| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 8.6% | 1.8% | 0.5% |
The Alger Weatherbie Specialized Growth Fund focuses on secular growth themes including corporate digitization, cloud computing expansion, and artificial intelligence at an inflection point. The fund outperformed its Russell 2500 Growth Index benchmark during Q4 2025, with strong contributions from biotechnology holdings Natera, ACADIA Pharmaceuticals, and Glaukos, which benefited from strong earnings, FDA approvals, and revenue growth acceleration. The portfolio maintains significant exposure to healthcare and industrials while being underweight information technology. Key detractors included FirstService Corp due to cyclical weakness in restoration and roofing businesses, and Kratos Defense amid government shutdown delays affecting cash receipts. The manager sees attractive opportunities driven by AI infrastructure investment, business spending acceleration from tax incentives, and continued Federal Reserve easing. However, risks include labor market softening, cautious consumer behavior, and housing market pressure. The fund's positioning reflects confidence in secular digitization trends while navigating near-term macro uncertainties through selective stock picking in small and mid-cap growth companies.
The fund focuses on secular growth themes including corporate digitization, cloud computing expansion, and artificial intelligence at an inflection point, while positioning in small and mid-cap companies with promising growth potential across healthcare, industrials, and technology sectors.
The manager maintains a constructive baseline for the S&P 500 Index while acknowledging mounting cross-currents in the macroeconomic backdrop. They continue to observe secular themes creating attractive investment opportunities, particularly around corporate digitization, cloud computing growth, and AI at an inflection point. U.S. business spending acceleration driven by AI infrastructure demand and tax incentives provides a supportive backdrop for their investment approach.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 15 2026 | 2025 Q4 | ACAD, AIR, FSV, GKOS, KTOS, NTRA | AI, Biotechnology, defense, growth, healthcare, industrials, small cap, technology |
NTRA ACAD GKOS FSV AIR KTOS |
The market's biggest tailwind was continued investment tied to artificial intelligence, though increasingly accompanied by scrutiny around AI infrastructure bottlenecks, sources of financing, and whether… |
| Oct 21 2025 | 2025 Q3 | AORT, PI, PLMR, SMTC, SPSC, VRTX | AI, Automation, Cloud, Digitization, small caps |
PI AORT SPSC PLMR VERX PI AORT SPSC PLMR VERX |
The fund underperformed as small- and mid-cap tech and health care names faced pressure amid shifting macro conditions. Managers remain focused on growth opportunities in… |
| Jul 22 2025 | 2025 Q2 | ACAD, NEO, NEOG, RXO, STRL, UPST | Compounding, earnings, growth, innovation, Resilience |
STRL UPST ACAD NEOG RXO NEO |
The letter focuses on companies with durable growth profiles benefiting from secular innovation, strong balance sheets, and expanding end markets. Management highlights disciplined stock selection… |
| Mar 31 2025 | 2025 Q1 | AGYS, PGNY, PLMR, SMTC, UPST, VSEC | - | - | - |
| Dec 31 2024 | 2024 Q4 | MEG, NEOG, NTRA, SMTC, TNDM, UPST | - | - | - |
| Sep 30 2024 | 2024 Q3 | HLNE, MEG, NTRA, PGNY, PRO, STEP | - | - | - |
| Jul 31 2024 | 2024 Q2 | GKOS, NTRA, PGNY, SITE, SPT, STEP | - | - | - |
| Apr 15 2024 | 2024 Q1 | ACAD, CWST, NTRA, NVRO, PI, XMTR | - | - | - |
| Dec 31 2023 | 2023 Q4 | ACAD, CLB, FLYW, NTRA, STEP, VERX | - | - | - |
| Sep 30 2023 | 2023 Q3 | AGTI, INSP, NOVT, OLLI, STEP, VERX | - | - | - |
| Jun 30 2023 | 2023 Q2 | INSP, NVRO, PI, PLNT, SITE, SPSC | - | - | - |
| Mar 31 2023 | 2023 Q1 | CHGG, FSV, MEG, SPSC, VERX, XMTR | - | - | - |
| Dec 31 2022 | 2022 Q4 | CLB, GDYN, GKOS, MEG, PI, XMTR | - | - | - |
| Sep 30 2022 | 2022 Q3 | AMRC, CLB, DH, DRQ, PI, SPSC | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
BiotechnologyAgronomics provides exposure to cellular agriculture and alternative protein production. BlueNalu focuses on cultured seafood with commercial launch expected in 2026. Liberation Bioindustries opening first commercial factory for alternative protein production. |
Cellular Agriculture Alternative Protein Biotechnology | |
CloudSnowflake was added as the leading player in cloud data storage, providing comprehensive data warehousing services for large businesses. The company's cloud-native platform helps companies store, analyze and share data across organizations, crucial for AI infrastructure upgrades. |
Data Storage Infrastructure Platform Enterprise | |
DefenseDefense positioning includes exposure to missiles, air defense and space through companies like Lockheed Martin, supported by large order backlogs providing strong long-term visibility amid heightened geopolitical tensions. |
Military Aerospace Geopolitical Security Infrastructure | |
| 2025 Q3 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
CloudSnowflake was added as the leading player in cloud data storage, providing comprehensive data warehousing services for large businesses. The company's cloud-native platform helps companies store, analyze and share data across organizations, crucial for AI infrastructure upgrades. |
Data Storage Infrastructure Platform Enterprise | |
Small CapsConcentrated portfolio of small-cap companies with limited sell-side coverage and institutional ownership. Invests where most institutional managers cannot or will not participate, allowing for asymmetric return potential. 44% of Russell 2000 stocks have zero Wall Street coverage, creating mispriced opportunities. |
Russell 2000 Limited Coverage Institutional Asymmetric Mispriced | |
| 2025 Q2 |
Growth |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 21, 2025 | Fund Letters | H. George Dai | VERX | Vertex Inc. | Information Technology | Application Software | Bear | NASDAQ | Bookings, Compliance, Demand, ERP, Guidance cut, Sales cycles, Tax software | Login |
| Jul 22, 2025 | Fund Letters | H. George Dai | STRL | Sterling Infrastructure, Inc. | Industrials | Construction & Engineering | Bull | NASDAQ | backlog, construction, Cyclical, datacenters, infrastructure | Login |
| Jul 22, 2025 | Fund Letters | H. George Dai | UPST | Upstart Holdings, Inc. | Financials | Consumer Finance | Bull | NASDAQ | AI, Credit, Fintech, growth, Lending | Login |
| Jul 22, 2025 | Fund Letters | H. George Dai | ACAD | Acadia Pharmaceuticals Inc. | Health Care | Biotechnology | Bull | NASDAQ | biopharma, growth, Neurology, Prescriptions, Raredisease | Login |
| Jul 22, 2025 | Fund Letters | H. George Dai | NEOG | Neogen Corporation | Health Care | Health Care Supplies | Bear | NASDAQ | Animals, diagnostics, Foodsafety, guidance, restructuring | Login |
| Jul 22, 2025 | Fund Letters | H. George Dai | RXO | RXO, Inc. | Industrials | Trucking | Bull | NYSE | Cyclical, efficiency, Freight, Logistics, Volumes | Login |
| Jul 22, 2025 | Fund Letters | H. George Dai | NEO | NeoGenomics, Inc. | Health Care | Life Sciences Tools & Services | Bull | NASDAQ | acquisition, diagnostics, guidance, Labs, Oncology | Login |
| Oct 21, 2025 | Fund Letters | H. George Dai | PI | Impinj Inc. | Information Technology | Semiconductor Equipment | Bull | NASDAQ | Adoption, Endpoints, Item-level tracking, operating leverage, Readers, RFID, supply chain | Login |
| Jan 15, 2026 | Fund Letters | H. George Dai | NTRA | Natera, Inc. | Health Care | Diagnostics & Research | Bull | NASDAQ | diagnostics, Genomics, growth, Oncology, Reimbursement | Login |
| Oct 21, 2025 | Fund Letters | H. George Dai | AORT | Artivion Inc. | Health Care | Medical Devices | Bull | NYSE | Aortic, cardiovascular, Devices, guidance, operating leverage, pipeline, Stent graft | Login |
| Jan 15, 2026 | Fund Letters | H. George Dai | ACAD | ACADIA Pharmaceuticals Inc. | Health Care | Biotechnology | Bull | NASDAQ | Biotech, CNS, FDA, growth, Orphan_Drugs | Login |
| Oct 21, 2025 | Fund Letters | H. George Dai | SPSC | SPS Commerce | Information Technology | Application Software | Bear | NASDAQ | Deceleration, Edi, guidance, Outlook, SaaS, Sales cycles, supply chain | Login |
| Jan 15, 2026 | Fund Letters | H. George Dai | GKOS | Glaukos Corporation | Health Care | Medical Devices | Bull | New York Stock Exchange | FDA, growth, innovation, Medical_Devices, Ophthalmology | Login |
| Oct 21, 2025 | Fund Letters | H. George Dai | PLMR | Palomar Holdings | Financials | Property & Casualty Insurance | Bear | NASDAQ | Catastrophe, combined ratio, guidance, Margins, premiums, specialty insurance, underwriting | Login |
| Jan 15, 2026 | Fund Letters | H. George Dai | FSV | FirstService Corporation | Real Estate | Real Estate Services | Bear | NASDAQ | Cyclicality, Macro, Property_Management, services, Weather | Login |
| Oct 21, 2025 | Fund Letters | H. George Dai | VERX | Vertex Inc. | Information Technology | Application Software | Bear | NASDAQ | Bookings, Compliance, Demand, ERP, Guidance cut, Sales cycles, Tax software | Login |
| Jan 15, 2026 | Fund Letters | H. George Dai | AIR | AAR Corp. | Industrials | Aerospace & Defense | Bear | New York Stock Exchange | Aerospace, aftermarket, Cyclicality, Defense, Governance | Login |
| Oct 21, 2025 | Fund Letters | H. George Dai | PI | Impinj Inc. | Information Technology | Semiconductor Equipment | Bull | NASDAQ | Adoption, Endpoints, Item-level tracking, operating leverage, Readers, RFID, supply chain | Login |
| Jan 15, 2026 | Fund Letters | H. George Dai | KTOS | Kratos Defense & Security Solutions, Inc. | Industrials | Aerospace & Defense | Bear | NASDAQ | cashflow, Defense, Drones, Government, Hypersonics | Login |
| Oct 21, 2025 | Fund Letters | H. George Dai | AORT | Artivion Inc. | Health Care | Medical Devices | Bull | NYSE | Aortic, cardiovascular, Devices, guidance, operating leverage, pipeline, Stent graft | Login |
| Oct 21, 2025 | Fund Letters | H. George Dai | SPSC | SPS Commerce | Information Technology | Application Software | Bear | NASDAQ | Deceleration, Edi, guidance, Outlook, SaaS, Sales cycles, supply chain | Login |
| Oct 21, 2025 | Fund Letters | H. George Dai | PLMR | Palomar Holdings | Financials | Property & Casualty Insurance | Bear | NASDAQ | Catastrophe, combined ratio, guidance, Margins, premiums, specialty insurance, underwriting | Login |
| TICKER | COMMENTARY |
|---|---|
| ACAD | Acadia Pharmaceuticals is a biopharmaceutical company focused on developing and commercializing medicines that address unmet needs in central nervous system (CNS) disorders. Its products include Nuplazid, for the treatment of hallucinations and delusions associated with Parkinson's disease psychosis, and Daybue, for Rett syndrome—a rare genetic disorder that affects brain development in children. Shares contributed positively during the quarter after the company reported better-than-expected third-quarter 2025 results that reinforced momentum across its two commercial franchises: Nuplazid saw solid demand and new patient activity, while Daybue posted strong referral trends. Sentiment was further supported late in the quarter by the FDA's approval of DAYBUE STIX, a new powder formulation, underscoring continued franchise investment. |
| AIR | AAR Corp. is a global aerospace and defense aftermarket services provider that supports commercial airlines and government customers through parts distribution and supply-chain solutions, as well as maintenance, repair, and overhaul services—an area we believe is structurally supported by high aircraft utilization and an aging fleet. During the quarter, shares detracted from performance amid investor uncertainty following the company's early-December announcement of a Chief Financial Officer transition; however, we believe underlying demand trends across AAR's end markets remain healthy. |
| FSV | FSV reported slower-than-expected results due to weather-related softness in its restoration business tied to roofing. We believe they have multiple avenues for reinvestment and that its management can generate shareholder value over the long term. |
| GKOS | Glaukos is an ophthalmic medical technology and pharmaceutical company focused on novel therapies for glaucoma, corneal disorders, and retinal diseases. Shares contributed positively after the company reported strong fiscal third-quarter results, as revenue growth accelerated to approximately 37% year-over-year, driven by momentum in iDose, its flagship glaucoma product. The company also disclosed U.S. Food & Drug Administration (FDA) approval of its next-generation corneal health product, Epioxa, and indicated initial pricing was set materially above expectations, which was viewed as an incremental growth driver alongside the iDose ramp. |
| KTOS | Kratos Defense & Security Solutions is a defense technology company focused on affordable unmanned systems, hypersonics and rocket systems, and satellite command-and-control, which we believe are increasingly aligned with U.S. and allied priorities around rapid fielding and scalable production. Kratos has invested deliberately in parts of the defense supply chain that we believe are increasingly critical to modern warfare and are now reaching an inflection point. Funding is beginning to flow into drone programs, demand for turbojet and turbofan engines is rising across unmanned aircraft and missile systems, and the company's C5ISR and space businesses continue to grow rapidly. While the company reported strong fiscal third-quarter operating results, shares detracted after management's fiscal fourth-quarter revenue outlook and free-cash-flow expectations came in below analyst estimates. Sentiment was further pressured by management commentary that cash receipts were being delayed due to the U.S. government shutdown, as well as ongoing cost headwinds tied to certain legacy unmanned contracts, which weighed on confidence in near-term margins and cash conversion. |
| NTRA | Not owning Natera, Inc. (NTRA) detracted from performance. The stock rose after its earnings announcement, signaling a strong revenue beat. |
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