Alger Capital, an investment management company, released its “Alger Small Cap Focus Fund” third quarter investor letter. A copy of the same can be downloaded here. In the third quarter, the fund outperformed the Russell 2000 Growth Index. Consumer discretionary and industrial sectors contributed to the fund’s relative performance in the quarter, while healthcare and energy sectors were the major performance detractors. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Alger Capital highlighted stocks like RBC Bearings Incorporated (NYSE:RBC) in the Q3 2022 investor letter. Headquartered in Oxford, Connecticut, RBC Bearings Incorporated (NYSE:RBC) is a manufacturer of engineered precision bearings and components and it operates through Aerospace/Defense and Industrial segments. On November 7, RBC Bearings Incorporated (NYSE:RBC) stock closed at $243.72 per share. One-month return of RBC Bearings Incorporated (NYSE:RBC) was 12.46% and its shares gained 1.51% of their value over the last 52 weeks. RBC Bearings Incorporated (NYSE:RBC) has a market capitalization of $7.051 billion.
Alger Capital made the following comment about RBC Bearings Incorporated (NYSE:RBC) in its Q3 2022 investor letter:
“RBC Bearings Incorporated (NYSE:RBC) is a leading manufacturer of highly engineered precision bearings that are integral to the production and operation of most machines, aircraft and mechanical systems. These products reduce wear and tear for moving parts, facilitate proper power transmission, reduce damage and energy loss caused by friction, and control pressure and flow. RBCL focuses on highly technical, regulated and engineered bearings products for specialized markets that require sophisticated design, testing and manufacturing capabilities. In November 2021, RBC completed the acquisition of ABB’s dodge mechanical power transmission business. It is the largest acquisition in RBC’s history, and we believe it is highly transformative. the transaction has created a leading manufacturer with strong brand recognition for mission-critical, premium performance bearings and motion control products for original equipment manufacturers (OEMs) and the industrial aftermarket. The combined company has a more diversified end market, including additional industries such as food and beverage, warehousing, general machinery and the construction and mining aftermarket. The combined company also has greater aftermarket exposure, which tends to generate recurring revenues. Shares outperformed this quarter as company results indicate they are benefitting from a recovery in its commercial aerospace OEM business as aircraft production at Boeing and airbus is increasing, and demand for products remains strong. The company is also able to offset inflationary pressures on cost and has demonstrated solid operating leverage despite a challenging environment.”
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RBC Bearings Incorporated (NYSE:RBC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held RBC Bearings Incorporated (NYSE:RBC) at the end of the second quarter which was 16 in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2022 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.
