Fred Alger Management, an investment management company, released its “Alger Weatherbie Specialized Growth Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter of 2024, U.S. equities performed well, with the S&P 500 rising 4.28%. Against this backdrop, Class A shares of the fund outperformed the Russell 2500 Growth Index in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Alger Weatherbie Specialized Growth Fund highlighted stocks like Sprout Social, Inc. (NASDAQ:SPT), in the second quarter 2024 investor letter. Sprout Social, Inc. (NASDAQ:SPT) engages in the design, development, and operation of a web-based social media management platform. The one-month return of Sprout Social, Inc. (NASDAQ:SPT) was -5.56%, and its shares lost 41.11% of their value over the last 52 weeks. On August 30, 2024, Sprout Social, Inc. (NASDAQ:SPT) stock closed at $31.10 per share with a market capitalization of $1.775 billion.
Alger Weatherbie Specialized Growth Fund stated the following regarding Sprout Social, Inc. (NASDAQ:SPT) in its Q2 2024 investor letter:
“Sprout Social, Inc. (NASDAQ:SPT) offers online tools for social media management, catering to enterprises, agencies, small businesses, and areas including customer service, marketing, and employee advocacy. The firm provides communication tools, contact management, lead generation, and analytics services. During the quarter, shares detracted from performance after the company reported weaker-than-expected fiscal first quarter revenues and reduced its full-year revenue forecast by about 5%. Management noted the revenue shortfall was partly due to temporary disruptions following adjustments within their go-to-market team, along with a broader slowdown in enterprise software spending and longer sales cycles influenced by macroeconomic factors.”
A marketing manager in a boardroom making decisions about the company’s social media management platform.
Sprout Social, Inc. (NASDAQ:SPT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held Sprout Social, Inc. (NASDAQ:SPT) at the end of the second quarter which was 22 in the previous quarter. The Sprout Social, Inc.’s (NASDAQ:SPT) second quarter revenue was $99.4 million, up 25% year-over-year. While we acknowledge the potential of Sprout Social, Inc. (NASDAQ:SPT) 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 addition, please check out our hedge fund investor letters Q2 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.
