Fred Alger Management, an investment management company, released its “Alger Small Cap Focus Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund underperformed the Russell 2000 Growth Index. The Health Care and Energy sectors contributed to the fund’s relative performance in the quarter, while Information Technology and Industrials detracted from performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Alger Small Cap Focus Fund highlighted stocks like Xometry, Inc. (NASDAQ:XMTR) in the first quarter 2023 investor letter. Headquartered in Derwood, Maryland, Xometry, Inc. (NASDAQ:XMTR) is an online marketplace for manufacturing solutions. On May 8, 2023, Xometry, Inc. (NASDAQ:XMTR) stock closed at $13.22 per share. One-month return of Xometry, Inc. (NASDAQ:XMTR) was -14.71%, and its shares lost 54.82% of their value over the last 52 weeks. Xometry, Inc. (NASDAQ:XMTR) has a market capitalization of $631.21 million.
Alger Small Cap Focus Fund made the following comment about Xometry, Inc. (NASDAQ:XMTR) in its Q1 2023 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. 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 period, the company reported weaker-than-expected fiscal fourth quarter revenues and guided fiscal first quarter and full-year 2023 below consensus. Management noted that suppliers accepted orders more quickly than usual on the Xometry platform due to a challenging macroeconomic environment, causing the proprietary algorithm to reduce market pricing, resulting in weaker revenue growth and gross margin compression. The company adjusted their proprietary algorithm in January and expects gross margins to improve throughout the year.”
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Xometry, Inc. (NASDAQ:XMTR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Xometry, Inc. (NASDAQ:XMTR) at the end of the fourth quarter which was 24 in the previous quarter.
We discussed Xometry, Inc. (NASDAQ:XMTR) in another article and shared the list of high growth consumer stocks to buy. In addition, please check out our hedge fund investor letters Q1 2023 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.
