Fred Alger Management, an investment management company, released its “Alger Mid Cap Focus Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities were positive in the quarter, with the S&P Index finishing up 4.28%. Class A shares of the fund underperformed the Russell Midcap Growth Index in the quarter. The Communication Services and industrials sectors were the relative contributors while Health Care and Information Technology detracted from the relative performance. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Alger Mid Cap Focus Fund highlighted stocks like Pinterest, Inc. (NYSE:PINS) in the second quarter 2024 investor letter. Pinterest, Inc. (NYSE:PINS) is a visual search and discovery platform that enables users to find ideas, such as recipes, home and style inspiration. The one-month return of Pinterest, Inc. (NYSE:PINS) was 8.75%, and its shares gained 13.24% of their value over the last 52 weeks. On September 3, 2024, Pinterest, Inc. (NYSE:PINS) stock closed at $31.31 per share with a market capitalization of $21.485 billion.
Alger Mid Cap Focus Fund stated the following regarding Pinterest, Inc. (NYSE:PINS) in its Q2 2024 investor letter:
“Pinterest, Inc. (NYSE:PINS) is a social media platform that enables users to search and shop products personalized to their taste, find ideas to do offline, and discover inspiring content. The platform has over 510 million global monthly active users, where over 95 million are in the U.S. We believe the company has the potential to benefit from strong product cycles due to enhanced ad stack improvements and platform optimizations. Furthermore, its recent partnership with Amazon.com allows Pinterest to tap into Amazon’s extensive merchant base. During the quarter, shares contributed to performance after the company reported better-than-expected fiscal first quarter revenues and raised fiscal second quarter revenues higher than consensus estimates. The company noted that their ad stack improvements and lower-funnel product cycle (i.e., the later stages of a customer’s journey towards making a purchase) are helping to drive incremental spend from large advertisers and consumer packaged goods (CPG) companies. Additionally, management highlighted plans to introduce new AI[1]driven tools designed to optimize content visibility and campaign efficacy, aiming to enhance conversion rates particularly for small and medium-sized businesses.”
A young, stylish woman using her smartphone to find inspiration for her latest DIY project.
Pinterest, Inc. (NYSE:PINS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held Pinterest, Inc. (NYSE:PINS) at the end of the second quarter which was 64 in the previous quarter. In the second quarter Pinterest, Inc. (NYSE:PINS) delivered $854 million in revenues, up 21% year-over-year. While we acknowledge the potential of Pinterest, Inc. (NYSE:PINS) 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 Pinterest, Inc. (NYSE:PINS) and shared the list of best affordable stocks under $40 according to short sellers. 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.
