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 StepStone Group LP (NASDAQ:STEP) in the third quarter 2024 investor letter. StepStone Group LP (NASDAQ:STEP) is private equity and venture capital firm with a market capitalization of $7.675 billion. The one-month return of StepStone Group Inc. (NASDAQ:STEP) was 9.40%, and its shares gained 153.62% of their value over the last 52 weeks. On December 2, 2024, StepStone Group Inc. (NASDAQ:STEP) stock closed at $64.80 per share.
Alger Weatherbie Specialized Growth Fund stated the following regarding StepStone Group Inc. (NASDAQ:STEP) in its Q3 2024 investor letter:
“StepStone Group Inc. (NASDAQ:STEP) is a private markets investment firm that focuses on providing customized investment solutions and advisory and data services to clients. The company serves public and private defined benefit and defined contribution pension funds, sovereign wealth funds, insurance companies, prominent endowments, foundations, family offices and private wealth clients, which include high-net-worth and mass affluent individuals. During the quarter, shares contributed to performance following strong fiscal first quarter results, with revenues and earnings beating analyst estimates. Better-than-expected revenues were largely attributed to higher realized carried interest and core management fees, along with strong fundraising activity.”
A confident businessman in a sharp suit and tie overlooking a financial trading floor.
StepStone Group Inc. (NASDAQ:STEP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held StepStone Group Inc. (NASDAQ:STEP) at the end of the third quarter which was 15 in the previous quarter. While we acknowledge the potential of StepStone Group Inc. (NASDAQ:STEP) 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 StepStone Group Inc. (NASDAQ:STEP) and shared Alger Weatherbie Specialized Growth Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.