Alger, an investment management firm, published its “Alger Mid Cap Focus Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. During the fourth quarter, the largest portfolio sector weightings were Information Technology and Industrials. The largest sector overweight was Industrials. The portfolio had no exposure to the Utilities or Materials sectors and negligible exposure to the Real Estate sectors. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Alger Mid Cap Focus Fund, in its Q4 2021 investor letter, mentioned TaskUs, Inc. (NASDAQ: TASK) and discussed its stance on the firm. TaskUs, Inc. is a San Jose, California-based software company with a $2.7 billion market capitalization. TASK delivered a -47.93% and it closed at $28.65 per share on January 25, 2022.
Here is what Alger Mid Cap Focus Fund has to say about TaskUs, Inc. in its Q4 2021 investor letter:
“TaskUs is a modern customer care company that manages digital customer experience exclusively for highly innovative “technology Disruptor” clients. The company’s services include managing end-consumers’’ needs for its clients, such as sales, after sales-support, complaint management, trust and safety and transaction processing. It also provides content security and operations services driven by artificial intelligence.
The stock underperformed in the final three months of 2021 despite the company providing a strong third quarter earnings report. We think the underperformance resulted from the company issuing 25% year-over-year earnings growth guidance for fiscal year 2022, which implies a meaningful deceleration. Additionally, an agreement preventing certain insiders from selling shares expires in the middle of January. The company’s shares, furthermore, have significant ownership by hedge funds, making them subject to year-end rebalancing. Despite the recent weakness, we think the fiscal year 2022 guidance is extremely conservative and the company is currently well positioned for future upward revisions to its earnings estimates.”
Photo by Austin Distel on Unsplash
Our calculations show that TaskUs, Inc. (NASDAQ: TASK) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. TASK was in 18 hedge fund portfolios at the end of the third quarter of 2021, compared to 20 funds in the previous quarter. TaskUs, Inc. (NASDAQ: TASK) delivered a -50.49% return in the past 3 months.
In November 2021, we also shared another hedge fund’s views on TASK in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
