Fred Alger Management, an investment management company, released its “Alger Spectra Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In 2024’s second quarter, U.S. stocks were positive, with the S&P 500 rising 4.28%. The Materials and Industrials sectors underperformed compared to the S&P 500 Index, while the Information Technology and Communication Services sectors outperformed. There was a notable return gap in the second quarter, where large-cap growth stocks saw meaningful gains, while smaller-cap and particularly value stocks lagged. Against this backdrop, the fund outperformed the Russell 3000 Growth Index in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Alger Spectra Fund highlighted stocks like Martin Marietta Materials, Inc. (NYSE:MLM) in the second quarter 2024 investor letter. Martin Marietta Materials, Inc. (NYSE:MLM) is a company that manufactures natural resource-based building materials. The one-month return of Martin Marietta Materials, Inc. (NYSE:MLM) was -3.50%, and its shares gained 18.42% of their value over the last 52 weeks. On September 3, 2024, Martin Marietta Materials, Inc. (NYSE:MLM) stock closed at $519.45 per share with a market capitalization of $31.747 billion.
Alger Spectra Fund stated the following regarding Martin Marietta Materials, Inc. (NYSE:MLM) in its Q2 2024 investor letter:
“Martin Marietta Materials, Inc. (NYSE:MLM), a leading supplier of building materials such as aggregates, cement, ready-mixed concrete, and asphalt, serves the construction and infrastructure industries across the U.S., Canada, and the Bahamas. During the quarter, the company reported mixed fiscal first quarter operating results, where revenues came in slightly below analyst estimates. While the company noted that lower-than-expected shipments in aggregates was due largely to weather, a 13% increase in aggregate pricing starting in January 2024 helped offset this weakness. Moreover, management provided lower than expected 2024 aggregates volume guidance as they shift their focus on higher priced projects. Given the disappointment in projected aggregate volumes, shares detracted from performance during the quarter.”
A large construction project with cranes and forklifts in action, demonstrating the company’s building materials business.
Martin Marietta Materials, Inc. (NYSE:MLM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Martin Marietta Materials, Inc. (NYSE:MLM) at the end of the second quarter which was 52 in the previous quarter. While we acknowledge the potential of Martin Marietta Materials, Inc. (NYSE:MLM) 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.
