Fred Alger Management, an investment management company, released its “Alger Spectra Fund” second quarter 2024 investor letter. In 2024’s second quarter, U.S. stocks were positive, with the S&P 500 rising 4.28%. A copy of the letter can be downloaded here. The Materials and Industrials sectors underperformed compared to the S&P 500 Index, while the Information Technology and Communication Services sectors outperformed. There was a notable return gap in the second quarter, where large-cap growth stocks saw meaningful gains, while smaller-cap and particularly value stocks lagged. Against this backdrop, the fund outperformed the Russell 3000 Growth Index in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Alger Spectra Fund highlighted stocks like Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2024 investor letter. Amazon.com, Inc. (NASDAQ:AMZN) provides consumer products, advertising, and subscription services through online and physical stores that operates through North America, International, and Amazon Web Services (AWS) segments. The one-month return of Amazon.com, Inc. (NASDAQ:AMZN) was 8.28%, and its shares gained 30.21% of their value over the last 52 weeks. On September 3, 2024, Amazon.com, Inc. (NASDAQ:AMZN) stock closed at $176.25 per share with a market capitalization of $1.85 trillion.
Alger Spectra Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2024 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) is a renowned online retailer and leader in cloud computing. The company’s Amazon Web Services (AWS) division offers utility-scale cloud solutions that support corporate America’s digital transition. During the quarter, Amazon’s shares contributed to performance as the company reported strong fiscal first-quarter results, with revenues and operating income beating analyst estimates. Notably, AWS revenue growth accelerated, driven by easing cloud cost optimizations, renewed workload migrations, and an increasing contribution from AI workloads. On their earnings call, management highlighted plans to increase capital expenditures to enhance their technology infrastructure, catering to the surging demand for AI-driven computing.”
Amazon.com, Inc. (NASDAQ:AMZN) is in first position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 308 hedge fund portfolios held Amazon.com, Inc. (NASDAQ:AMZN) at the end of the second quarter which was 302 in the previous quarter. In the second quarter, Amazon.com, Inc. (NASDAQ:AMZN) delivered $148 billion in revenue, up 11% year-over-year. While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) 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 Amazon.com, Inc. (NASDAQ:AMZN) and shared the list of large cap stocks Jim Cramer can’t stop talking about. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
