Fred Alger Management, an investment management company, released its “Alger Weatherbie Specialized Growth Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. During the quarter, Class A shares of the fund underperformed the Russell 2500 Growth Index. The fund returned 3.10% without sales charges and -2.33% with sales charges in the quarter compared to 6.54 % for the benchmark. The Energy and real estate sectors contributed to the fund’s relative performance in the quarter, while consumer discretionary and industrials sectors detracted from performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Alger Weatherbie Specialized Growth Fund highlighted stocks like Chegg, Inc. (NYSE:CHGG) in the first quarter 2023 investor letter. Headquartered in Santa Clara, California, Chegg, Inc. (NYSE:CHGG) is a learning platform. On June 22, 2023, Chegg, Inc. (NYSE:CHGG) stock closed at $9.24 per share. One-month return of Chegg, Inc. (NYSE:CHGG) was 0.43%, and its shares lost 52.35% of their value over the last 52 weeks. Chegg, Inc. (NYSE:CHGG) has a market capitalization of $1.106 billion.
Alger Weatherbie Specialized Growth Fund made the following comment about Chegg, Inc. (NYSE:CHGG) in its first quarter 2023 investor letter:
“Chegg, Inc. (NYSE:CHGG) is a leading online direct-to-consumer education business, which provides online textbook rentals and other internet-delivered services, such as homework help, tutoring and assistance with obtaining scholarships and finding internships. While the company reported fiscal fourth quarter results that met analyst estimates, management gave lower-than-expected fiscal first quarter and full-year revenue guidance. Management’s downward revision was attributed to anticipated weakness within international subscriber growth and lower average pricing during the first half of 2023, which negatively impacted share performance during the quarter. Separately, management noted that they do not see any material impact from OpenAl’s ChatGPT. given that some of its responses are factually incorrect, along with several universities banning the Al platform. Despite the disappointing guidance in the near-term, we believe the company remains well positioned to capitalize on the growing trend of online learning, given its suite of comprehensive student services, robust domestic market penetration and expanding international presence over the long-term.”
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Chegg, Inc. (NYSE:CHGG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Chegg, Inc. (NYSE:CHGG) at the end of first quarter 2023 which was 33 in the previous quarter.
We discussed Chegg, Inc. (NYSE:CHGG) in another article and shared Artisan Small Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2023 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.
