Fred Alger Management, an investment management company, released its “Alger Small Cap Growth Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund outperformed the Russell 2000 Growth Index. The Information Technology and Healthcare sectors contributed to the fund’s relative performance in the quarter, while Consumer Discretionary and Communications services detracted from performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Alger Small Cap Growth Fund highlighted stocks like Shake Shack Inc. (NYSE:SHAK) in the third quarter 2023 investor letter. Headquartered in New York, New York, Shake Shack Inc. (NYSE:SHAK) owns and operates Shake Shack restaurants. On November 30, 2023, Shake Shack Inc. (NYSE:SHAK) stock closed at $60.56 per share. One-month return of Shake Shack Inc. (NYSE:SHAK) was 7.24%, and its shares gained 16.30% of their value over the last 52 weeks. Shake Shack Inc. (NYSE:SHAK) has a market capitalization of $2.562 billion.
Alger Small Cap Growth Fund made the following comment about Shake Shack Inc. (NYSE:SHAK) in its Q3 2023 investor letter:
“Shake Shack Inc. (NYSE:SHAK) is an elevated take on classic American cuisine. The company uses high-quality ingredients to craft Angus beef burgers, crinkle-cut fries, crispy chicken, and hot dogs. The company serves a full-complement of beverages including house-made lemonade, hand-spun milkshakes, beer, wine, and soft drinks. During the quarter, market sentiment towards full- service restaurants turned decidedly negative, as the combination of persistent inflation, rising gas prices, and the resumption of student loan payments weighted on consumer sentiment. However, we believe that none of these factors are specific to Shake Shack, and our analysis suggests that company fundamentals remain strong. While shares detracted from performance, we continue to remain positive on the long-term growth potential of the Shake Shack brand and its strong unit economics.”
A chef giving final touches to plated burgers in the kitchen.
Shake Shack Inc. (NYSE:SHAK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Shake Shack Inc. (NYSE:SHAK) at the end of third quarter which was 24 in the previous quarter.
We discussed Shake Shack Inc. (NYSE:SHAK) in another article and shared most valuable restaurant companies in the world. In addition, please check out our hedge fund investor letters Q3 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.
