Fred Alger Management, an investment management company, released its “Alger Focus Equity Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. US markets performed strongly in Q1, with the S&P Index up 10.56%. Class A shares of the fund outperformed the Russell 1000 Growth Index in the quarter. Information Technology and industrial sectors boosted the relative performance while financials and consumer staples weighed down the fund’s performance in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Alger Focus Equity Fund highlighted stocks like Snowflake Inc. (NYSE:SNOW), in the first quarter 2024 investor letter. Snowflake Inc. (NYSE:SNOW) is a cloud-based data platform for various organizations. The one-month return of Snowflake Inc. (NYSE:SNOW) was 6.38%, and its shares lost 17.21% of their value over the last 52 weeks. On July 2, 2024, Snowflake Inc. (NYSE:SNOW) stock closed at $142.86 per share with a market capitalization of $47.829 billion.
Alger Focus Equity Fund stated the following regarding Snowflake Inc. (NYSE:SNOW) in its Q1 2024 investor letter:
“Snowflake Inc. (NYSE:SNOW) is a cloud-based data warehousing company that allows organizations to store, analyze and share data in a secure. scalable and cost-effective manner. This includes the Data Cloud. an ecosystem where Snowflake customers, partners. data providers, and data consumers can break down data silos and derive value from rapidly growing data sets in a secure, governed, and compliant way. Its platform supports a range of use cases. including data warehousing, data lakes, data engineering, data science, data application development, and data sharing. While the company reported an overall healthy fiscal fourth quarter. shares detracted from performance after management lowered their fiscal 2025 forward revenue guidance below analyst estimates. Further, the company announced that CEO Frank Slootman would be retiring from the role immediately, succeeded by Sridhar Ramaswamy, the former SVP of Al who has demonstrated impressive speed in bringing new Al products and features to market.”
A software engineer at work, surrounded by a wall of computer monitors connected to a ‘Data Cloud’ platform.
Snowflake Inc. (NYSE:SNOW) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 73 hedge fund portfolios held Snowflake Inc. (NYSE:SNOW) at the end of the first quarter which was 86 in the previous quarter. The product revenue of Snowflake Inc. (NYSE:SNOW) in Q1 grew 34% year over year to $790 million. While we acknowledge the potential of Snowflake Inc. (NYSE:SNOW) 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.
We discussed Snowflake Inc. (NYSE:SNOW) in another article and shared the list of best cloud computing stocks to buy. In addition, please check out our hedge fund investor letters Q1 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.
