Fred Alger Management, an investment management company, released its “Alger Weatherbie Specialized Growth Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities performed well in the third quarter of 2024, with the S&P 500 rising 5.89%. Utilities and Real Estate sectors outperformed relative to the index while the Energy and Information Technology sectors detracted. Against this backdrop, Class A shares of the fund underperformed the Russell 2500 Growth Index in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Alger Weatherbie Specialized Growth Fund highlighted stocks like Progyny, Inc. (NASDAQ:PGNY), in the third quarter 2024 investor letter. Progyny, Inc. (NASDAQ:PGNY) is a benefits management company that focuses on fertility and family-building benefits solutions. The one-month return of Progyny, Inc. (NASDAQ:PGNY) was 0.66%, and its shares lost 56.66% of their value over the last 52 weeks. On November 29, 2024, Progyny, Inc. (NASDAQ:PGNY) stock closed at $15.57 per share with a market capitalization of $1.302 billion.
Alger Weatherbie Specialized Growth Fund stated the following regarding Progyny, Inc. (NASDAQ:PGNY) in its Q3 2024 investor letter:
“Progyny, Inc. (NASDAQ:PGNY) is a leading benefits management company specializing in fertility and family building solutions. It serves a significant but underserved market through unique plan designs, coordinated clinical care, and a carefully selected provider network, resulting in superior clinical outcomes and cost savings. Infertility is a widespread issue, affecting one in eight U.S. couples, according to the CDC. Earlier this year, Progyny faced headwinds due to media attention on the Alabama Supreme Court ruling on in vitro fertilization (IVF), which was later overturned by the state legislature and no longer impacts the company. However, on September 19, Progyny announced the loss of a major client, believed to be its largest account, which caused a sharp drop in its share price. We view this loss as an isolated event, and we believe the company continues to deliver excellent clinical outcomes and provide value to patients, providers, and employers.”
A close up of a hand, fingers wrapped around a fertility specialist syringe.
Progyny, Inc. (NASDAQ:PGNY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Progyny, Inc. (NASDAQ:PGNY) at the end of the third quarter which was 28 in the previous quarter. The third quarter revenue of Progyny, Inc. (NASDAQ:PGNY) grew 2% year-over-year to $286.6 million. While we acknowledge the potential of Progyny, Inc. (NASDAQ:PGNY) 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 Progyny, Inc. (NASDAQ:PGNY) and shared Meridian Hedged Equity Fund’s views on the company. Progyny, Inc. (NASDAQ:PGNY) detracted from Alger Weatherbie Specialized Growth Fund’s performance last quarter due to macroeconomic concerns and adverse court rulings on IVF. In addition, please check out our hedge fund investor letters Q3 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.