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 MongoDB, Inc. (NASDAQ:MDB). MongoDB, Inc. (NASDAQ:MDB) is a software company that provides a general-purpose database platform. On April 17, 2026, MongoDB, Inc. (NASDAQ:MDB) stock closed at $252.73 per share. One-month return of MongoDB, Inc. (NASDAQ:MDB) was -3.10%, and its shares gained 74.57% over the past 52 weeks. MongoDB, Inc. (NASDAQ:MDB) has a market capitalization of $20.57 billion.
Alger Mid Cap Fund stated the following regarding MongoDB, Inc. (NASDAQ:MDB) in its Q1 2026 investor letter:
“MongoDB, Inc. (NASDAQ:MDB) is a modern database software company whose platform enables developers to store, manage, and access data using a flexible, document-oriented approach rather than the rigid table-based structure of traditional relational databases. This flexibility makes MongoDB particularly well suited for web and mobile applications, where the ability to handle diverse data types with speed and simplicity is essential. The company’s cloud-hosted database offering, Atlas, represents the majority of total revenue and continues to grow at an attractive pace, reflecting strong adoption among developers and enterprises alike. We believe MongoDB is well positioned to benefit from the proliferation of AI driven applications. While the company delivered a solid fiscal fourth-quarter report, shares detracted from performance as management’s initial full-year revenue guidance came in below consensus expectations, weighing on sentiment in an already challenging environment for software stocks. However, the company generates revenue primarily on a usage basis, which historically has led management to issue conservative initial guidance that was raised as the year progressed. We believe the market’s reaction overstates the significance of the guidance shortfall relative to the company’s long-term growth trajectory.”
MongoDB, Inc. (NASDAQ:MDB) is not on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 99 hedge fund portfolios held MongoDB, Inc. (NASDAQ:MDB) at the end of the fourth quarter, up from 89 in the previous quarter. In fourth quarter of fiscal 2026, MongoDB, Inc. (NASDAQ:MDB) reported revenue of $695 million, up 27% year-over-year. While we acknowledge the risk and potential of MongoDB, Inc. (NASDAQ:MDB) 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 MongoDB, Inc. (NASDAQ:MDB) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered MongoDB, Inc. (NASDAQ:MDB) and shared the list of best debt free stocks to buy. 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.
