Fred Alger Management, an investment management company, released its “Alger Small Cap Growth Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities rose in the fourth quarter, driven by decisive U.S. presidential election outcome. Class A shares of the fund outperformed the Russell 2000 Growth Index in the quarter. The Information Technology and Health Care sectors positively influenced performance, while Consumer Discretionary and Financials 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 CareDx, Inc (NASDAQ:CDNA) in the fourth quarter 2024 investor letter. Incorporated in 1998, CareDx, Inc (NASDAQ:CDNA) is involved in discovering, developing, and commercializing diagnostic solutions for transplant patients. The one-month return of CareDx, Inc (NASDAQ:CDNA) was 5.32%, and its shares gained 140.92% of their value over the last 52 weeks. On January 27, 2024, CareDx, Inc (NASDAQ:CDNA) stock closed at $22.55 per share with a market capitalization of $1.209 billion.
Alger Small Cap Growth Fund stated the following regarding CareDx, Inc (NASDAQ:CDNA) in its Q4 2024 investor letter:
“CareDx, Inc (NASDAQ:CDNA) is a specialty laboratory focused on developing and commercializing high-value diagnostic solutions for transplant patients. The company offers testing services, products, and digital healthcare solutions that support both pre- and post-transplant care. CareDx’s tests are used for post-transplant surveillance in heart, kidney, and lung transplants to detect signs of acute organ rejection. During the quarter, shares detracted from performance after the company preannounced slightly disappointing fiscal third-quarter results at their 2024 Investor Day. While revenue increased 23% year-over-year, it fell short of investor expectations. Following the Investor Day, management modestly raised full-year 2024 revenue guidance and outlined 2025 growth targets in the high teens (excluding prior-period collections), aligning with their goal of a 15% compounded annual growth rate by 2027. Additionally, the company announced plans to expand its sales, marketing, and billing teams, reflecting confidence in scaling go-to-market efforts and enhancing revenue cycle management.”
A healthcare professional in front of a console, monitoring the progress of a transplant patient.
CareDx, Inc (NASDAQ:CDNA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held CareDx, Inc (NASDAQ:CDNA) at the end of the third quarter which was 17 in the previous quarter. CareDx, Inc (NASDAQ:CDNA) reported revenue of $82.9 million in the third quarter, representing 23% year-over-year growth. While we acknowledge the potential of CareDx, Inc (NASDAQ:CDNA) 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 CareDx, Inc (NASDAQ:CDNA) and shared Baron Discovery Fund’s views on the company. CareDx, Inc (NASDAQ:CDNA) contributed to the performance of Alger Small Cap Growth Fund during Q3 2024 after reporting strong results. 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.