Is it a Good Move to Acquire Some Smartsheet (SMAR) Shares?

Alger, an investment management firm, published its “Alger Small 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 Health Care and Information Technology. The largest sector overweight was Health Care. The portfolio had no exposure to the Financials, Materials, Real Estate, or Utilities sectors. Class A shares of the Alger Small Cap Focus Fund underperformed the Russell 2000 Growth Index during the fourth quarter of 2021. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Alger Small Cap Focus Fund, in its Q4 2021 investor letter, mentioned Smartsheet Inc. (NYSE: SMAR) and discussed its stance on the firm. Smartsheet Inc. is a Bellevue, Washington-based software company with a $7.8 billion market capitalization. SMAR delivered a -20.12% return since the beginning of the year, while its 12-month returns are down by -26.70%. The stock closed at $61.87 per share on February 11, 2022.

Here is what Alger Small Cap Focus Fund has to say about Smartsheet Inc. in its Q4 2021 investor letter:

Smartsheet provides a cloud based-based platform for work management that lets employees plan and manage their work using grids, projects, cards and calendars. It enhances enterprise productivity and as such is a Positive Dynamic Change beneficiary of corporate America’s rapid digitization. We believe even as employees return to the office, demand for work management software is persistent and durable. The strong value proposition was evident in Smartsheet’s recent quarter as revenue growth and billings accelerated relative to recent periods driven by an increased mix toward upmarket enterprise level customers. Additionally, management provided guidance for next fiscal year of 37% to 40% billings growth versus a 26% consensus expectation.”

Our calculations show that Smartsheet Inc. (NYSE: SMAR) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. SMAR was in 50 hedge fund portfolios at the end of the third quarter of 2021, compared to 49 funds in the previous quarter. Smartsheet Inc. (NYSE: SMAR) delivered a -15.05% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on SMAR 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.