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 stocks like Legence Corp. (NASDAQ:LGN). Legence Corp. (NASDAQ:LGN) is an engineering and construction services provider that engages in the engineering, installation, and maintenance services for mission-critical systems in buildings. On May 22, 2026, Legence Corp. (NASDAQ:LGN) closed at $81.58 per share. One-month return of Legence Corp. (NASDAQ:LGN) was 0.18%, and YTD its shares gained 89.54%. Legence Corp. (NASDAQ:LGN) has a market capitalization of $13.4 billion.
Alger Weatherbie Specialized Growth Fund stated the following regarding Legence Corp. (NASDAQ:LGN) in its Q1 2026 investor letter:
“Legence Corp. (NASDAQ:LGN) is a specialty services company that provides engineering, consulting, installation, and maintenance for mission-critical building systems, serving customers across data centers, government facilities, life sciences, and other complex commercial environments. We believe the company is well positioned at the intersection of several durable demand drivers, as the growing complexity of modern building infrastructure requires increasingly specialized expertise. During the quarter, shares contributed positively to performance after the company delivered strong results highlighted by accelerating revenue growth, robust earnings expansion, and solid free cash flow generation. Management raised its full-year guidance meaningfully, reinforcing confidence in the trajectory of the business. Data center-related projects continued to be the primary driver of upside, while management noted encouraging strength in its government and life sciences end markets as well.”
Legence Corp. (NASDAQ:LGN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 40 hedge fund portfolios held Legence Corp. (NASDAQ:LGN) at the end of the fourth quarter, up from 37 in the previous quarter. In Q1 2026, Legence Corp.’s (NASDAQ:LGN) revenues grew 105% to a record $1.038 billion. While we acknowledge the risk and potential of Legence Corp. (NASDAQ:LGN) 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 Legence Corp. (NASDAQ:LGN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Legence Corp. (NASDAQ:LGN) and shared the list of best engineering stocks to buy in 2026. 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.
