Fred Alger Management, an investment management company, released its “Alger Small Cap Focus Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund underperformed the Russell 2000 Growth Index. The Health Care and Energy sectors contributed to the fund’s relative performance in the quarter, while Information Technology and Industrials detracted from performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Alger Small Cap Focus Fund highlighted stocks like Clearwater Analytics Holdings, Inc. (NYSE:CWAN) in the first quarter 2023 investor letter. Headquartered in Boise, Idaho, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) provides web-based solutions for investment data aggregation, reconciliation, accounting, and reporting services. On May 8, 2023, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) stock closed at $14.66 per share. One-month return of Clearwater Analytics Holdings, Inc. (NYSE:CWAN) was -10.61%, and its shares lost 9.17% of their value over the last 52 weeks. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) has a market capitalization of $4.375 billion.
Alger Small Cap Focus Fund made the following comment about Clearwater Analytics Holdings, Inc. (NYSE:CWAN) in its Q1 2023 investor letter:
“Clearwater Analytics Holdings, Inc. (NYSE:CWAN) offers investment accounting, reporting, performance measurement, compliance monitoring, and risk analytics solutions for asset managers, insurance companies, and large corporations. Founded in 2004 and headquartered in Boise, Idaho, the company’s platform aggregates and normalizes data on over $5.6 trillion of global invested assets for over 1,000 clients. Clearwater’s cloud-native solution modernizes an industry long dominated by high-cost, difficult-to-use legacy technologies and processes that lack data integrity, traceability, and require substantial manual intervention. We believe Clearwater’s core end markets are in the early stages of a multi-year technology upgrade cycle, driven by investments in diverse financial instruments for yield and cost optimization efforts. Recently, the company transitioned its pricing model from a fee-based to a subscription-based model, enhancing revenue predictability and mitigating risk during economic downturns. Clearwater’s 98% gross retention and rapid pricing model transition underscore the solution’s mission critical nature, in our view. While shares detracted from performance due to concerns around end market exposure to financial institutions (e.g., regional banks), we have confirmed that Clearwater has minimal exposure to distressed financial institutions such as SVB Financial Group, indicating that company fundamentals remain intact, in our view.”
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Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held Clearwater Analytics Holdings, Inc. (NYSE:CWAN) at the end of the fourth quarter which was 6 in the previous quarter.
We discussed Clearwater Analytics Holdings, Inc. (NYSE:CWAN) in another article and shared Artisan Partners’ views on the company. In addition, please check out our hedge fund investor letters Q1 2023 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.
