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 Kura Sushi USA, Inc. (NASDAQ:KRUS) in the second quarter 2024 investor letter. Kura Sushi USA, Inc. (NASDAQ:KRUS) operates technology-enabled Japanese restaurants. The one-month return of Kura Sushi USA, Inc. (NASDAQ:KRUS) was 13.86%, and its shares lost 30.79% of their value over the last three months. On August 20, 2024, Kura Sushi USA, Inc. (NASDAQ:KRUS) stock closed at $61.43 per share with a market capitalization of $690.774 million.
Alger Small Cap Growth Fund stated the following regarding Kura Sushi USA, Inc. (NASDAQ:KRUS) in its Q2 2024 investor letter:
“Kura Sushi USA, Inc. (NASDAQ:KRUS) engages in the operation of technology-enabled Japanese restaurants. The company offers a distinctive dining experience by serving authentic Japanese cuisine through an engaging revolving sushi service model. While company shares have done well year-to-date, shares fell in the second quarter due to negative market sentiment around consumer spending, along with some profit taking, in our view. At the end of the quarter, the company reported weaker-than-expected fiscal third quarter results, noting a slowdown in same-store-sales (SSS) growth. Management attributed the SSS weakness primarily to challenges in the California market, where the company has significant exposure. Despite the disappointing quarter, we believe the company remains well positioned to potentially capitalize on its significant expansion opportunities within the U.S.”
A close-up of a sushi chef, displaying his care and attention to detail in making a dish.
Kura Sushi USA, Inc. (NASDAQ:KRUS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Kura Sushi USA, Inc. (NASDAQ:KRUS) at the end of the second quarter which was 14 in the previous quarter. Kura Sushi USA, Inc. (NASDAQ:KRUS) reported $63.1 million in total sales for the fiscal third quarter compared to $49.2 million in the prior-year period. While we acknowledge the potential of Kura Sushi USA, Inc. (NASDAQ:KRUS) 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 Kura Sushi USA, Inc. (NASDAQ:KRUS) and shared Alger Small Cap Growth Fund’s views on the company in Q3 2023. In addition, please check out our hedge fund investor letters Q2 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.
