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 mentioned stocks like Planet Fitness, Inc. (NYSE:PLNT). Planet Fitness, Inc. (NYSE:PLNT) is a leading US-based franchise that operates fitness centers under the Planet Fitness brand. On May 22, 2026, Planet Fitness, Inc. (NYSE:PLNT) closed at $52.05 per share. One-month return of Planet Fitness, Inc. (NYSE:PLNT) was -21.81%, and its shares lost 50.62% over the past 52 weeks. Planet Fitness, Inc. (NYSE:PLNT) has a market capitalization of $4.13 billion.
Alger Weatherbie Specialized Growth Fund stated the following regarding Planet Fitness, Inc. (NYSE:PLNT) in its Q1 2026 investor letter:
“Planet Fitness, Inc. (NYSE:PLNT) is the largest fitness franchise in the United States, operating a high-value, low-cost gym model that has attracted over twenty million members through its accessible pricing and welcoming, judgment-free environment. The company generates revenue through franchise royalties, membership fees at corporate-owned clubs, and equipment sales to franchisees, creating a capital-light business model with strong recurring cash flow characteristics. We believe Planet Fitness benefits from a long runway of domestic and international unit growth, with management targeting a significantly larger club footprint over time. During the quarter, shares detracted from performance despite the company delivering better-than-expected fiscal fourth quarter results on both revenue and earnings. The primary headwind was management’s full-year guidance, which pointed to a deceleration in revenue growth relative to the prior year, falling short of consensus estimates and raising investor concerns about the pace of the company’s expansion trajectory. Weakening consumer sentiment and growing competition in the value fitness segment further weighed on the stock. Despite the near-term pressure, we believe Planet Fitness’s brand strength, considerable scale advantages, and continued unit growth provide a solid foundation for long-term value creation.”
Planet Fitness, Inc. (NYSE:PLNT) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 38 hedge fund portfolios held Planet Fitness, Inc. (NYSE:PLNT) at the end of the fourth quarter, up from 35 in the previous quarter. While we acknowledge the risk and potential of Planet Fitness, Inc. (NYSE:PLNT) 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 Planet Fitness, Inc. (NYSE:PLNT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Planet Fitness, Inc. (NYSE:PLNT) and shared the list of best health and fitness stocks to buy. Baron Small Cap Fund shared an optimistic view on Planet Fitness, Inc. (NYSE:PLNT) in its Q1 2026 investor letter. 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.
