Strong Demand Environment Pushed Allegro MicroSystems (ALGM) in Q4

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small/Mid Cap Growth Strategy” fourth-quarter investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy outperformed the Russell 2500 Growth Index and returned 6.03% (gross), and the index return was 4.72%. For the full year, the strategy return was -25.06% (gross) compared to a -26.21% return for the benchmark. The relative weakness in the Information Technology and Energy sectors in the quarter was offset by strength in the Financials, Consumer Discretionary, Health Care, and Industrials sectors. In addition, please check the fund’s top five holdings to know its best picks in 2022.

TimesSquare U.S. Small/Mid Cap Growth Strategy highlighted stocks like Allegro MicroSystems, Inc. (NASDAQ:ALGM) in its Q4 2022 investor letter. Headquartered in Manchester, New Hampshire, Allegro MicroSystems, Inc. (NASDAQ:ALGM) manufactures sensor integrated circuits (ICs) and application-specific analog power ICs. On March 22, 2023, Allegro MicroSystems, Inc. (NASDAQ:ALGM) stock closed at $45.76 per share. One-month return of Allegro MicroSystems, Inc. (NASDAQ:ALGM) was 4.50%, and its shares gained 56.07% of their value over the last 52 weeks. Allegro MicroSystems, Inc. (NASDAQ:ALGM) has a market capitalization of $8.763 billion.

TimesSquare U.S. Small/Mid Cap Growth Strategy made the following comment about Allegro MicroSystems, Inc. (NASDAQ:ALGM) in its Q4 2022 investor letter:

“There was a positive stock reaction to Allegro MicroSystems, Inc. (NASDAQ:ALGM); a semiconductor developer of magnetic sensors and power management chips, which rose by 37%. Allegro reported revenues, earnings, and forward guidance that outpaced expectations as the demand environment remained strong in its automotive and industrial end markets.”

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Allegro MicroSystems, Inc. (NASDAQ:ALGM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Allegro MicroSystems, Inc. (NASDAQ:ALGM) at the end of the fourth quarter which was 18 in the previous quarter.

We discussed Allegro MicroSystems, Inc. (NASDAQ:ALGM) in another article and shared Baron Discovery Fund’s views on the company. 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.