Fred Alger Management, an investment management company, released its “Alger Weatherbie Specialized Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund focuses on investing in a portfolio of 50 small and mid-cap companies with promising growth potential. 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 2500 Growth Index in Q4 2025. The Real Estate and Consumer Staples contributed to the relative performance of the Fund in the quarter, while the Information Technology and Health Care sectors detracted from the performance. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Alger Weatherbie Specialized Fund highlighted stocks such as FirstService Corporation (NASDAQ:FSV). FirstService Corporation (NASDAQ:FSV) is real estate services company that offers residential property management and other essential property services. On January 16, 2026, FirstService Corporation (NASDAQ:FSV) stock closed at $162.23 per share. One-month return of FirstService Corporation (NASDAQ:FSV) was 6.04%, and its shares lost 11.04% of their value over the last 52 weeks. FirstService Corporation (NASDAQ:FSV) has a market capitalization of $7.428 billion.
Alger Weatherbie Specialized Fund stated the following regarding FirstService Corporation (NASDAQ:FSV) in its fourth quarter 2025 investor letter:
“FirstService Corporation (NASDAQ:FSV) provides property and commercial building services through two segments: FirstService Residential, which offers residential property management services across North America, and FirstService Brands, which serves residential and commercial customers through franchise systems and company-owned operations. Shares detracted during the quarter as the market focused on weakness in the more cyclical Brands businesses— particularly restoration and roofing—where management cited tempered activity and a cautious outlook. That concern was reinforced on the third-quarter earnings call, when results were in line on earnings but light on revenue, and management pointed to weather-related and broader commercial macro headwinds weighing on the Brands segment and likely persisting into the next quarter, pressuring the stock despite relative resilience in Residential.”
FirstService Corporation (NASDAQ:FSV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 25 hedge fund portfolios held FirstService Corporation (NASDAQ:FSV) at the end of the third quarter, compared to 27 in the previous quarter. While we acknowledge the risk and potential of FirstService Corporation (NASDAQ:FSV) 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 FirstService Corporation (NASDAQ:FSV) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered FirstService Corporation (NASDAQ:FSV) and shared Fenimore Asset Management’s views on the company. In addition, please check out our hedge fund investor letters Q4 2025 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.
