Fred Alger Management, an investment management company, released its “Alger Spectra Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, Class A shares of the fund underperformed the Russell 3000 Growth Index and returned 7.98% (with sales charges) compared to the Index return of 13.85%. Consumer Discretionary and Industrials were the leading contributors to the fund’s relative performance in the quarter, while Information technology and Health care sectors detracted. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Alger Spectra Fund highlighted stocks like Acadia Healthcare Company, Inc. (NASDAQ:ACHC) in the first quarter 2023 investor letter. Headquartered in Franklin, Tennessee, Acadia Healthcare Company, Inc. (NASDAQ:ACHC) is a behavioral healthcare services provider. On May 22, 2023, Acadia Healthcare Company, Inc. (NASDAQ:ACHC) stock closed at $72.58 per share. One-month return of Acadia Healthcare Company, Inc. (NASDAQ:ACHC) was -1.63%, and its shares gained 2.34% of their value over the last 52 weeks. Acadia Healthcare Company, Inc. (NASDAQ:ACHC) has a market capitalization of $6.68 billion.
Alger Spectra Fund made the following comment about Acadia Healthcare Company, Inc. (NASDAQ:ACHC) in its Q1 2023 investor letter:
“Acadia Healthcare Company, Inc. (NASDAQ:ACHC) is a leading U.S. mental health services provider and operator of various treatment centers and facilities. Demand for behavioral health services continued to grow to higher all-time highs outstripping already insufficient supply, where only 28% of the U.S. population has adequate access to mental health care professionals, according to the Health Resources & Services Administration. As such, patients. employers, payers and society-at-large are increasingly recognizing the importance of mental behavioral health, which has resulted in 1) unmet demand in the market and 2) greater funding and improved rate increases to be directed at mental health providers. We believe the unmet demand trends and supportive payments backdrop allow Acadia to grow via facility expansions, new facility openings and tuck-in acquisitions. During the period, the company reported in-line fiscal fourth quarter results where management raised full year 2023 sales guidance but maintained 2023 earnings guidance. Subsequently. shares sold off following management’s comments around higher than anticipated labor costs, which explained why analysts’ 2023 earnings guidance remained unchanged. While shares detracted from performance during the quarter, we believe the primary underpinnings of a favorable supply/demand imbalance in behavioral health services is likely to continue over the medium term, irrespective of macroeconomic headwinds.”
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Acadia Healthcare Company, Inc. (NASDAQ:ACHC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Acadia Healthcare Company, Inc. (NASDAQ:ACHC) at the end of the fourth quarter which was 37 in the previous quarter.
We discussed Acadia Healthcare Company, Inc. (NASDAQ:ACHC) in another article and shared the list of stocks recently downgraded by analysts. In addition, please check out our hedge fund investor letters Q1 2023 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.
