Fred Alger Management, an investment management company, released its “Alger Small Cap Growth Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities rose in the third quarter, driven by a dovish monetary policy shift from the Federal Reserve (Fed), and optimism around a soft economic landing. Class A shares of the fund underperformed the Russell 2000 Growth Index in the quarter. The Health Care and Consumer Discretionary sectors positively influenced performance, while Financials and Information Technology 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 Weatherford International plc (NASDAQ:WFRD) in the third quarter 2024 investor letter. Weatherford International plc (NASDAQ:WFRD) is an energy services company that provides equipment and services for drilling, evaluation, completion, production, and intervention in oil, geothermal, and natural gas wells globally. The one-month return of Weatherford International plc (NASDAQ:WFRD) was 3.15%, and its shares lost 9.59% of their value over the last 52 weeks. On November 29, 2024, Weatherford International plc (NASDAQ:WFRD) stock closed at $82.30 per share with a market capitalization of $5.997 billion.
Alger Small Cap Growth Fund stated the following regarding Weatherford International plc (NASDAQ:WFRD) in its Q3 2024 investor letter:
“Weatherford International plc (NASDAQ:WFRD) is a global leader in providing technology, solutions, and services to the oil and gas industry. The company operates through three core segments: Drilling and Evaluation, which covers services from well planning to reservoir management; Well Construction and Completions, focusing on well integrity throughout the lifecycle; and Production and Intervention, offering technologies to optimize production and manage well abandonment. Key products include managed pressure drilling, cementation services, and artificial lift systems. We find the company’s fundamentals appealing due to its robust portfolio of leading technologies and management’s commitment to ensuring profitability across all market segments, exiting areas that don’t meet profitability targets. Weatherford also benefits from international and offshore growth, driven by steady capital investments. Additionally, its focus on margin improvement and cash flow has resulted in significant debt reduction and the recent initiation of a shareholder return program, which includes a quarterly dividend and share buybacks. During the quarter, the company reported strong second-quarter results, driven by robust operating margins, and raised its fiscal 2024 free cash flow guidance. However, shares underperformed due to sector-wide weakness from lower crude oil prices, as well as the company reducing its near-term production activity.”
A team of engineers in hardhats drilling for oil, clouds of smoke in the air.
Weatherford International plc (NASDAQ:WFRD) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Weatherford International plc (NASDAQ:WFRD) at the end of the third quarter which was 43 in the previous quarter. Weatherford International plc’s (NASDAQ:WFRD) third quarter revenue remained consistent sequentially and increased by 7% year-over-year, with international revenue growth of 9% year-over-year. While we acknowledge the potential of Weatherford International plc (NASDAQ:WFRD) 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 Weatherford International plc (NASDAQ:WFRD) and shared the list of best up and coming 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.