Fred Alger Management, an investment management company, released its “Alger Small Cap Growth Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities rose in the fourth quarter, driven by decisive U.S. presidential election outcome. Class A shares of the fund outperformed the Russell 2000 Growth Index in the quarter. The Information Technology and Health Care sectors positively influenced performance, while Consumer Discretionary and Financials negatively impacted. 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 Modine Manufacturing Company (NYSE:MOD) in the fourth quarter 2024 investor letter. Modine Manufacturing Company (NYSE:MOD) offers thermal management products and solutions that operates through Climate Solutions and Performance Technologies segments. The one-month return of Modine Manufacturing Company (NYSE:MOD) was -15.91%, and its shares gained 45.99% of their value over the last 52 weeks. On January 27, 2024, Modine Manufacturing Company (NYSE:MOD) stock closed at $97.49 per share with a market capitalization of $5.119 billion.
Alger Small Cap Growth Fund stated the following regarding Modine Manufacturing Company (NYSE:MOD) in its Q4 2024 investor letter:
“Modine Manufacturing Company (NYSE:MOD) provides a diverse range of systems and solutions that improve indoor air quality, cool data centers, conserve natural resources, reduce harmful emissions, and promote environmentally friendly refrigerants. Since the appointment of a new CEO in December 2020, the company has undergone a significant transformation, simplifying its business, aligning strategies by market verticals, and adopting the 80/20 business philosophy (i.e., prioritizing 20% of inputs that drive 80% of outcomes) to drive decision-making. Despite reporting strong fiscal second-quarter results, shares detracted from performance due to the absence of a forward guidance raise, which was attributed to the company’s strategic move away from lower-margin vehicle business. In our view, Modine remains in the midst of a significant transformation, with increasing recognition in the high-growth data center cooling market, where it is positioned as a strong competitor and potential market share gainer.”
A technician in a factory, assembling a gas-fired unit heater.
Modine Manufacturing Company (NYSE:MOD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Modine Manufacturing Company (NYSE:MOD) at the end of the third quarter which was 31 in the previous quarter. Modine Manufacturing Company’s (NYSE:MOD) sales increased 6% in the first quarter of 2025 due to acquisitions in organic growth and climate solution. While we acknowledge the potential of Modine Manufacturing Company (NYSE:MOD) 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 Modine Manufacturing Company (NYSE:MOD) and shared the top stock picks of billionaire Mario Gabelli. Modine Manufacturing Company (NYSE:MOD) was Riverwater Partners Sustainable Value Strategy’s top contributor last year. 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.
