Fred Alger Management, an investment management company, released its “Alger Weatherbie Specialized Growth Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equities experienced increased volatility in the first quarter due to changing fiscal, monetary, and trade policies. Uncertainty arose from the emergence of advanced AI models from China. Against this backdrop, Class A shares of the fund underperformed the Russell 2500 Growth Index in the quarter. The Consumer Discretionary and Industrials sectors contributed to the fund’s performance in the quarter, while Health Care and Information Technology detracted. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Alger Weatherbie Specialized Growth Fund highlighted stocks such as Progyny, Inc. (NASDAQ:PGNY). Progyny, Inc. (NASDAQ:PGNY) is a benefits management company that focuses on fertility and family-building benefits solutions. The one-month return of Progyny, Inc. (NASDAQ:PGNY) was -1.55%, and its shares lost 16.32% of their value over the last 52 weeks. On June 17, 2025, Progyny, Inc. (NASDAQ:PGNY) stock closed at $21.53 per share, with a market capitalization of $1.846 billion.
Alger Weatherbie Specialized Growth Fund stated the following regarding Progyny, Inc. (NASDAQ:PGNY) in its Q1 2025 investor letter:
“Progyny, Inc. (NASDAQ:PGNY) is a leading benefits management company specializing in fertility and family building solutions. It serves a significant but underserved market through unique plan designs, coordinated clinical care, and a carefully selected provider network, resulting in superior clinical outcomes and cost savings. Infertility is a widespread issue, affecting one in eight U.S. couples, according to the Centers for Disease Control and Prevention. In our view, the company has successfully broken the pattern of weaker performance seen throughout 2024, which was partly driven by an Alabama state ruling to suspend in vitro fertilization (IVF) procedures—a restriction that was subsequently lifted. Shares contributed positively to performance during the quarter, following solid fiscal fourth-quarter operating results driven by an expanding client base and improving utilization trends. Additionally, management raised both fiscal first-quarter and full year 2025 revenue guidance above analyst estimates, citing member engagement trending back toward historical levels.”
A close up of a hand, fingers wrapped around a fertility specialist syringe.
Progyny, Inc. (NASDAQ:PGNY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Progyny, Inc. (NASDAQ:PGNY) at the end of the first quarter, which was 28 in the previous quarter. Progyny, Inc. (NASDAQ:PGNY) reported record revenue of $324 million in the first quarter of 2025, an increase of 16.5% from Q1 2024. While we acknowledge the potential of Progyny, Inc. (NASDAQ:PGNY) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In another article, we covered Progyny, Inc. (NASDAQ:PGNY) and shared Polen US SMID Company Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of PGNY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
