Alger Spectra Fund’s Q4 2025 Investor Letter

Fred Alger Management, an investment management company, released its “Alger Spectra Fund” fourth-quarter 2025 investor letter. The US equity market ended the fourth quarter on a strong note, with the S&P surging 2.7%, maintaining its steady upward momentum. Investors’ optimism was supported by better-than-expected corporate earnings, the US Federal Reserve’s further interest rate easing stance, and a resilient macroeconomic backdrop. Improving clarity on trade policy provided additional support. Meanwhile, the quarter was characterized by increasing divergence below the Index’s surface. While AI remains the market’s biggest tailwind, it is being scrutinized for funding, limitations, and potential to return investment. The firm continues to observe secular trends that present attractive investment opportunities.  Furthermore, U.S. business spending appears to be rising due to rising demand for AI infrastructure and tax incentives from the One Big Beautiful Bill. Against this backdrop, Class A shares of the Fund underperformed the Russell 3000 Growth Index in Q4 2025. The Information Technology and Utilities contributed to the relative performance of the Fund in the quarter, while the Health Care and Communication Services sectors detracted from performance. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

A copy of Alger Spectra Fund’s Q4 2025 investor letter can be downloaded here.