Fred Alger Management, an investment management company, released its “Alger Weatherbie Specialized Growth Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. US markets performed strongly in Q1, with the S&P Index up 10.56%. Investor confidence rose with the anticipated soft landing of the market. However, Class A shares of the fund underperformed the Russell 2500 Growth Index in the quarter. Communication services and real estate sectors boosted the relative performance while information technology and industrials weighed down. 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 Xometry, Inc. (NASDAQ:XMTR) in the first quarter 2024 investor letter. Xometry, Inc. (NASDAQ:XMTR) is an online marketplace that helps buyers to source custom-manufactured parts and assemblies. Xometry, Inc.’s (NASDAQ:XMTR) one-month return was -12.79%, and its shares lost 19.90% of their value over the last 52 weeks. On May 31, 2024, Xometry, Inc. (NASDAQ:XMTR) stock closed at $15.34 per share with a market capitalization of $748.587 million.
Alger Weatherbie Specialized Growth Fund stated the following regarding Xometry, Inc. (NASDAQ:XMTR) in its first quarter 2024 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 Al-enabled technology platform is powered by proprietary machine learning algorithms, resulting in a sophisticated marketplace for manufacturing. During the quarter, the company reported fiscal fourth quarter results, where earnings and revenues met consensus estimates. However, shares detracted from performance after the company announced a change in senior management, as CFO Jim Rallo was replaced by James Miln. Rallo and will stay on through April as a contractor and then plans to retire. Separately, management also noted that reaching a breakeven level of EBITDA (earnings before interest, taxes, depreciation and amortization) may take longer than expected, given the ongoing slowdown in the U.S. industrial economy. Despite these near-term headwinds, we believe the company continues to show solid growth in customers and their TeamSpace rollout (i.e., targeting larger companies that collaborate on the Xometry platform) could potentially continue to drive growth at larger customers.”
A machinist operating a CNC machine in a well-lit facility, scrutinizing the quality of a part.
Xometry, Inc. (NASDAQ:XMTR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held Xometry, Inc. (NASDAQ:XMTR) at the end of the first quarter which was 12 in the previous quarter. Xometry, Inc.’s (NASDAQ:XMTR) first quarter revenue climbed 16% year-over-year to $123 million, driven by its Marketplace business.
In another article, we discussed Xometry, Inc. (NASDAQ:XMTR) and shared Brown Capital Management’s views on the company in the previous quarter. Xometry, Inc. (NASDAQ:XMTR) was one of Alger Weatherbie Specialized Growth Fund’s top contributors in the previous quarter. In addition, please check out our hedge fund investor letters Q1 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.
