Here’s Why Everbridge (EVBG) Landed in Alger’s Top Detractors List

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 Everbridge, Inc. (NASDAQ: EVBG) and discussed its stance on the firm. Everbridge, Inc. is a Burlington, Massachusetts-based software company with a $2.0 billion market capitalization. EVBG delivered a -23.82% return since the beginning of the year, while its 12-month returns are down by -63.52%. The stock closed at $51.29 per share on February 11, 2022.

Here is what Alger Small Cap Focus Fund has to say about Everbridge, Inc. in its Q4 2021 investor letter:

“Everbridge is a global software company founded post 9/11 that provides critical communications and enterprise safety applications that enable customers to automate and accelerate the process of keeping people safe and businesses running during critical events. Over 5,300 global customers rely on the company’s Critical Event Management Platform to quickly and reliably aggregate and assess threat data, locate people at risk and execute threat response plans. The stock underperformed after the company reported that billing growth decelerated during the third quarter. In addition, the company announced a departure of CEO David Meredith and provided lower than expected fiscal year 2022 guidance on December 9. We believe Everbridge continues to be a leader in the large and underpenetrated enterprise safety application market.”

Photo by Danial Igdery on Unsplash

Our calculations show that Everbridge, Inc. (NASDAQ: EVBG) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. EVBG was in 23 hedge fund portfolios at the end of the third quarter of 2021, compared to 23 funds in the previous quarter. Everbridge, Inc. (NASDAQ: EVBG) delivered a -61.36% return in the past 3 months.

In January 2022, we also shared another hedge fund’s views on EVBG 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.