Fred Alger Management, an investment management company, released its “Alger Small Cap Focus Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. 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 level surface. The enthusiasm for AI investment is facing growing doubts due to bottlenecks, financing challenges, and uncertainty over its ability to generate returns. The firm continues to observe secular trends that present attractive investment opportunities for small-cap stocks. In Q4 2025, Class A shares of the Fund outperformed the Russell 2000 Growth Index. The Utilities and Financials sectors contributed to the relative performance of the Fund in the quarter, while the Consumer Discretionary and Information Technology sectors detracted from 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 Small Cap Focus Fund highlighted stocks such as Exact Sciences Corporation (NASDAQ:EXAS). Exact Sciences Corporation (NASDAQ:EXAS) provides cancer screening and diagnostic test products. On January 16, 2026, Exact Sciences Corporation (NASDAQ:EXAS) stock closed at $102.43 per share. One-month return of Exact Sciences Corporation (NASDAQ:EXAS) was 0.60%, and its shares gained 97.97% of their value over the last 52 weeks. Exact Sciences Corporation (NASDAQ:EXAS) has a market capitalization of $19.453 billion.
Alger Small Cap Focus Fund stated the following regarding Exact Sciences Corporation (NASDAQ:EXAS) in its fourth quarter 2025 investor letter:
“Exact Sciences Corporation (NASDAQ:EXAS) is a molecular diagnostics company focused on oncology testing, best known for its Cologuard noninvasive colorectal cancer screening franchise, alongside a broader portfolio and pipeline that includes molecular residual disease (MRD) and multi-cancer early detection (MCED) testing initiatives. Shares contributed positively during the quarter after Abbott announced a definitive all-cash agreement to acquire Exact Sciences for approximately $21 billion in equity value, reflecting a meaningful premium and driving the stock higher.”
