Fred Alger Management, an investment management company, released its “Alger Mid Cap Focus Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equity markets were favorable in the third quarter of 2024 driven by a dovish monetary policy shift by the Federal Reserve (Fed) and anticipation of a soft economic landing. At the same time, Class A shares of the fund underperformed the Russell Midcap Growth Index in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Alger Mid Cap Focus Fund highlighted stocks like HEICO Corporation (NYSE:HEI) in the Q3 2024 investor letter. HEICO Corporation (NYSE:HEI) engages in the design and manufacturing of aerospace, defense, and electronic-related products and services. The one-month return of HEICO Corporation (NYSE:HEI) was 7.02%, and its shares gained 57.16% of their value over the last 52 weeks. On November 19, 2024, HEICO Corporation (NYSE:HEI) stock closed at $272.78 per share with a market capitalization of $32.753 billion.
Alger Mid Cap Focus Fund stated the following regarding HEICO Corporation (NYSE:HEI) in its Q3 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, shares contributed to performance, where the company delivered better-than-expected fiscal third quarter earnings, driven by strong growth in the commercial aerospace aftermarket, along with an acceleration in their defense segment and a pickup in the commercial aerospace original equipment manufacturing (OEM) business.”
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HEICO Corporation (NYSE:HEI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held HEICO Corporation (NYSE:HEI) at the end of the third quarter which was 53 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 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.