Fred Alger Management, an investment management company, released its “Alger Small Cap Growth Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities rose during the second quarter of 2024, with the S&P 500 up 4.28%. Additionally, large-cap growth stocks saw significant gains in the quarter, while smaller-cap, especially value stocks, lagged. Class A shares of the fund underperformed the Russell 2000 Growth Index in the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Alger Small Cap Growth Fund highlighted stocks like Wingstop Inc. (NASDAQ:WING) in the second quarter 2024 investor letter. Wingstop Inc. (NASDAQ:WING) is a restaurant company that operates under the brand name Wingstop. The one-month return of Wingstop Inc. (NASDAQ:WING) was 0.84%, and its shares gained 126.05% of their value over the last 52 weeks. On August 20, 2024, Wingstop Inc. (NASDAQ:WING) stock closed at $373.66 per share with a market capitalization of $10.95 billion.
Alger Small Cap Growth Fund stated the following regarding Wingstop Inc. (NASDAQ:WING) in its Q2 2024 investor letter:
“Wingstop Inc. (NASDAQ:WING) is a high-growth franchisor and operator of cooked-to-order fried chicken wings with over 20 different sauces that consumers have grown to love. The company operates just over 2,000 of its namesake stores around the globe, with the majority of those in the U.S. Shares contributed to performance during the quarter after the company reported strong fiscal first quarter operating results. The company reported better-than-expected revenues which were driven by several factors, including increased brand awareness through effective digital advertising, menu innovation such as its new chicken sandwich launch, and strong delivery service partnerships.”
Wingstop Inc. (NASDAQ:WING) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Wingstop Inc. (NASDAQ:WING) at the end of the second quarter which was 31 in the previous quarter. Wingstop Inc. (NASDAQ:WING) delivered remarkable results in Q2. The total revenue increased 45.3% year-over-year to $155.7 million in the second quarter. While we acknowledge the potential of Wingstop Inc. (NASDAQ:WING) 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 Wingstop Inc. (NASDAQ:WING) and shared Polen U.S. SMID Company Growth Strategy’s views on the company. In Q1 2024, Wingstop Inc. (NASDAQ:WING) contributed to the performance of Alger Small Cap Growth Fund. 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.
