From Yahoo Finance.: 2025-04-18 08:09:00

Fred Alger Management released its first quarter 2025 investor letter, citing increased volatility due to changing trade policies and the emergence of AI models from China. The Alger Small Cap Focus Fund underperformed the Russell 2000 Growth Index, with sectors like Communication Services and Energy contributing positively while Health Care and Information Technology sectors detracted.

One of the highlighted stocks in the investor letter was Xometry, Inc. (NASDAQ:XMTR), an AI-powered online marketplace for custom-manufactured parts. Xometry, Inc. (NASDAQ:XMTR) saw a one-month return of -14.01% and a 37.32% gain in the last 52 weeks, with shares closing at $22.04 on April 17th, 2025.

Xometry, Inc. (NASDAQ:XMTR) utilizes AI-enabled technology for manufacturing on its marketplace. Strong fiscal fourth-quarter results were overshadowed by a modest 2025 loss projection, leading to share price decline amid a broader market sell-off. The company secured new cloud contracts, contributing to its performance during the quarter.

Alger Small Cap Focus Fund noted Xometry, Inc. (NASDAQ:XMTR) in its Q1 2025 investor letter, recognizing the company’s AI technology platform’s sophistication and market demand for its offerings. Despite performance challenges, the company’s strong operating results contributed positively during the quarter.

Xometry, Inc. (NASDAQ:XMTR) is not among the 30 Most Popular Stocks Among Hedge Funds. While 14 hedge fund portfolios held the stock at the end of Q4 2024, the focus is on AI stocks for higher returns within a shorter timeframe. Check out the report for a promising yet affordable AI stock.

In another article, Xometry, Inc. (NASDAQ:XMTR) was highlighted among the best 3D printing and additive manufacturing stocks to buy. The company contributed to Alger Small Cap Growth Fund’s performance in Q4 2024. Explore more hedge fund investor letters for insights from leading investors.

Read more: Here’s Why Investors Rotated Away from Xometry (XMTR)