Fred Alger Management, an investment management company, released its “Alger Weatherbie Specialized Growth Fund” first-quarter 2026 investor letter. A copy of the letter can be downloaded here. In the first quarter of 2026, the Class A shares of the Alger Weatherbie Specialized Growth Fund underperformed the Russell 2500 Growth Index. The Information Technology and Consumer Staples sectors contributed to the relative performance, while Health Care and Financials detracted. US equities experienced volatility in the first quarter of 2026, with the S&P 500 Index falling 4.33%. The AI disruption and the U.S.-Iran conflict altered the economic landscape during this period. The Fund focuses on identifying companies that are leveraging AI technology for task automation and workflow management. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Alger Weatherbie Specialized Growth Fund highlighted AAR Corp. (NYSE:AIR) as a notable contributor. AAR Corp. (NYSE:AIR) is a leading aviation services company that provides aftermarket aviation solutions to commercial aviation, government, and defense markets. On May 22, 2026, AAR Corp. (NYSE:AIR) closed at $108.41 per share. One-month return of AAR Corp. (NYSE:AIR) was -1.62%, and its shares gained 81.41% over the past 52 weeks. AAR Corp. (NYSE:AIR) has a market capitalization of $4.31 billion.
Alger Weatherbie Specialized Growth Fund stated the following regarding AAR Corp. (NYSE:AIR) in its Q1 2026 investor letter:
“AAR Corp. (NYSE:AIR) is a diversified provider of aftermarket aviation services, offering parts supply, maintenance and repair, and integrated solutions to commercial airlines, government agencies, and defense customers worldwide. The company operates at the juncture of two durable demand drivers: a robust commercial aerospace aftermarket supported by strong global air travel demand, and a growing government and defense business that benefits from the increasing need for military operational readiness.
During the quarter, shares contributed positively to performance after the company delivered a strong fiscal third-quarter earnings report, with revenue, earnings, and profitability all exceeding expectations driven by solid organic growth, particularly in its parts supply business. Management also provided an encouraging fiscal year outlook, with commercial aviation demand continuing to hold firm despite geopolitical disruptions and defense-related activity providing a meaningful tailwind.”
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AAR Corp. (NYSE:AIR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 36 hedge fund portfolios held AAR Corp. (NYSE:AIR) at the end of the fourth quarter, up from 28 in the previous quarter. AAR Corp.’s (NYSE:AIR) total sales in the third quarter of fiscal 2026 grew 25% year-over-year to $845 million. While we acknowledge the risk and potential of AAR Corp. (NYSE:AIR) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAR Corp. (NYSE:AIR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered AAR Corp. (NYSE:AIR) and shared the list of undervalued aerospace and defense stocks to buy. In addition, please check out our hedge fund investor letters Q1 2026 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.
