Fred Alger Management, an investment management company, released its “Alger Focus Equity Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. US markets performed strongly in Q1, with the S&P Index up 10.56%. Class A shares of the fund outperformed the Russell 1000 Growth Index in the quarter. Information Technology and industrial sectors boosted the relative performance while financials and consumer staples weighed down the fund’s performance in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Alger Focus Equity Fund highlighted stocks like NVIDIA Corporation (NASDAQ:NVDA), in the first quarter 2024 investor letter. NVIDIA Corporation (NASDAQ:NVDA) offers graphics and compute and networking solutions. The one-month return of NVIDIA Corporation (NASDAQ:NVDA) was 4.77%, and its shares gained 203.14% of their value over the last 52 weeks. On June 26, 2024, NVIDIA Corporation (NASDAQ:NVDA) stock closed at $128.28 per share with a market capitalization of $3.155 trillion.
Alger Focus Equity Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming. PCs, data centers, virtual reality and high- performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super-computing parallel processing techniques for solving complex computational problems. Simply put, Nvidia’s computational power is a critical enabler of Al and therefore critical to Al adoption, in our view. During the quarter, the company reported solid fiscal fourth quarter results above analyst expectations, driven by strong demand from data centers. Further, large cloud service providers contributed over 50% of revenue and inference tasks-using trained Al models on new data-accounted for over 40% of data center revenue. Management also raised their fiscal first quarter guidance noting that demand is estimated to outstrip supply over the next year. We continue to believe the company is well positioned to potentially benefit from the growing Al data center workloads, which are driving demand for the increased interconnections and fully accelerated software stacks, thereby enabling leading application performance and fast result times.”
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
NVIDIA Corporation (NASDAQ:NVDA) is in 5th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 186 hedge fund portfolios held NVIDIA Corporation (NASDAQ:NVDA) at the end of the first quarter which was 173 in the previous quarter. NVIDIA Corporation (NASDAQ:NVDA) reported another record quarter in Q1 with $26 billion in revenues, representing a 262% year-over-year increase. 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.
We discussed NVIDIA Corporation (NASDAQ:NVDA) in another article and shared Billionaire Philippe Laffont’s “Mostly AI” stock picks. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
