Alger Capital, an investment management company, released its “Alger Small Cap Focus Fund” third quarter investor letter. A copy of the same can be downloaded here. In the third quarter, the fund outperformed the Russell 2000 Growth Index. Consumer discretionary and industrial sectors contributed to the fund’s relative performance in the quarter, while healthcare and energy sectors were the major performance detractors. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Alger Capital highlighted stocks like Mercury Systems, Inc. (NASDAQ:MRCY) in the Q3 2022 investor letter. Headquartered in Andover, Massachusetts, Mercury Systems, Inc. (NASDAQ:MRCY) is a technology company that serves aerospace and defense industries. On November 4, 2022, Mercury Systems, Inc. (NASDAQ:MRCY) stock closed at $48.05 per share. One-month return of Mercury Systems, Inc. (NASDAQ:MRCY) was 7.86% and its shares lost 6.74% of their value over the last 52 weeks. Mercury Systems, Inc. (NASDAQ:MRCY) has a market capitalization of $2.776 billion.
Alger Capital made the following comment about Mercury Systems, Inc. (NASDAQ:MRCY) in its Q3 2022 investor letter:
“Mercury Systems, Inc. (NASDAQ:MRCY) is a defense electronics company that supplies secure sensors and safety-critical processing subsystems for defense platforms. Its products are used in two broad areas: C41 (Command, Control, Communications, Computers and Intelligence) and Sensor and Effector Mission Systems. Mercury’s products work in extreme and rugged environments, and the company provides content for more than 300 active defense programs with over 25 prime contractors or direct government contractors. The company benefits from a secular trend of defense electronics outsourcing, flight to quality and supply chain delayering at primary defense contractors. Mercury has also aligned itself with high-growth areas within the defense modernization budget.
Shares of mercury underperformed in the third quarter due to weaker-than-expected operating results, and management provided forward guidance that was below consensus. The defense industry is currently grappling with supply chain issues that are resulting in production delays, and Mercury is not immune to this challenge. however, we believe Mercury remains well positioned once these headwinds abate and defense spending increases.”
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Mercury Systems, Inc. (NASDAQ:MRCY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Mercury Systems, Inc. (NASDAQ:MRCY) at the end of the second quarter which was 17 in the previous quarter.
We discussed Mercury Systems, Inc. (NASDAQ:MRCY) in another article and shared Baron Funds’ views on the company. In addition, please check out our hedge fund investor letters Q3 2022 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.
