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 Semtech Corporation (NASDAQ:SMTC). Semtech Corporation (NASDAQ:SMTC) manufactures and distributes analog and mixed-signal semiconductor products and advanced algorithms. The one-month return of Semtech Corporation (NASDAQ:SMTC) was -42.56%, and its shares gained 83.40% of their value over the last 52 weeks. On February 26, 2025, Semtech Corporation (NASDAQ:SMTC) stock closed at $38.88 per share with a market capitalization of $3.351 billion.
Alger Weatherbie Specialized Growth Fund stated the following regarding Semtech Corporation (NASDAQ:SMTC) in its Q4 2024 investor letter:
“Semtech Corporation (NASDAQ:SMTC) designs and manufactures analog and mixed-signal semiconductors for a wide range of applications, including Internet of Things (IoT), data centers, industrial equipment, and consumer electronics. The company is a global leader in low-power, high-performance solutions, with a focus on enabling connectivity, energy efficiency, and miniaturization across its target markets. Semtech operates in three business segments: Protection, Signal Integrity, and Wireless & Sensing. During the quarter, shares contributed to performance after the company reported better-than-expected fiscal third quarter operating results, where revenues and earnings beat consensus estimates. While all operating segments performed well across each end market, data center growth was a notable standout, up 58% quarter-over-quarter and accounting for 18% of total revenue.”
A technician looking at a circuit board of analog semiconductor products.
Semtech Corporation (NASDAQ:SMTC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held Semtech Corporation (NASDAQ:SMTC) at the end of the fourth quarter compared to 32 in the third quarter. While we acknowledge the potential of Semtech Corporation (NASDAQ:SMTC) 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 Semtech Corporation (NASDAQ:SMTC) and shared the list of AI Stocks that will skyrocket. 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.