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 Monolithic Power Systems, Inc. (NASDAQ:MPWR), in the fourth quarter 2024 investor letter. Monolithic Power Systems, Inc. (NASDAQ:MPWR) is a semiconductor-based power electronics solutions provider. The one-month return of Monolithic Power Systems, Inc. (NASDAQ:MPWR) was 1.27%, and its shares lost 2.33% of their value over the last 52 weeks. On January 16, 2025, Monolithic Power Systems, Inc. (NASDAQ:MPWR) stock closed at $596.66 per share with a market capitalization of $29.11 billion.
Alger Mid Cap Focus Fund stated the following regarding Monolithic Power Systems, Inc. (NASDAQ:MPWR) in its Q4 2024 investor letter:
“Monolithic Power Systems, Inc. (NASDAQ:MPWR) designs high-performance power management solutions, leveraging its expertise in analog design, proprietary process technologies, and system-level applications. Its fabless manufacturing model enables nimble innovation and scalability without requiring the high volumes typical of peers with internal manufacturing. The company serves diverse end markets, including enterprise data, where it has been the sole supplier of power management integrated circuits (ICs) for Nvidia’s AI chips since early 2023, driving significant growth. However, recent reports of potential share loss on Nvidia’s Blackwell platform due to technical issues, which management refutes, have raised some concerns. While management acknowledges the eventual introduction of additional suppliers, we believe these fears are overblown.”
An engineer examining a DC to DC integrated circuit board, looking for any flaws.
Monolithic Power Systems, Inc. (NASDAQ:MPWR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Monolithic Power Systems, Inc. (NASDAQ:MPWR) at the end of the third quarter which was 35 in the previous quarter. In the third quarter, Monolithic Power Systems, Inc. (NASDAQ:MPWR) generated $620.1 million in revenues, 22% higher than revenue in the second quarter of 2024. While we acknowledge the potential of Monolithic Power Systems, Inc. (NASDAQ:MPWR) 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 Monolithic Power Systems, Inc. (NASDAQ:MPWR) and shared the list of stocks that will make you rich in 2025. 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.