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 Montrose Environmental Group, Inc. (NYSE:MEG) in the third quarter 2024 investor letter. Montrose Environmental Group, Inc. (NYSE:MEG) is an environmental services company. The one-month return of Montrose Environmental Group, Inc. (NYSE:MEG) was -31.44%, and its shares lost 44.18% of their value over the last 52 weeks. On December 2, 2024, Montrose Environmental Group, Inc. (NYSE:MEG) stock closed at $17.97 per share with a market capitalization of $616.384 million.
Alger Weatherbie Specialized Growth Fund stated the following regarding Montrose Environmental Group, Inc. (NYSE:MEG) in its Q3 2024 investor letter:
“Montrose Environmental Group, Inc. (NYSE:MEG) offers various environmental services to a diverse client base, primarily in the U.S. The company has expertise in a wide variety of areas, including environmental assessment and permitting, measurement and analysis, and remediation and reuse. Shares detracted from performance after the company delivered mixed fiscal second quarter operating results, where revenues came in slightly lower than analyst estimates. However, management maintained their fiscal 2024 revenue guidance. Separately, management commented that they are optimistic about the long-term growth from regulatory drivers following the overturning of the Chevron doctrine. This U.S. Supreme Court decision increases regulatory complexity, which drives demand for the company’s advisory and consulting services. We believe this shift likely places more influence on state and local regulators, an area where the company has a competitive advantage.”
A biohazard waste disposal team safely transferring contaminated water for treatment.
Montrose Environmental Group, Inc. (NYSE:MEG) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Montrose Environmental Group, Inc. (NYSE:MEG) at the end of the third quarter which was 17 in the previous quarter. Montrose Environmental Group, Inc. (NYSE:MEG)’s revenues surged to a record $178.7 million in the third quarter, a 6.4% increase over Q3 2023, and climbed by 10.7% to $507.4 million in the first nine months of the year. While we acknowledge the potential of Montrose Environmental Group, Inc. (NYSE:MEG) 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 Montrose Environmental Group, Inc. (NYSE:MEG) and shared the list of best waste management stocks to buy according to analysts. 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.