Alger, an investment manager, published its “Alger Spectra Fund” investor letter for the first quarter of 2021 – a copy of which can be downloaded here. In the first quarter of 2021, information technology and consumer discretionary were the largest weights in the portfolio sector. Class A shares of the Alger Spectra Fund underperformed the Russell 3000 Growth Index in the first quarter of 2021. You can check out the fund’s top 5 holdings to get a look at their best bets for 2021.
Alger Spectra Fund mentioned QUALCOMM Incorporated (NASDAQ: QCOM) in their investor letter for the first quarter of 2021 and shared their insights about the company. QUALCOMM Incorporated is a San Diego, California-based technology company with a current market capitalization of $ 153.6 billion. Since the beginning of the year, QCOM has delivered a return of -11.22%, while its 12-month earnings are up 82.01%. As of April 19, 2021, the stock closed at $ 135.25 per share.
Here’s what Alger Spectra Fund has to say about QUALCOMM Incorporated in their Q1 2021 investor letter:
Qualcomm Inc.’s long position was one of the main detractors to performance. Qualcomm is a leading semiconductor company with strong positions in the telecommunications end markets that position the company as one of the key beneficiaries of the rollout of the innovative 5G network standard. Qualcomm is recognized as having the best technology specifications for 5G chipsets, as evidenced by signing up of all 75 major OEMs, including Apple.
While Qualcomm made a notable positive contribution to the portfolio’s absolute and relative returns in 2020, the stock price fell during the first quarter and the position negatively impacted returns. The demand for chips in the market was strong; However, Qualcomm has failed to fully exploit demand due to capacity constraints. Expectations for Qualcomm were high and while the quarter generally beat consensus estimates and the outlook rose, the street expected a stronger positive surprise. We believe that the constraints on production capacity should disappear in the second half of this year. “
allstars / Shutterstock.com
Our calculations show that QUALCOMM Incorporated (NASDAQ: QCOM) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter of 2020, QUALCOMM Incorporated was present in 85 hedge fund portfolios, compared to 87 funds in the third quarter. QCOM has delivered a return of -13.90% in the last 3 months.
The top 10 stocks under hedge funds returned 231.2% between 2015 and 2020, outperforming the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds incredible. You turned down our articles on the best hedge fund stocks, mainly because you received biased information from other media about the poor performance of hedge funds. You could have doubled the size of your nest egg by investing in the best hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video on the top 5 hedge fund stocks at the moment. All of these stocks had a positive return in 2020.
At Insider Monkey, we scour multiple sources to discover the next great investment idea. For example, the Federal Reserve has created trillions of dollars electronically to keep interest rates around zero. We think this will lead to inflation and drive up real estate prices. So we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists such as the 15 best innovative stocks to buy to choose the next Tesla that delivers 10x returns. While we recommend positions in only a small fraction of the companies we analyze, we look at stocks as much as possible. We read letters from hedge fund investors and listen to stock presentations at hedge fund conferences. You can subscribe to our free daily newsletter on our website:
Disclosure: none. This article was originally published on Insider Monkey.