Vertiv Holdings Co (VRT) Benefited from Accelerated Demand

Fred Alger Management, an investment management company, released its “Alger Mid Cap Focus Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets regained their strength in the second quarter of 2025. Class A shares of the fund outperformed the Russell Midcap Growth Index during the quarter. The Industrials and Energy sectors contributed to the relative performance of the strategy in the quarter, while Information Technology and Consumer Discretionary sectors detracted.  In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Alger Mid Cap Focus Fund highlighted stocks such as Vertiv Holdings Co. (NYSE:VRT). Vertiv Holdings Co. (NYSE:VRT) provides critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments. The one-month return of Vertiv Holdings Co. (NYSE:VRT) was 7.03%, and its shares gained 65.66% of their value over the last 52 weeks. On June 23, 2025, Vertiv Holdings Co. (NYSE:VRT) stock closed at $130.19 per share, with a market capitalization of $49.616 billion.

Alger Mid Cap Focus Fund stated the following regarding Vertiv Holdings Co (NYSE:VRT) in its second quarter 2025 investor letter:

“Vertiv Holdings Co (NYSE:VRT) specializes in critical cooling and power management infrastructure technologies, catering primarily to data center clients. As an industry leader in data center power and cooling solutions, we believe Vertiv is well-positioned to benefit from long term growth driven by increasing demand for AI and computing capabilities. During the quarter, shares contributed positively to performance after the company delivered strong first-quarter results, where revenues and earnings both exceeded analyst estimates driven by rising demand from AI-enabled data centers. Investor optimism was further fueled by upbeat guidance, with management raising full-year revenue estimates and signaling continued AI-driven growth in orders and backlog.”

Vertiv Holdings Co (VRT) Will Benefit From Data Center Spending, Says Jim Cramer

A close-up of a group of technicians working on complex data center systems.

Vertiv Holdings Co (NYSE:VRT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 90 hedge fund portfolios held Vertiv Holdings Co (NYSE:VRT) at the end of the first quarter, which was 92 in the previous quarter. While we acknowledge the risk and potential of Vertiv Holdings Co (NYSE:VRT) 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 Vertiv Holdings Co (NYSE:VRT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Vertiv Holdings Co (NYSE:VRT) and shared the list of buzzing stocks everyone is talking about. In addition, please check out our hedge fund investor letters Q2 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.