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 GitLab Inc. (NASDAQ:GTLB) in the first quarter 2023 investor letter. Headquartered in San Francisco, California, GitLab Inc. (NASDAQ:GTLB) provides software for software development. On May 8, 2023, GitLab Inc. (NASDAQ:GTLB) stock closed at $30.21 per share. One-month return of GitLab Inc. (NASDAQ:GTLB) was -8.70%, and its shares lost 17.82% of their value over the last 52 weeks. GitLab Inc. (NASDAQ:GTLB) has a market capitalization of $4.586 billion.
Alger Small Cap Focus Fund made the following comment about GitLab Inc. (NASDAQ:GTLB) in its Q1 2023 investor letter:
“GitLab Inc. (NASDAQ:GTLB) is a “DevOps” platform that enables organizations to develop (Dev) software quickly and efficiently while streamlining IT operations (Ops) with clear security and compliance. Its single, unified application simplifies use and ensures visibility and control over the entire DevOps lifecycle. As technology requirements change rapidly, GitLab’s robust, easy-to-install and updateable application helps organizations stay current with codes, security and compliance. While the company reported solid fiscal fourth quarter results driven by better-than-expected revenues, shares detracted from performance after management lowered their 2023 calendar year revenue guidance that was well below consensus. Management attributed the downward revision to deteriorating macroeconomic conditions, citing material signs of increased budget scrutiny, potential pipeline delays and a lower net dollar retention rate. However, the company emphasized that the downward revision was not because of product issues or intensifying competition. While operating headwinds may persist throughout the year, as per management’s conservative guidance, we believe shares reflect these headwinds. Further, we believe company fundamentals remain intact, given key performance indicators such as annual recurring revenue and pending customer contracts appear strong.”
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GitLab Inc. (NASDAQ:GTLB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held GitLab Inc. (NASDAQ:GTLB) at the end of the fourth quarter which was 40 in the previous quarter.
We discussed GitLab Inc. (NASDAQ:GTLB) in another article and shared the list of best new stocks to invest in according to hedge funds. 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.
