Fred Alger Management, an investment management company, released its “Alger Mid Cap Growth Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities experienced a robust rally in Q1, with the S&P Index finishing up 10.56%. The fund underperformed the Russell Midcap Growth Index in the quarter. Industrials and healthcare sectors were the leading contributors while financials and utilities detracted. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Alger Mid Cap Growth Fund highlighted stocks like Vertiv Holdings Co (NYSE:VRT), in the first quarter 2024 investor letter. Vertiv Holdings Co (NYSE:VRT) designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments. The one-month return of Vertiv Holdings Co (NYSE:VRT) was -2.04%, and its shares gained 321.73% of their value over the last 52 weeks. On June 13, 2024, Vertiv Holdings Co (NYSE:VRT) stock closed at 95.31 per share with a market capitalization of $35.679 billion.
Alger Mid Cap Growth Fund stated the following regarding Vertiv Holdings Co (NYSE:VRT) in its first quarter 2024 investor letter:
“Vertiv Holdings Co (NYSE:VRT) specializes in critical cooling and power management infrastructure technologies, catering primarily to data center clients. As an industry leader in data center power and cooling solutions, we believe Vertiv stands to benefit from the secular growth in data and computing needs. During the quarter, shares contributed to performance driven by strong operating results and-increasing investor expectations for Al implementation driving more data center demand. Given its leading position, we anticipate Vertiv will demonstrate accelerated revenue and earnings growth as the demand for computing, particularly for Al applications. continues to rise.”
A close-up of a group of technicians working on complex data center systems.
Vertiv Holdings Co (NYSE:VRT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 85 hedge fund portfolios held Vertiv Holdings Co (NYSE:VRT) at the end of the first quarter which was 75 in the previous quarter. Vertiv Holdings Co (NYSE:VRT) had a strong start in 2024 with an 8% increase in first quarter sales. While we acknowledge the potential of Vertiv Holdings Co (NYSE:VRT) 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 Vertiv Holdings Co (NYSE:VRT) and shared the list of stocks Jim Cramer is Recommending. Vertiv Holdings Co (NYSE:VRT) contributed to Carillon Eagle Mid Cap Growth Fund’s Q1 2024 performance. 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.