Fred Alger Management, an investment management company, released its “Alger Weatherbie Specialized Growth Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. stocks saw gains in the fourth quarter, primarily fueled by a clear result in the U.S. presidential election. Against this backdrop, Class A shares of the fund outperformed the Russell 2500 Growth Index in the quarter. The Health Care and Financials sectors contributed to the fund’s performance in the quarter, while Industrials and Energy sectors detracted. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Alger Weatherbie Specialized Growth Fund emphasized stocks such as Montrose Environmental Group, Inc. (NYSE:MEG). Montrose Environmental Group, Inc. (NYSE:MEG) is an environmental services company. The one-month return Montrose Environmental Group, Inc. (NYSE:MEG) was -16.91%, and its shares lost 57.85% of their value over the last 52 weeks. On February 26, 2025, Montrose Environmental Group, Inc. (NYSE:MEG) stock closed at $17.44 per share, with a market capitalization of $598.204 million.
Alger Weatherbie Specialized Growth Fund stated the following regarding Montrose Environmental Group, Inc. (NYSE:MEG) in its Q4 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. Despite reporting strong fiscal third-quarter results, shares detracted from performance due to misconceptions about the Supreme Court’s decision to overturn the Chevron deference doctrine (shifting more regulatory authority to Congress) and concerns that the incoming Trump administration might slow the pace of federal environmental regulation.”
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, 17 hedge fund portfolios held Montrose Environmental Group, Inc. (NYSE:MEG) at the end of the fourth quarter which was 18 in the previous quarter. 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 Conestoga Capital Advisors’ views on the company. Montrose Environmental Group, Inc.’s (NYSE:MEG) mixed quarterly results negatively impacted Alger Weatherbie Specialized Growth Fund’s performance last quarter. In addition, please check out our hedge fund investor letters Q4 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.