Fred Alger Management, an investment management company, released its “Alger Mid Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter of 2026, Class A shares of the Alger Mid Cap Focus Fund underperformed the Russell Midcap Growth Index in a volatile market environment. The Communication Services and Industrials sectors contributed to the fund’s performance while Health Care and Consumer Staples detracted. Two major influences changed the investing environment in the quarter. The software industry experienced significant disruption due to the rise of agentic artificial intelligence tools, whereas the U.S.-Iran conflict that began in late February sent the oil prices more than $100 per barrel for the first time in four years. The Fund identifies opportunities for companies that are adopting and facilitating the technology as it evolves into an agentic phase, despite the market’s focus on industries affected by AI advancements. 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 Mid Cap Fund highlighted stocks like Sea Limited (NYSE:SE). Sea Limited (NYSE:SE) is a Singapore-based consumer internet company, combining e-commerce, digital payment, and entertainment. On April 17, 2026, Sea Limited (NYSE:SE) stock closed at $91.33 per share. One-month return of Sea Limited (NYSE:SE) was -14.46%, and its shares lost 21.63% over the past twelve months. Sea Limited (NYSE:SE) has a market capitalization of $54.07 billion.
Alger Mid Cap Fund stated the following regarding Sea Limited (NYSE:SE) in its Q1 2026 investor letter:
“Sea Limited (NYSE:SE) is a leading internet platform company in Southeast Asia with dominant positions in e-commerce through Shopee, digital financial services, and gaming. Shopee has emerged as the region’s largest e-commerce platform, with market share approaching half of the Southeast Asian market, while also establishing itself as a credible competitor in Brazil with meaningful room to improve unit economics as the business scales. We believe Sea represents a compelling long-duration growth compounder given its substantial market opportunity and expanding competitive advantages. During the quarter, shares detracted from performance despite the company delivering strong fiscal fourth-quarter e-commerce results that exceeded expectations and guiding to continued robust sales growth in the year ahead. The headwind was a larger-than-expected reinvestment cycle, as management committed to deploying incremental cash flow into user acquisition, engagement, and structural cost initiatives rather than allowing profitability to expand. While we acknowledge the near-term earnings overhang, we believe these investments are being made from a position of strength, with management explicitly framing its guidance as a floor.”
Sea Limited (NYSE:SE) is ranks 35 on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 113 hedge fund portfolios held Sea Limited (NYSE:SE) at the end of the fourth quarter, up from 102 in the previous quarter. While we acknowledge the risk and potential of Sea Limited (NYSE:SE) 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 Sea Limited (NYSE:SE) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Sea Limited (NYSE:SE) and shared the list of stocks that will skyrocket when oil prices fall. 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.
