Fred Alger Management, an investment management company, released its “Alger Mid Cap Focus Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities experienced positive outcome largely driven by decisive U.S. presidential election outcome. Class A shares of the fund outperformed the Russell Midcap Growth Index in the quarter. The Information Technology and Industrials sectors contributed to relative performance while Financials and Utilities detracted. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Alger Mid Cap Focus Fund highlighted stocks like Palantir Technologies Inc. (NASDAQ:PLTR), in the fourth quarter 2024 investor letter. Palantir Technologies Inc. (NASDAQ:PLTR) offers software platforms for the intelligence community. The one-month return of Palantir Technologies Inc. (NASDAQ:PLTR) was -6.70%, and its shares gained 322.20% of their value over the last 52 weeks. On January 16, 2025, Palantir Technologies Inc. (NASDAQ:PLTR) stock closed at $69.24 per share with a market capitalization of $157.73 billion.
Alger Mid Cap Focus Fund stated the following regarding Palantir Technologies Inc. (NASDAQ:PLTR) in its Q4 2024 investor letter:
“Palantir Technologies Inc. (NASDAQ:PLTR) builds advanced platforms for data integration, management, and security, enabling interactive, AI-assisted analysis for its users. Its core offerings include Palantir Gotham, designed for government clients, and Palantir Foundry, tailored for commercial customers. Originally focused on U.S. intelligence agencies, Palantir has expanded into defense contracts with western governments and entered the commercial market in 2016. During the quarter, shares contributed to performance after the company reported better-than-expected fiscal third quarter operating results, along with management raising its full year 2024 revenue guidance. Management noted that the recent launch of its AI platform (AIP), which leverages generative AI to optimize business operations, has driven significant growth and investor interest. Additionally, we believe Palantir could be a key partner for the U.S. government’s new Department of Government Efficiency (DOGE), as its AI-driven platforms are ideally suited to help identify inefficiencies, allocate resources effectively, and achieve cost reductions.”
A software engineer intently typing code into a laptop with multiple screens in an office.
Palantir Technologies Inc. (NASDAQ:PLTR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Palantir Technologies Inc. (NASDAQ:PLTR) at the end of the third quarter which was 44 in the previous quarter. While we acknowledge the potential of Palantir Technologies Inc. (NASDAQ:PLTR) 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 discussed Palantir Technologies Inc. (NASDAQ:PLTR) and shared the list of AI Stocks on latest analyst ratings and News. ClearBridge Growth Strategy purchased Palantir Technologies Inc. (NASDAQ:PLTR) in Q4 2024, to benefit from the rapid development in AI technology. In addition, please check out our hedge fund investor letters Q4 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.