Alger Weatherbie Specialized Growth: “Earnings Results for Progyny, Ahead of Expectations”

Alger, an investment management firm, published its ‘Alger Weatherbie Specialized Growth Fund’ fourth quarter 2020 investor letter – a copy of which can be downloaded here. In the letter, the fund highlighted their largest portfolio sector weightings, which is in Information Technology and Health Care sector, with their comments on notable companies. The Financials sector together with the Health Care sector is where they achieved the largest chunk of their returns. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Alger Weatherbie Specialized Growth Fund, in their Q4 2020 investor letter, mentioned Progyny, Inc. (NASDAQ: PGNY) and emphasized their views on the company. Progyny, Inc. is a U.S.-based fertility benefits management company that currently has a $4.2 billion market capitalization. Since the beginning of the year, PGNY delivered a 12.81% return, impressively extending its 12-month gains to 99.67%. As of March 15, 2021, the stock closed at $47.82 per share.

Here is what Alger Weatherbie Specialized Growth Fund has to say about Progyny, Inc. in their Q4 2020 investor letter:

“Progyny is a leading benefits management company specializing in fertility and family building solutions. It addresses a significant, underserved niche market with unique benefit plan designs, coordinated clinical delivery, and a network of carefully selected providers that culminate in superior clinical outcomes, significant cost savings and other benefits to all constituents. The prevalence of infertility is high, affecting one in eight couples in the U.S., according to the Centers for Disease Control and Prevention. The market for fertility treatments grew at a 10.5% compound annual growth rate (CAGR) from 2013 to 2017. During the second half of the quarter, Progyny’s share price climbed in part due to the November news of two efficacious phase three Covid-19 vaccines. Human resources departments have been focused on issues surrounding Covid-19, but news of the vaccines suggested their attention may turn to non-Covid matters, such as adding services from Progyny. Earnings results for Progyny were ahead of expectations, beating consensus estimates. The company’s pharmacy benefit business grew 21% and its fertility benefit services also delivered strong results.”

Aila Images/

Our calculations show that Progyny, Inc. (NASDAQ: PGNY) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Progyny, Inc. was in 24 hedge fund portfolios, compared to 20 funds in the third quarter. PGNY delivered a 15.62% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

Disclosure: None. This article is originally published at Insider Monkey.