Fred Alger Management, an investment management company, released its “Alger Weatherbie Specialized Growth Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. stocks saw gains in the fourth quarter, primarily fueled by a clear result in the U.S. presidential election. Against this backdrop, Class A shares of the fund outperformed the Russell 2500 Growth Index in the quarter. The Health Care and Financials sectors contributed to the fund’s performance in the quarter, while Industrials and Energy sectors detracted. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Alger Weatherbie Specialized Growth Fund emphasized stocks such as Tandem Diabetes Care, Inc. (NASDAQ:TNDM). Headquartered in San Diego, California, Tandem Diabetes Care, Inc. (NASDAQ:TNDM) is a medical device company. The one-month return of Tandem Diabetes Care, Inc. (NASDAQ:TNDM) was -9.24%, and its shares gained 26.14% of their value over the last 52 weeks. On February 26, 2025, Tandem Diabetes Care, Inc. (NASDAQ:TNDM) stock closed at $33.59 per share with a market capitalization of $2.206 billion.
Alger Weatherbie Specialized Growth Fund stated the following regarding Tandem Diabetes Care, Inc. (NASDAQ:TNDM) in its Q4 2024 investor letter:
“Tandem Diabetes Care, Inc. (NASDAQ:TNDM) designs and manufactures innovative insulin delivery systems for people with diabetes. The company’s flagship product, the t:slim X2 insulin pump, integrates advanced technology for precise insulin management, including features like continuous glucose monitoring (CGM) compatibility and remote software updates. During the quarter, the company reported strong fiscal third-quarter results, with revenue beating analyst estimates and accelerating to 25% year-over-year, driven by strong renewal rates, the U.S. launch of the Mobi pump boosting new customer starts, and international growth. However, shares detracted from performance as investor sentiment was impacted by management’s lack of formal 2025 guidance, instead offering preliminary commentary focused on predictable revenue streams and gradual growth from new opportunities. While the company highlighted progress with Mobi adoption, renewal rates, and new sensor integrations, concerns lingered about the timeline and execution of key product launches, such as the t:slim X3 pump and the Sigi patch pump, as well as uncertainties around the pace of market expansion and margin improvements. In our view, the company has a number of margin accretive new products recently launched—or soon to launch—as well as efficiency initiatives underway, and believe these near-term profitability concerns appear to be overblown.”
A hospital room with a patient using a medical device to administer insulin.
Tandem Diabetes Care, Inc. (NASDAQ:TNDM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Tandem Diabetes Care, Inc. (NASDAQ:TNDM) at the end of the fourth quarter compared to 33 in the third quarter. While we acknowledge the potential of Tandem Diabetes Care, Inc. (NASDAQ:TNDM) 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 Tandem Diabetes Care, Inc. (NASDAQ:TNDM) and shared the list of oversold healthcare stocks to invest in. 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.