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Alger Mid Cap Growth Fund Maintains its Conviction in MongoDB (MDB)

Fred Alger Management, an investment management company, released its “Alger Mid Cap Growth Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities experienced a robust rally in Q1, with the S&P Index finishing up 10.56%. The fund underperformed the Russell Midcap Growth Index in the quarter. Industrials and healthcare sectors were the leading contributors while financials and utilities detracted. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

Alger Mid Cap Growth Fund highlighted stocks like MongoDB, Inc. (NASDAQ:MDB), in the first quarter 2024 investor letter. MongoDB, Inc. (NASDAQ:MDB) offers general purpose database platform. The one-month return of MongoDB, Inc. (NASDAQ:MDB) was -41.02%, and its shares lost 43.39% of their value over the last 52 weeks. On June 13, 2024, MongoDB, Inc. (NASDAQ:MDB) stock closed at $218.18 per share with a market capitalization of $16.004 billion.

Alger Mid Cap Growth Fund stated the following regarding MongoDB, Inc. (NASDAQ:MDB) in its first quarter 2024 investor letter:

"MongoDB, Inc. (NASDAQ:MDB) is a scalable open-source database platform that allows developers to store, manage, and process structured. semi-structured and unstructured data generated by or feeding into the applications. Atlas, their cloud database-as-a-service platform, supports a comprehensive suite of core workloads, covering database, search, analytics and charts, and device sync. We believe the company is benefiting from a secular increase in demand for high-volume data storage driven by organizations needing to be able to store large amounts of data while still performing rapidly. During the quarter, the company reported strong fiscal fourth quarter results where revenues and operating profits beat analyst estimates, driven by strong growth in Atlas. However, shares fell after management issued forward revenue guidance that was below consensus estimates due to one-time items related to unused credits and multi-year upfront enterprise agreements. Nevertheless, we continue to believe the company is well positioned to become a best-in-class database management platform given its exposure to the secular increase in demand for high volume data storage solutions."

A database administrator managing a large database, ensuring the client's data is secure.

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MongoDB, Inc. (NASDAQ:MDB) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held MongoDB, Inc. (NASDAQ:MDB) at the end of the first quarter which was 62 in the previous quarter. In the first quarter, MongoDB, Inc. (NASDAQ:MDB) reported $451 million in revenue, up 22% year-over-year. While we acknowledge the potential of MongoDB, Inc. (NASDAQ:MDB) 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 cheapest AI stock.

In another article, we discussed MongoDB, Inc. (NASDAQ:MDB) and shared the list of stocks whose price targets were recently trimmed by analysts. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.