Fred Alger Management, an investment management company, released its “Alger Weatherbie Specialized Growth Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equities experienced increased volatility in the first quarter due to changing fiscal, monetary, and trade policies. Uncertainty arose from the emergence of advanced AI models from China. Against this backdrop, Class A shares of the fund underperformed the Russell 2500 Growth Index in the quarter. The Consumer Discretionary and Industrials sectors contributed to the fund’s performance in the quarter, while Health Care and Information Technology detracted. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Alger Weatherbie Specialized Growth Fund highlighted stocks such as Palomar Holdings, Inc. (NASDAQ:PLMR). Palomar Holdings, Inc. (NASDAQ:PLMR), with a market capitalization of $4.263 billion, is a specialty insurance company. The one-month return of Palomar Holdings, Inc. (NASDAQ:PLMR) was 0.19%, and its shares gained 96.86% of their value over the last 52 weeks. On June 17, 2025, Palomar Holdings, Inc. (NASDAQ:PLMR) stock closed at $159.40 per share.
Alger Weatherbie Specialized Growth Fund stated the following regarding Palomar Holdings, Inc. (NASDAQ:PLMR) in its Q1 2025 investor letter:
“Palomar Holdings, Inc. (NASDAQ:PLMR) is a specialty insurance company providing property and casualty coverage focused on risks such as earthquakes, hurricanes, and floods, primarily serving residential and commercial clients in the United States. The company generates revenue by underwriting specialized insurance policies and collecting premiums from policyholders. We believe Palomar’s targeted focus on underserved markets and strategic growth initiatives positions the company favorably to capture opportunities within niche insurance segments, supporting sustained profitability and growth. During the quarter, shares contributed positively to performance after the company reported strong fiscal fourth-quarter operating results, beating analyst earnings estimates for the ninth consecutive quarter. This performance was driven by robust premium growth and effective loss management. Additionally, management raised its fiscal 2025 earnings guidance above consensus expectations.”
A real estate investment banker sitting in a plush office, reviewing financials and papers.
Palomar Holdings, Inc. (NASDAQ:PLMR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Palomar Holdings, Inc. (NASDAQ:PLMR) at the end of the first quarter, which was 20 in the previous quarter. While we acknowledge the potential of Palomar Holdings, Inc. (NASDAQ:PLMR) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In another article, we covered Palomar Holdings, Inc. (NASDAQ:PLMR) and shared Conestoga Capital Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of PLMR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
