Fred Alger Management, an investment management company, released its “Alger Mid Cap Growth Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities experienced a robust rally in Q1, with the S&P Index finishing up 10.56%. The fund underperformed the Russell Midcap Growth Index in the quarter. Industrials and healthcare sectors were the leading contributors while financials and utilities detracted. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Alger Mid Cap Growth Fund highlighted stocks like Globant S.A. (NYSE:GLOB), in the first quarter 2024 investor letter. Globant S.A. (NYSE:GLOB) is a Luxembourg-based technology services company. The one-month return of Globant S.A. (NYSE:GLOB) was -11.12%, and its shares lost 13.66% of their value over the last 52 weeks. On June 10, 2024, Globant S.A. (NYSE:GLOB) stock closed at 154.98 per share with a market capitalization of $6.805 billion.
Alger Mid Cap Growth Fund stated the following regarding Globant S.A. (NYSE:GLOB) in its first quarter 2024 investor letter:
“Globant S.A. (NYSE:GLOB) is a worldwide IT services company with a digital-first approach, offering digital strategy, design, and engineering services. Its service delivery model is largely concentrated on Latin America, serving a range of blue-chip clients in the media and entertainment industry. During the quarter, the company delivered strong fiscal fourth quarter results, driven by strong demand for digital enterprise transformation across verticals. However, shares detracted from performance after management gave their fiscal first quarter and 2024 guidance that came on lower than analyst estimates. The company cited the recent devaluation in the Argentine Peso as a near-term headwind but has noticed an increased number of client conversations about growth-oriented initiatives.”
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Globant S.A. (NYSE:GLOB) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Globant S.A. (NYSE:GLOB) at the end of the first quarter which was 26 in the previous quarter. Globant S.A. (NYSE:GLOB) generated $571.1 million in revenues in the first quarter, a 20.9% increase year-over-year. While we acknowledge the potential of Globant S.A. (NYSE:GLOB) 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 Globant S.A. (NYSE:GLOB) and shared Harding Loevner Global Equity Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 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.
