Alger Capital, an investment management company, released its “Alger Small Cap Focus Fund” fourth quarter investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund underperformed the Russell 2000 Growth Index. The Energy and Communication Services sectors contributed to the fund’s relative performance in the quarter, while Consumer Discretionary and Information Technology detracted from performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Alger Small Cap Focus Fund highlighted stocks like ChampionX Corporation (NASDAQ:CHX) in the Q4 2022 investor letter. Headquartered in The Woodlands, Texas, ChampionX Corporation (NASDAQ:CHX) is an energy solutions provider. On March 15, 2023, ChampionX Corporation (NASDAQ:CHX) stock closed at $25.61 per share. One-month return of ChampionX Corporation (NASDAQ:CHX) was -19.87%, and its shares gained 3.60% of their value over the last 52 weeks. ChampionX Corporation (NASDAQ:CHX) has a market capitalization of $5.087 billion.
Alger Small Cap Focus Fund made the following comment about ChampionX Corporation (NASDAQ:CHX) in its Q4 2022 investor letter:
“ChampionX Corporation (NASDAQ:CHX) provides equipment and services that assist in the drilling. completion and production phases of well drilling. The company also provides production and reservoir chemicals, along with highly engineered equipment and technologies, such as artificial lift and drill bit inserts, for the oil and gas industry. Notably, ChampionX has a global footprint and favorable product mix, where its chemicals and artificial lift businesses are tied to the production phase of the life of a well. We believe this produces lower earnings variability and potentially stronger operating results. Shares outperformed during the quarter as the company reported strong fiscal third quarter results and gave better-than-expected fourth quarter guidance. Moreover, the company expanded its capital return program by committing to return 60% of its free cash flow (FCF) to shareholders through opportunistic buybacks. Management also raised its share buyback authorization program from $250m to $750m over next 2 to 3 years. We believe the company is well positioned to deliver strong revenue growth, driven by their production focused Performance Chemicals business, which may lead to margin improvement and FCF generation.”
ChampionX Corporation (NASDAQ:CHX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held ChampionX Corporation (NASDAQ:CHX) at the end of the fourth quarter which was 19 in the previous quarter.
We discussed ChampionX Corporation (NASDAQ:CHX) in another article and shared the list of companies that just started paying dividends. In addition, please check out our hedge fund investor letters Q4 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.
