Fred Alger Management, an investment management company, released its “Alger Mid Cap Focus Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities experienced positive outcome largely driven by decisive U.S. presidential election outcome. Class A shares of the fund outperformed the Russell Midcap Growth Index in the quarter. The Information Technology and Industrials sectors contributed to relative performance while Financials and Utilities detracted. 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 Q4 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 -0.89%, and its shares gained 32.69% of their value over the last 52 weeks. On January 16, 2025, HEICO Corporation (NYSE:HEI) stock closed at $235.58 per share with a market capitalization of $28.64 billion.
Alger Mid Cap Focus Fund stated the following regarding HEICO Corporation (NYSE:HEI) in its Q4 2024 investor letter:
“HEICO Corporation (NYSE:HEI) is a leading manufacturer of Federal Aviation Administration (FAA) approved jet engine and aircraft component replacement parts. Its Flight Support Group (FSG) provides FAA-approved aircraft and engine replacement parts, while the Electronics Technologies Group (ETG) serves industries such as aerospace, defense, homeland security, space, and medical with specialized electronic components. 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 detracted from performance after the company reported mixed fiscal fourth-quarter results. While earnings met analyst estimates, revenues fell short of consensus, accompanied by a modest revenue slowdown in commercial aerospace aftermarket revenue, which was largely expected. Despite this, we believe the company remains well-positioned for long-term growth potential within the commercial aerospace aftermarket.”
A machinist performing intricate work on a high-temperature resistant alloy for a jet engine.
HEICO Corporation (NYSE:HEI) is not on our list of 30 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.
HEICO Corporation (NYSE:HEI) contributed to Alger Mid Cap Focus Fund’s performance last quarter following better-than-expected earnings. In addition, please check out our hedge fund investor letters Q4 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.