Fred Alger Management, an investment management company, released its “Alger Capital Appreciation Fund” first-quarter 2026 investor letter. A copy of the letter can be downloaded here. In the first quarter of 2026, the Class A shares of the Alger Capital Appreciation Fund underperformed the Russell 1000 Growth Index. The Information Technology and Financials sectors contributed, while Consumer Discretionary and Utilities detracted from the performance. US equities experienced a volatile period in the first quarter of 2026, with the S&P 500 Index declining 4.33%, driven by two distinct forces that transformed the investment landscape. The software industry experienced significant disruption due to the rise of agentic artificial intelligence tools. The second is the U.S.-Iran conflict that began in late February, causing a significant supply shock. This results in a surge in crude oil prices, injecting potential inflationary pressure into the economy. 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 Capital Appreciation Fund highlighted Vertiv Holdings Co (NYSE:VRT) as a notable contributor. Vertiv Holdings Co (NYSE:VRT) is a critical infrastructure solutions provider for data centers, communication networks, and commercial and industrial environments. On April 17, 2026, Vertiv Holdings Co (NYSE:VRT) closed at $307.34 per share. One-month return of Vertiv Holdings Co (NYSE:VRT) was 11.11%, and its shares gained 313.22% over the past 52 weeks. Vertiv Holdings Co (NYSE:VRT) has a market capitalization of $117.59 billion.
Alger Capital Appreciation Fund stated the following regarding Vertiv Holdings Co (NYSE:VRT) in its Q1 2026 investor letter:
“Vertiv Holdings Co (NYSE:VRT) specializes in critical cooling and power management infrastructure technologies, catering primarily to data center clients. We believe Vertiv is well positioned as a direct beneficiary of the accelerating data center buildout, where its broad portfolio of power and cooling solutions addresses essential requirements for both new construction and existing facility upgrades. During the quarter, shares contributed positively to performance after the company delivered strong fiscal fourth-quarter results and issued full-year revenue guidance well ahead of consensus expectations. Order growth and backlog expansion were particularly notable, reflecting the depth and durability of demand for data center infrastructure. We believe Vertiv’s scaled manufacturing capabilities, expanding backlog, and critical role within the data center supply chain position the company for sustained long-term growth.”
Vertiv Holdings Co (NYSE:VRT) ranks 38 on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 112 hedge fund portfolios held Vertiv Holdings Co (NYSE:VRT) at the end of the fourth quarter, up from 102 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 stocks on Jim Cramer discussed. 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.
