Here’s Why CrowdStrike Holdings (CRWD) Detracted in Q4
Alger Capital, an investment management company, released its “Alger Mid Cap Focus Fund” fourth quarter investor letter. A copy of the same can be downloaded here. Class Z of the Mid-cap growth fund returned 0.77% in the fourth quarter compared to the 6.90% gain for the Russell Midcap Growth Index. The Utilities and Communication sectors contributed to the fund’s relative performance while Information Technology and Consumer Discretionary detracted from the performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Alger Mid Cap Focus Fund highlighted stocks like CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in the Q4 2022 investor letter. Headquartered in Austin, Texas, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a cloud-delivered protection provider. On March 10, 2023, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) stock closed at $119.72 per share. One-month return of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) was 6.73%, and its shares lost 34.62% of their value over the last 52 weeks. CrowdStrike Holdings, Inc. (NASDAQ:CRWD) has a market capitalization of $28.238 billion.
Alger Mid Cap Focus Fund made the following comment about CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its Q4 2022 investor letter:
"CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leader in the Endpoint Protection Platform (EPP) market, where EPP solutions help protect enterprises' internet-connected devices from cyber-attacks. The company also benefits from a market shift from signature-based- on-premises solutions to cloud-based platforms using Al and machine learning. CrowdStrike's platform is one of the few 100% cloud-based architectures and we believe it is well positioned to displace incumbents with its advanced detection and remediation capabilities. During the period, shares underperformed as the company reported quarterly results slightly below expectations, where annual-recurring-revenue (ARR) and Net New ARR (NNARR) came in below consensus. Moreover, management guided fiscal 2023 revenue slightly below estimates, and mentioned that small-to-medium sized business (SMB) customers are increasingly delaying purchasing decisions given the tougher operating environment, leading to longer sales cycles. They also noted that larger enterprise customers are reducing operating expenses as they navigate next year's challenging environment. Management also addressed that signing a number of contracts with multiphase subscription start dates would result in pushing ARR recognition out into future quarters and expects this trend to persist in near term."
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CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held CrowdStrike Holdings, Inc. (NASDAQ:CRWD) at the end of the fourth quarter which was 85 in the previous quarter.
We discussed CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in another article and shared the list of growth stocks that hedge funds are dumping. In addition, please check out our hedge fund investor letters Q4 2022 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.
