Fred Alger Management, an investment management company, released its “Alger Weatherbie Specialized Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund focuses on investing in a portfolio of 50 small and mid-cap companies with promising growth potential. The US equity market ended the fourth quarter on a strong note, with the S&P surging 2.7%, maintaining its steady upward momentum. Investors’ optimism was supported by better-than-expected corporate earnings, the US Federal Reserve’s further interest rate easing stance, and a resilient macroeconomic backdrop. Improving clarity on trade policy provided additional support. Meanwhile, the quarter was characterized by increasing divergence below the Index’s surface. While AI remains the market’s biggest tailwind, it is being scrutinized for funding, limitations, and potential to return investment. The firm continues to observe secular trends that present attractive investment opportunities. Furthermore, U.S. business spending appears to be rising due to rising demand for AI infrastructure and tax incentives from the One Big Beautiful Bill. Against this backdrop, Class A shares of the Fund underperformed the Russell 2500 Growth Index in Q4 2025. The Real Estate and Consumer Staples contributed to the relative performance of the Fund in the quarter, while the Information Technology and Health Care sectors detracted from the performance. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Alger Weatherbie Specialized Fund highlighted stocks such as Glaukos Corporation (NYSE:GKOS). Glaukos Corporation (NYSE:GKOS) is an ophthalmic pharmaceutical and medical technology company. The one-month return of Glaukos Corporation (NYSE:GKOS) was -7.131%, and its shares gained 22.99% of their value over the last 52 weeks. On January 21, 2026, Glaukos Corporation (NYSE:GKOS) stock closed at $124.16 per share, with a market capitalization of $7.131 billion.
Alger Weatherbie Specialized Fund stated the following regarding Glaukos Corporation (NYSE:GKOS) in its fourth quarter 2025 investor letter:
“Glaukos Corporation (NYSE:GKOS) is an ophthalmic medical technology and pharmaceutical company focused on novel therapies for glaucoma, corneal disorders, and retinal diseases. Shares contributed positively after the company reported strong fiscal third-quarter results, as revenue growth accelerated to approximately 37% year-over year, driven by momentum in iDose, its flagship glaucoma product. The company also disclosed U.S. Food & Drug Administration (FDA) approval of its next-generation corneal health product, Epioxa, and indicated initial pricing was set materially above expectations, which was viewed as an incremental growth driver alongside the iDose ramp.”
Glaukos Corporation (NYSE:GKOS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 35 hedge fund portfolios held Glaukos Corporation (NYSE:GKOS) at the end of the third quarter, up from 26 in the previous quarter. In Q3 2025, Glaukos Corporation (NYSE:GKOS) reported consolidated net sales of $133.5 million, marking an increase of 38% on a reported basis or 37% on a constant currency basis. While we acknowledge the risk and potential of Glaukos Corporation (NYSE:GKOS) 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 Glaukos Corporation (NYSE:GKOS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Glaukos Corporation (NYSE:GKOS) and shared best medical device stocks to invest. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. This article is originally published at Insider Monkey.
