Fred Alger Management, an investment management company, released its “Alger Small Cap Growth Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities rose in the third quarter, driven by a dovish monetary policy shift from the Federal Reserve (Fed), and optimism around a soft economic landing. Class A shares of the fund underperformed the Russell 2000 Growth Index in the quarter. The Health Care and Consumer Discretionary sectors positively influenced performance, while Financials and Information Technology negatively impacted. 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 Modine Manufacturing Company (NYSE:MOD) in the third quarter 2024 investor letter. Modine Manufacturing Company (NYSE:MOD) offers thermal management products and solutions. The one-month return of Modine Manufacturing Company (NYSE:MOD) was 23.70%, and its shares gained 158.16% of their value over the last 52 weeks. On November 29, 2024, Modine Manufacturing Company (NYSE:MOD) stock closed at $135.79 per share with a market capitalization of $7.129 billion.
Alger Small Cap Growth Fund stated the following regarding Modine Manufacturing Company (NYSE:MOD) in its Q3 2024 investor letter:
“Modine Manufacturing Company (NYSE:MOD) is a global leader in thermal management solutions, providing innovative heating, cooling, and ventilation products for a wide range of industries. With a rich history dating back to 1916, Modine serves industries including automotive, commercial HVAC, data centers, and industrial applications. In our view, the company’s key growth drivers include high-performance computing, global emissions regulations, electrification, low-GWP refrigerant regulations, and clean air quality in schools and public buildings. During the quarter, shares contributed to performance marked by several positive developments. The company reported better-than-expected fiscal second quarter revenue growth driven by its datacenter business, offsetting declines from exiting their lower-margin businesses. Moreover, during its first investor day in years, the company significantly raised its long-term guidance for fiscal 2027, projecting double-digit revenue growth.”
A technician in a factory, assembling a gas-fired unit heater.
Modine Manufacturing Company (NYSE:MOD) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Modine Manufacturing Company (NYSE:MOD) at the end of the third quarter which was 31 in the previous quarter. Modine Manufacturing Company’s (NYSE:MOD) sales increased 6% in the first quarter of 2025 due to acquisitions in organic growth and climate solution. While we acknowledge the potential of Modine Manufacturing Company (NYSE:MOD) 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 Modine Manufacturing Company (NYSE:MOD) and shared the list of best stocks to buy from Mario Gabelli stock portfolio. In addition, please check out our hedge fund investor letters Q3 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.