor letter. Alphatec Holdings, Inc. (NASDAQ:ATEC) is a medical technology company, that designs, develops, and advances technologies for the surgical treatment of spinal disorders. The one-month return of Alphatec Holdings, Inc. (NASDAQ:ATEC) was 25.36%, and its shares lost 17.80% of their value over the last 52 weeks. On November 29, 2024, Alphatec Holdings, Inc. (NASDAQ:ATEC) stock closed at $10.48 per share with a market capitalization of $1.486 billion.
Alger Small Cap Growth Fund stated the following regarding Alphatec Holdings, Inc. (NASDAQ:ATEC) in its Q3 2024 investor letter:
“Alphatec Holdings, Inc. (NASDAQ:ATEC) is a leading provider of innovative spine technology solutions, specializing in the treatment of spinal disorders. The company is focused on portfolio innovation, optimizing its sales channels, and expanding its market share within the established $6 billion U.S. spine market. Unlike larger competitors, Alphatech’s growth is driven by capturing market share rather than relying on overall market growth. During the quarter, the company reported better-than-expected fiscal second-quarter revenues. However, shares detracted from performance after management raised its cash burn guidance more than anticipated, raising concerns about the potential need for near-term cash financing.”
A medical professional guiding a robotic tool placing pedicle screws in a patient’s spinal column.
Alphatec Holdings, Inc. (NASDAQ:ATEC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Alphatec Holdings, Inc. (NASDAQ:ATEC) at the end of the third quarter which was 26 in the previous quarter. In the third quarter, Alphatec Holdings, Inc. (NASDAQ:ATEC) reported $151 million in total revenue, represents 27% year-over-year growth. While we acknowledge the potential of Alphatec Holdings, Inc. (NASDAQ:ATEC) 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 Q3 2024 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.