Is Montrose Environmental Group (MEG) a Fundamentally Strong Company?
Fred Alger Management, an investment management company, released its “Alger Weatherbie Specialized Growth Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. During the quarter, Class A shares of the fund underperformed the Russell 2500 Growth Index. The fund returned 3.10% without sales charges and -2.33% with sales charges in the quarter compared to 6.54 % for the benchmark. The Energy and real estate sectors contributed to the fund’s relative performance in the quarter, while consumer discretionary and industrials sectors detracted from performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Alger Weatherbie Specialized Growth Fund highlighted stocks like Montrose Environmental Group, Inc. (NYSE:MEG) in the first quarter 2023 investor letter. Headquartered in North Little Rock, Arkansas, Montrose Environmental Group, Inc. (NYSE:MEG) is an environmental services company. On June 22, 2023, Montrose Environmental Group, Inc. (NYSE:MEG) stock closed at $41.69 per share. One-month return of Montrose Environmental Group, Inc. (NYSE:MEG) was 16.32%, and its shares gained 19.42% of their value over the last 52 weeks. Montrose Environmental Group, Inc. (NYSE:MEG) has a market capitalization of $1.254 billion.
Alger Weatherbie Specialized Growth Fund made the following comment about Montrose Environmental Group, Inc. (NYSE:MEG) in its first quarter 2023 investor letter:
"Montrose Environmental Group, Inc. (NYSE:MEG) offers various environmental services to a diverse client base, primarily in the U.S. The company has expertise in a wide variety of areas, including environmental assessment and permitting, measurement and analysis, and remediation and reuse. During the period, shares detracted from performance as the company reported slightly weaker than expected results, where fiscal fourth quarter revenues came in below consensus estimates. Moreover. management lowered their full-year margin expansion trajectory due to additional investments needed in the near-term in order to strengthen organic growth. Nonetheless, disappointed investors contributed to the share selloff, as analysts expected strong margin expansion in 2023. Despite the near-term setback, we believe company fundamentals remain intact as they remain a key beneficiary of remediation work on polyfluoroalkyl substances (PFAS) compounds, environmental regulations and US infrastructure spending."
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Montrose Environmental Group, Inc. (NYSE:MEG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Montrose Environmental Group, Inc. (NYSE:MEG) at the end of first quarter 2023 which was 8 in the previous quarter.
We discussed Montrose Environmental Group, Inc. (NYSE:MEG) in another article and shared Conestoga Micro Cap Strategy's views on the company. In addition, please check out our hedge fund investor letters Q1 2023 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.
