Strong Results Lifted Stepstone Group (STEP) in Q2
Fred Alger Management, an investment management company, released its “Alger Weatherbie Specialized Growth Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter of 2024, U.S. equities performed well, with the S&P 500 rising 4.28%. Against this backdrop, Class A shares of the fund outperformed the Russell 2500 Growth Index in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Alger Weatherbie Specialized Growth Fund highlighted stocks like StepStone Group LP (NASDAQ:STEP) in the second quarter 2024 investor letter. StepStone Group LP (NASDAQ:STEP) is private equity and venture capital firm. The one-month return of StepStone Group Inc. (NASDAQ:STEP) was 15.94%, and its shares gained 77.42% of their value over the last 52 weeks. On August 30, 2024, StepStone Group Inc. (NASDAQ:STEP) stock closed at $54.70 per share with a market capitalization of $6.323 billion.
Alger Weatherbie Specialized Growth Fund stated the following regarding StepStone Group Inc. (NASDAQ:STEP) in its Q2 2024 investor letter:
"StepStone Group Inc. (NASDAQ:STEP) is a private markets investment firm that focuses on providing customized investment solutions and advisory and data services to clients. The company serves public and private defined benefit and defined contribution pension funds, sovereign wealth funds, insurance companies, prominent endowments, foundations, family offices and private wealth clients, which include high-net-worth and mass affluent individuals. During the quarter, shares contributed to performance following strong fiscal fourth-quarter results, with revenues and earnings beating analyst estimates. Better-than-expected revenues were attributed to higher realized carried interest and increased fees from co-mingled funds, particularly due to a favorable mix and strong growth in their high-margin Evergreen Funds. The quarter also featured robust fundraising activity, with management providing a positive forward outlook."
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StepStone Group Inc. (NASDAQ:STEP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held StepStone Group Inc. (NASDAQ:STEP) at the end of the second quarter which was 10 in the previous quarter. GAAP net income of StepStone Group Inc. (NASDAQ:STEP) in the fourth quarter of fiscal 2024 was $82.5 million including $30.8 million or $0.48 per share attributable to StepStone Group Incorporated. While we acknowledge the potential of StepStone Group Inc. (NASDAQ:STEP) 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 StepStone Group Inc. (NASDAQ:STEP) and shared Alger Weatherbie Specialized Growth Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2024 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.