Alger Capital, an investment management company, has published its third quarter letter to investors “Alger Small Cap Focus Fund”. A copy of it can be downloaded here. In the third quarter, the fund outperformed the Russell 2000 Growth Index. The consumer discretionary and industrials sectors contributed to the fund’s relative performance during the quarter, while the health care and energy sectors were the main detractors from performance. Additionally, you can check out the fund’s top 5 holdings for its top picks in 2022.
Alger Capital has highlighted stocks like RBC Bearings Incorporated (NYSE:RBC) in the Q3 2022 Letter to Investors. Based in Oxford, Conn., RBC Bearings Incorporated (NYSE:RBC) is a manufacturer of bearings and engineered precision components and operates in the Aerospace/Defense and Industrial segments. On November 7, RBC Bearings Incorporated (NYSE: RBC) stock closed at $243.72 per share. RBC Bearings Incorporated’s (NYSE:RBC) one-month return was 12.46% and its shares have gained 1.51% in value over the past 52 weeks. RBC Bearings Incorporated (NYSE: RBC) has a market capitalization of $7.051 billion.
Alger Capital made the following comment about RBC Bearings Incorporated (NYSE: RBC) in its third quarter 2022 letter to investors:
“Bearings RBC Incorporated (NYSE: RBC) is a leading manufacturer of high-tech precision bearings that are integral to the production and operation of most machinery, aircraft and mechanical systems. These products reduce wear on moving parts, facilitate proper power transmission, reduce damage and energy loss caused by friction, and control pressure and flow. RBCL focuses on highly engineered, regulated bearing products designed for specialty markets that require sophisticated design, testing and manufacturing capabilities. In November 2021, RBC completed the acquisition of ABB’s dodge mechanical power transmission business. This is the largest acquisition in RBC’s history, and we believe it is highly transformative. the transaction created a leading manufacturer with strong brand recognition for high-performance, mission-critical bearings and motion control products for original equipment manufacturers (OEMs) and the industrial aftermarket. The combined company has a more diverse end market, including additional industries such as food and beverage, warehousing, general machinery, and the construction and mining aftermarket. The combined company also has greater exposure to the secondary market, which tends to generate recurring revenue. Stocks outperformed this quarter as the company’s results indicated it was benefiting from a recovery in its commercial aerospace OEM business, as aircraft production at Boeing and Airbus increased and demand for the products remained strong. The company is also able to offset inflationary cost pressures and has demonstrated strong operating leverage despite a challenging environment.”
RBC Bearings Incorporated (NYSE:RBC) is not on our list of the 30 most popular hedge fund stocks. According to our database, 15 hedge fund portfolios held RBC Bearings Incorporated (NYSE:RBC) at the end of the second quarter, up from 16 in the prior quarter. Additionally, please see our Q3 2022 Hedge Fund Investor Letters page for more letters to hedge fund investors and other leading investors.
Disclosure: none. This article originally appeared on Insider Monkey.