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Alger Spectra: “NXP Semiconductors (NXPI) has an Attractive Cyclical Tailwind”

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Jose Karlo Mari Tottoc
·3 min read
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Alger, an investment management firm, published its “Alger Spectra Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. During the first quarter of 2021, the largest portfolio sector weightings were Information Technology and Consumer Discretionary. Class A shares of the Alger Spectra Fund underperformed the Russell 3000 Growth Index during the first quarter of 2021. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Alger Spectra Fund, in their Q1 2021 investor letter, mentioned NXP Semiconductors N.V. (NASDAQ: NXPI) and shared their insights on the company. NXP Semiconductors N.V. is a Eindhoven, Netherlands-based semiconductor manufacturing company that currently has a $53.7 billion market capitalization. Since the beginning of the year, NXPI delivered a 22.48% return, extending its 12-month gains to 124.64%. As of April 19, 2021, the stock closed at $194.76 per share.

Here is what Alger Spectra Fund has to say about NXP Semiconductors N.V. in their Q1 2021 investor letter:

"NXP Semi conductors was among the top contributors to performance during the quarter. NXP Semiconductors provides high performance semiconductor solutions for a wide variety of applications, including automotive, mobile communications, consumer technology, computing, wireless infrastructure, lighting and industry. We believe NXP has an attractive cyclical tailwind with the economic reopening due to its exposure to the automotive industry and the growth of the Internet of Things. NXP's shares performed strongly after the company said it has generated revenue growth and provided healthy forward guidance driven by an improving global macro that is evident in decreasing channel inventory levels and solid pricing."

Best Semiconductor Stocks to Buy in 2021
Best Semiconductor Stocks to Buy in 2021

Dragon Images/Shutterstock.com

Our calculations show that NXP Semiconductors N.V. (NASDAQ: NXPI) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, NXP Semiconductors N.V. was in 66 hedge fund portfolios, compared to 68 funds in the third quarter. NXPI delivered a 13.09% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

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Disclosure: None. This article is originally published at Insider Monkey.