Fred Alger Management released its fourth-quarter 2025 investor letter for the Alger Small Cap Focus Fund. The U.S. equity market ended the quarter strongly, with the S&P 500 surging 2.7%. Investor optimism was supported by better-than-expected corporate earnings, the Federal Reserve's interest rate easing stance, and a resilient macroeconomic backdrop. Trade policy clarity provided additional support.
During the quarter, Class A shares of the Fund outperformed the Russell 2000 Growth Index. The Utilities and Financials sectors contributed to relative performance, while Consumer Discretionary and Information Technology detracted.
The letter highlighted Guardant Health, Inc. (NASDAQ:GH), a precision oncology company. On January 16, 2026, its stock closed at $112.14 per share. It had a one-month return of 10.66% and gained 205.89% over the last 52 weeks, with a market capitalization of $14.564 billion.
Alger Small Cap Focus Fund stated regarding Guardant Health: "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."
According to database information, 50 hedge fund portfolios held Guardant Health at the end of the third quarter, up from 46 in the previous quarter.