Fred Alger Management, an investment management company, released its “Alger Mid Cap Focus Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities experienced positive outcome largely driven by decisive U.S. presidential election outcome. Class A shares of the fund outperformed the Russell Midcap Growth Index in the quarter. The Information Technology and Industrials sectors contributed to relative performance while Financials and Utilities detracted. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Alger Mid Cap Focus Fund highlighted stocks like Axon Enterprise, Inc. (NASDAQ:AXON), in the fourth quarter 2024 investor letter. Axon Enterprise, Inc. (NASDAQ:AXON) manufacturers conducted energy devices (CEDs) under the TASER brand. The one-month return of Axon Enterprise, Inc. (NASDAQ:AXON) was -4.85%, and its shares gained 130.55% of their value over the last 52 weeks. On January 16, 2025, Axon Enterprise, Inc. (NASDAQ:AXON) stock closed at $585.84 per share with a market capitalization of $44.67 billion.
Alger Mid Cap Focus Fund stated the following regarding Axon Enterprise, Inc. (NASDAQ:AXON) in its Q4 2024 investor letter:
“Axon Enterprise, Inc. (NASDAQ:AXON) is a global leader in providing public safety products and solutions, including TASER conducted energy devices, video hardware and analytics, and software designed to manage every stage of public safety incidents, from initial response to the judicial process. The company also offers select consumer products for personal protection. Axon’s primary customer base is U.S. law enforcement, with established relationships across nearly all 18,000 law enforcement agencies in the country. Leveraging its strong foundation with TASER devices, Axon has successfully expanded into adjacent markets, creating a cycle of potential growth opportunities across its business segments. Moreover, the company is experiencing robust growth in all three of its main segments. The TASER segment is seeing strong demand with the launch of TASER 10, replacing the previous TASER 7 model. Their sensors segment is benefitting from the rollout of the Bodycam 4, Axon’s latest body-worn camera, while their cloud segment continues to grow as more customers adopt its platform. During the quarter, shares contributed to performance after delivering strong fiscal third quarter operating results, with revenues and earnings exceeding analyst expectations. Management also raised its fiscal 2024 guidance, citing strong product demand, record bookings, early AI adoption, and improved operational efficiency driving sustained growth momentum. Additionally, Axon’s AI-driven cloud products are gaining momentum, which we believe reinforces confidence in the company’s market opportunities and long-term growth outlook.”
A technician in a white coat testing an in-car system on a modern military vehicle.
Axon Enterprise, Inc. (NASDAQ:AXON) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held Axon Enterprise, Inc. (NASDAQ:AXON) at the end of the third quarter which was 36 in the previous quarter. In the third quarter, Axon Enterprise, Inc.’s (NASDAQ:AXON) revenue grew 32% year-over-year and delivered strong adjusted EBITDA with a 26.7% margin. While we acknowledge the potential of Axon Enterprise, Inc. (NASDAQ:AXON) 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 Axon Enterprise, Inc. (NASDAQ:AXON) and shared Infuse Asset Management’s views on the company. In addition, please check out our hedge fund investor letters Q4 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.