Fred Alger Management, an investment management company, released its “Alger Small Cap Growth Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities rose during the second quarter of 2024, with the S&P 500 up 4.28%. Additionally, large-cap growth stocks saw significant gains in the quarter, while smaller-cap, especially value stocks, lagged. Class A shares of the fund underperformed the Russell 2000 Growth Index in the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Alger Small Cap Growth Fund highlighted stocks like HEICO Corporation (NYSE:HEI) in the second quarter 2024 investor letter. HEICO Corporation (NYSE:HEI) designs, and manufactures aerospace, defense, and electronic-related products and services. The one-month return of HEICO Corporation (NYSE:HEI) was 5.73%, and its shares gained 45.13% of their value over the last three months. On August 20, 2024, HEICO Corporation (NYSE:HEI) stock closed at $240.12 per share with a market capitalization of $28.87 billion.
Alger Small Cap Growth Fund stated the following regarding HEICO Corporation (NYSE:HEI) in its Q2 2024 investor letter:
“HEICO Corporation (NYSE:HEI) is a leading manufacturer of Federal Aviation Administration (FAA) approved jet engine and aircraft component replacement parts. We believe the company is well-positioned to benefit from the steady aging of the global commercial aerospace fleet, resulting in increased consumption of aftermarket parts. Additionally, ongoing production issues from two major aircraft manufacturers have reduced the projected new plane deliveries, further supporting our view that the average age of the global fleet is likely to remain elevated over the next few years. During the quarter, HEICO’s shares contributed to performance, where the company delivered strong quarterly results with revenues and earnings beating analyst estimates along with continued execution on strategic tuck-in mergers and acquisitions.”
A skilled machinist inspecting a precision bearing for a aerospace/defense application.
HEICO Corporation (NYSE:HEI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held HEICO Corporation (NYSE:HEI) at the end of the second quarter which was 52 in the previous quarter. While we acknowledge the potential of HEICO Corporation (NYSE:HEI) 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 addition, please check out our hedge fund investor letters Q2 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.
