Alger Capital, an investment management company, released its “Alger Mid Cap Focus Fund” fourth quarter investor letter. A copy of the same can be downloaded here. Class Z of the Mid-cap growth fund returned 0.77% in the fourth quarter compared to the 6.90% gain for the Russell Midcap Growth Index. The Utilities and Communication sectors contributed to the fund’s relative performance while Information Technology and Consumer Discretionary detracted from the performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Alger Mid Cap Focus Fund highlighted stocks like RXO, Inc. (NYSE:RXO) in the Q4 2022 investor letter. Headquartered in Charlotte, North Carolina, RXO, Inc. (NYSE:RXO) provides technology-enabled freight transportation brokering services. On March 13, 2023, RXO, Inc. (NYSE:RXO) stock closed at $19.75 per share. One-month return of RXO, Inc. (NYSE:RXO) was -8.73%, and year-to-date its shares gained 14.83% of their value. RXO, Inc. (NYSE:RXO) has a market capitalization of $2.303 billion.
Alger Mid Cap Focus Fund made the following comment about RXO, Inc. (NYSE:RXO) in its Q4 2022 investor letter:
“As previously mentioned, RXO, Inc. (NYSE:RXO) spun out from XPO in late October. RXO is a leading technology-enabled transportation platform with truck brokerage being the main asset, which is the second largest player in the highly fragmented industry, with differentiated technology applications that have and should continue to contribute to above industry growth and margin strength. As an asset-light platform, RXO requires minimal capital expenditures which allows for strong return on invested capital (ROIC). During the period, we believe shares underperformed as a result of the shareholder churn following the spinoff in October, along with investor concerns around the difficult operating environment and cyclical pressures for the foreseeable future.”
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RXO, Inc. (NYSE:RXO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held RXO, Inc. (NYSE:RXO) at the end of the fourth quarter which was 0 in the previous quarter.
We discussed RXO, Inc. (NYSE:RXO) in another article and shared the list of stocks hedge funds are buying. In addition, please check out our hedge fund investor letters Q4 2022 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.
