Alger, an investment management firm, published its “Alger Small Cap Focus Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. During the fourth quarter, the largest portfolio sector weightings were Health Care and Information Technology. The largest sector overweight was Health Care. The portfolio had no exposure to the Financials, Materials, Real Estate, or Utilities sectors. Class A shares of the Alger Small Cap Focus Fund underperformed the Russell 2000 Growth Index during the fourth quarter of 2021. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Alger Small Cap Focus Fund, in its Q4 2021 investor letter, mentioned Heska Corporation (NASDAQ: HSKA) and discussed its stance on the firm. Heska Corporation is a Loveland, Colorado-based advanced veterinary diagnostic and specialty products and solutions provider with a $1.3 billion market capitalization. HSKA delivered a -29.48% return since the beginning of the year, while its 12-month returns are down by -34.58%. The stock closed at $128.69 per share on February 11, 2022.
Here is what Alger Small Cap Focus Fund has to say about Heska Corporation in its Q4 2021 investor letter:
“Heska Corporation sells diagnostic tools and specialty products to the animal health market. Specifically, Heska sells blood testing and supplies, digital imaging products, software and single use products primarily for cats and dogs. Heska also offers private label vaccines and pharmaceutical production primarily for cattle and other small mammals.
Shares of Heska underperformed in the final three months of 2021 due to weaker-than-expected third quarter results. Heska saw some of its revenue in contract manufacturing and digital radiography delayed by several weeks due to supply chain disruptions of some key raw materials. In addition, Heska’s diagnostic consumables were also somewhat weaker than expected. We believe the weakness in third results is temporary, including some revenue just being deferred to the fourth quarter due to the supply chain disruptions. The long-term outlook for Heska’s business remains strong, supported by its recent strategic acquisition of VetZ, which provides veterinarian practice management software and digital X-ray systems. Heska is also positioned to benefit from its launch of its Element AIM urine and fecal testing instrument.”
Photo by Karlo Tottoc on Unsplash
Our calculations show that Heska Corporation (NASDAQ: HSKA) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. HSKA was in 22 hedge fund portfolios at the end of the third quarter of 2021, compared to 20 funds in the previous quarter. Heska Corporation (NASDAQ: HSKA) delivered a -29.44% return in the past 3 months.
In August 2021, we also shared another hedge fund’s views on HSKA in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
