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 Guardant Health, Inc. (NASDAQ:GH). Guardant Health, Inc. (NASDAQ:GH) is a precision oncology company. On January 16, 2026, Guardant Health, Inc. (NASDAQ:GH) stock closed at $112.14 per share. One-month return of Guardant Health, Inc. (NASDAQ:GH) was 10.66%, and its shares gained 205.89% of their value over the last 52 weeks. Guardant Health, Inc. (NASDAQ:GH) has a market capitalization of $14.564 billion.
Alger Small Cap Focus Fund stated the following regarding Guardant Health, Inc. (NASDAQ:GH) in its fourth quarter 2025 investor letter:
“Guardant Health, Inc. (NASDAQ:GH) is a molecular diagnostics company specializing in liquid biopsy tests for oncology applications. Unlike traditional tissue-based tests, Guardant’s liquid biopsies use blood samples, enabling faster results and improved patient comfort. The company’s tests include comprehensive genomic profiling, cancer diagnosis, and treatment monitoring. Shares contributed to performance after the company delivered strong fiscal third quarter operating results and raised full-year 2025 revenue guidance, signaling stronger-than-expected momentum across Oncology, Screening, and Biopharma & Data.”
