Fred Alger Management, an investment management company, released its “Alger Small Cap Growth Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities rose in the fourth quarter, driven by decisive U.S. presidential election outcome. Class A shares of the fund outperformed the Russell 2000 Growth Index in the quarter. The Information Technology and Health Care sectors positively influenced performance, while Consumer Discretionary and Financials 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 Xometry, Inc. (NASDAQ:XMTR) in the fourth quarter 2024 investor letter. Xometry, Inc. (NASDAQ:XMTR) is an online marketplace that helps buyers to source custom-manufactured parts and assemblies. The one-month return of Xometry, Inc. (NASDAQ:XMTR) was -21.17%, and its shares gained 1.26% of their value over the last 52 weeks. On January 27, 2024, Xometry, Inc. (NASDAQ:XMTR) stock closed at $33.63 per share with a market capitalization of $1.67 billion.
Alger Small Cap Growth Fund stated the following regarding Xometry, Inc. (NASDAQ:XMTR) in its Q4 2024 investor letter:
“Xometry, Inc. (NASDAQ:XMTR) is a leading two-sided marketplace for on-demand manufacturing services. The company provides real-time access to global manufacturing demand and capacity, with sourcing and pricing available across a network of buyers and sellers. In our view, this marketplace enables buyers (e.g., engineers and product designers) to efficiently source manufacturing processes and sellers of manufacturing services to grow their businesses. Xometry’s AI-enabled technology platform is powered by proprietary machine learning algorithms, resulting in a sophisticated marketplace for manufacturing. During the quarter, shares contributed to performance after delivering strong fiscal third quarter results, along with management raising fiscal fourth guidance that signaled continued revenue growth and earnings-before-interest-taxes-depreciation-amortization (EBITDA) break-even. Further, we believe last few quarters have demonstrated consistency in execution which is driving investor confidence.”
A machinist operating a CNC machine in a well-lit facility, scrutinizing the quality of a part.
Xometry, Inc. (NASDAQ:XMTR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held Xometry, Inc. (NASDAQ:XMTR) at the end of the third quarter which was 9 in the previous quarter. Xometry, Inc. (NASDAQ:XMTR) delivered strong growth in the third quarter 2024 with revenue increasing 19% year-over-year to a record $142 million, driven by marketplace business. While we acknowledge the potential of Xometry, Inc. (NASDAQ:XMTR) 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 Xometry, Inc. (NASDAQ:XMTR) and shared the list of all companies under $2 billion market cap. 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.