Alger, an investment management firm, published its “Alger Spectra Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. During the fourth quarter of 2021, the largest portfolio sector weightings were Information Technology and Consumer Discretionary. The Health Care sector was the largest sector overweight and Consumer Staples was the largest sector underweight. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Alger Spectra Fund, in its Q4 2021 investor letter, mentioned Marqeta, Inc. (NASDAQ: MQ) and discussed its stance on the firm. Marqeta, Inc. is an Oakland, California-based IT service management company with a $6.0 billion market capitalization. MQ delivered a -37.45% return since the beginning of the year and it closed at $11.20 per share on January 25, 2022.
Here is what Alger Spectra Fund has to say about Marqeta, Inc. in its Q4 2021 investor letter:
“Margeta facilitates the implementation of digital payment technologies. It is a Positive Dynamic Change beneficiary in the digital payments industry. We believe as more commerce is conducted digitally, the digitization and transformation of the payments ecosystem is needed, which Margeta seeks to address through its modern payment card issuing platform, providing infrastructure and tools for building configurable payment cards. Margeta offers issuer processor services and acts as a card program manager. Its platform creates customized payment cards that provide innovative payment experiences for their clients’ customers and end users.
Marqeta has emerged as a card issuing platform category leader in many disruptive verticals, including on-demand delivery, alternative lending, expense management, disbursement, digital remittances, and digital banks. Margeta’s solutions are even sought out by large financial institutions to improve their existing offerings and stay competitive with technology-focused new market entrants. Margeta detracted from performance despite achieving strong revenue growth with higher gross profitability and an expanded customer base in the third quarter. We believe the expiration of a lock up period and the company facing tough comparisons resulting from COVID-19 stimulus payments having boosted consumer spending contributed to the underperformance of Marqeta shares. Additionally, the still small footprints within the Margeta revenue base of crypto, truck brokerage and business-to-business clients may take time to scale.”
Photo by Danial Igdery on Unsplash
Our calculations show that Marqeta, Inc. (NASDAQ: MQ) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. MQ was in 20 hedge fund portfolios at the end of the third quarter of 2021, compared to 35 funds in the previous quarter. Marqeta, Inc. (NASDAQ: MQ) delivered a -65.11% return in the past 3 months.
In November 2021, we also shared another hedge fund’s views on MQ in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
