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| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
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Buyside Digest is not affiliated with, and does not endorse, Alger Weatherbie Specialized Growth Fund. This analysis is provided for institutional research purposes only and is not investment advice.
"The fund returned 29.56% in Q2 2026, outperforming its benchmark by focusing on small and mid cap companies enabling AI infrastructure as the technology enters its agentic phase. Record capital spending is flowing into data center ecosystem companies building, servicing, and powering compute capacity."
The Alger Weatherbie Specialized Growth Fund returned 29.56% in Q2 2026, outperforming the Russell 2500 Growth Index's 24.02% return. The fund's core thesis centers on identifying small and mid cap companies benefiting from AI infrastructure buildout as the technology enters its agentic phase, where systems move beyond generating answers to autonomously executing tasks. Record capital spending is flowing into AI-related infrastructure including processors, memory, cooling systems, and power generation, accelerating demand for compute capacity. Tax incentives from the One Big Beautiful Bill, allowing full-year deductions for eligible equipment, are propelling U.S. business investment. Top contributors included Cardinal Infrastructure Group, which benefits from essential infrastructure demand; Silicon Motion Technology, gaining share in data center storage tied to AI workloads; and DigitalOcean, positioning itself for inference and agentic AI workloads. Key risks include the Federal Reserve's hawkish stance with markets pricing in rate hikes, concerns around private credit exposure in alternative asset management, and pressure on discretionary consumer spending. The fund maintains a concentrated portfolio of approximately 50 holdings focused on companies enabling the AI infrastructure buildout.
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