Fred Alger Management, an investment management company, released its “Alger Small Cap Growth Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities rose during the second quarter of 2024, with the S&P 500 up 4.28%. Additionally, large-cap growth stocks saw significant gains in the quarter, while smaller-cap, especially value stocks, lagged. Class A shares of the fund underperformed the Russell 2000 Growth Index in the quarter. 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 Cabaletta Bio, Inc. (NASDAQ:CABA) in the second quarter 2024 investor letter. Cabaletta Bio, Inc. (NASDAQ:CABA) is a clinical-stage biotechnology company. The one-month return of Cabaletta Bio, Inc. (NASDAQ:CABA) was -29.23%, and its shares lost 64.92% of their value over the last three months. On August 20, 2024, Cabaletta Bio, Inc. (NASDAQ:CABA) stock closed at $4.89 per share with a market capitalization of $238.87 million.
Alger Small Cap Growth Fund stated the following regarding Cabaletta Bio, Inc. (NASDAQ:CABA) in its Q2 2024 investor letter:
“Cabaletta Bio, Inc. (NASDAQ:CABA) is a clinical-stage biotechnology company focused on the discovery and development of targeted cell therapies (CD19 “CAR-T”) for autoimmune diseases. During the quarter, the company’s shares were negatively impacted by several factors: 1) a challenging environment for biotechnology stocks, exacerbated by Fed policy decisions to maintain elevated interest rates, 2) intensified competition in antibody drugs for autoimmune diseases, and 3) concerns about the durability of CAR-T treatments. Despite the challenging quarter, we continue to believe Cabaletta’s cell therapy represents a multibillion-dollar opportunity for treatment of autoimmune diseases with a first mover advantage to FDA approval. Additionally, the company is expected to release follow-up clinical trial data later this year, which will further demonstrate the efficacy, safety, and durability of their CAR-T therapy.”
A scientist wearing lab coats examining a microscope in a modern laboratory.
Cabaletta Bio, Inc. (NASDAQ:CABA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Cabaletta Bio, Inc. (NASDAQ:CABA) at the end of the second quarter which was 35 in the previous quarter. While we acknowledge the potential of Cabaletta Bio, Inc. (NASDAQ:CABA) 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 Cabaletta Bio, Inc. (NASDAQ:CABA) and shared the list of most shorted stocks that are loved by analysts. Cabaletta Bio, Inc. (NASDAQ:CABA) contributed to the performance of Alger Small Cap Growth Fund during Q4 2023. In addition, please check out our hedge fund investor letters Q2 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.
