Fred Alger Management released the fourth-quarter 2025 investor letter for its Alger Small Cap Focus Fund. The U.S. equity market finished the quarter strongly, with the S&P 500 rising 2.7%. Corporate earnings that exceeded expectations, further interest rate easing by the Federal Reserve, and a resilient macroeconomic environment supported investor optimism. Clarity on trade policy also provided support.
During the quarter, Class A shares of the Fund performed better than the Russell 2000 Growth Index. The Utilities and Financials sectors added to the Fund's relative performance, while the Consumer Discretionary and Information Technology sectors reduced it.
The letter highlighted Exact Sciences Corporation (NASDAQ:EXAS), a company providing cancer screening and diagnostic tests. On January 16, 2026, its stock closed at $102.43 per share. Over one month, the return was 0.60%, and over the past 52 weeks, the shares gained 97.97%. The company's market capitalization is $19.453 billion.
Regarding Exact Sciences, the fund stated: "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."
According to database information, 52 hedge fund portfolios held Exact Sciences at the end of the third quarter, an increase from 50 in the prior quarter.