GeneDx Holdings Corp. (WGS) Rose on Robust Customer Demand

Fred Alger Management, an investment management company, released its “Alger Small Cap Focus Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. Changing trade, monetary, and fiscal policies increased volatility in US stocks. The emergence of artificial intelligence (AI) models from China added to the uncertainty. Against this backdrop, the class A shares of the fund underperformed the Russell 2000 Growth Index. The Communication Services and Energy sectors contributed to the relative performance of the fund in the quarter, while the Health Care and Information Technology sectors detracted. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its first-quarter 2025 investor letter, Alger Small Cap Focus Fund highlighted stocks such as GeneDx Holdings Corp. (NASDAQ:WGS). GeneDx Holdings Corp. (NASDAQ:WGS) is a genomics company. The one-month return of GeneDx Holdings Corp. (NASDAQ:WGS) was -1.28%, and its shares gained 897.60% of their value over the last 52 weeks. On April 17, 2025, GeneDx Holdings Corp. (NASDAQ:WGS) stock closed at $95.47 per share with a market capitalization of $2.724 billion.

Alger Small Cap Focus Fund stated the following regarding GeneDx Holdings Corp. (NASDAQ:WGS) in its Q1 2025 investor letter:

"GeneDx Holdings Corp. (NASDAQ:WGS) is a specialty laboratory focused on genetic testing for the diagnosis of rare diseases, primarily targeting pediatric patients in neonatal intensive care units and those with developmental disorders. Currently, GeneDx offers three primary categories of testing: (1) whole exome/genome sequencing, (2) hereditary cancer screening, and (3) individual gene tests and smaller genetic panels. Shares contributed positively to performance during the quarter after the company reported strong fiscal fourth-quarter results, driven by robust customer demand. Additionally, management raised their fiscal 2025 revenue guidance, exceeding analyst estimates."

GeneDx Holdings Corp. (NASDAQ:WGS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held GeneDx Holdings Corp. (NASDAQ:WGS) at the end of the fourth quarter which was 19 in the previous quarter. While we acknowledge the potential of GeneDx Holdings Corp. (NASDAQ:WGS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we covered GeneDx Holdings Corp. (NASDAQ:WGS) and shared the list of high growth low debt stocks to invest in. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

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