Reasons for the Outperformance of SPS Commerce (SPSC) in Q1
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 SPS Commerce, Inc. (NASDAQ:SPSC) in the first quarter 2023 investor letter. Headquartered in Minneapolis, Minnesota, SPS Commerce, Inc. (NASDAQ:SPSC) offers cloud-based supply chain management solutions. On June 23, 2023, SPS Commerce, Inc. (NASDAQ:SPSC) stock closed at $182.79 per share. One-month return of SPS Commerce, Inc. (NASDAQ:SPSC) was 12.59%, and its shares gained 62.45% of their value over the last 52 weeks. SPS Commerce, Inc. (NASDAQ:SPSC) has a market capitalization of $6.678 billion.
Alger Weatherbie Specialized Growth Fund made the following comment about SPS Commerce, Inc. (NASDAQ:SPSC) in its first quarter 2023 investor letter:
"SPS Commerce, Inc. (NASDAQ:SPSC) is a global provider of cloud-based supply chain management solutions for fulfillment, analytics, drop shipping and other use cases. Their SPS Commerce platform improves the way retailers, suppliers, grocers, distributors, and logistics companies manage orders, monitor sell-through performance, and discover new products by leveraging cloud technology. During the period, shares contributed to performance as the company reported strong fiscal fourth quarter results, where revenues came in above consensus estimates. Additionally, recurring revenue increased 20% year- over-year driven by double digit growth in both fulfillment and analytics. Despite a difficult macroeconomic environment with high inflation and recession concerns, management expressed confidence in its subscription-based business model, which is largely reliant on the number of client connections with only a small portion tied to volumes. Moreover, we believe the company is a key beneficiary of supply chain digitalization over the long- term, given the growing influence of e-commerce."
SPS Commerce, Inc. (NASDAQ:SPSC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held SPS Commerce, Inc. (NASDAQ:SPSC) at the end of first quarter 2023 which was 22 in the previous quarter.
We discussed SPS Commerce, Inc. (NASDAQ:SPSC) in another article and shared Conestoga Small 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.
