Fred Alger Management, an investment management firm, released its Q3 2025 “Alger Mid Cap Growth Fund” investor letter. A copy of the letter can be downloaded here. The letter highlighted the market outlook and high- and low-performing stocks. Stock markets continued their rally in the third quarter, with the S&P 500 index rising 8.12%. A confluence of improving economic conditions, strong corporate earnings and anticipation of monetary easing fueled the market’s strong performance in the quarter. The fund’s Class A shares outperformed the Russell Midcap Growth Index during the quarter. Plus, check out the fund’s top five holdings to learn your best picks in 2025.
In its Q3 2025 investor letter, Alger Mid Cap Growth Fund highlighted stocks like Robinhood Markets, Inc. (NASDAQ:HOOD). Robinhood Markets, Inc. (NASDAQ:HOOD) is a financial services platform that allows users to invest in stocks, exchange-traded funds (ETFs), American depositary receipts, options, gold, and cryptocurrencies. Robinhood Markets, Inc. (NASDAQ:HOOD)’s monthly performance was 1.17% and its shares gained 312.73% of its value in the last 52 weeks. On November 12, 2025, Robinhood Markets, Inc. (NASDAQ:HOOD) stock closed at $132.98 per share, with a market capitalization of $119.574 billion.
Alger Mid Cap Growth Fund stated the following regarding Robinhood Markets, Inc. (NASDAQ:HOOD) in its Q3 2025 investor letter:
“Robinhood Markets, Inc. (NASDAQ:HOOD) is a consumer-focused financial platform offering commission-free trading on stocks, options, futures, and cryptocurrencies, plus retirement investing and subscription benefits through Robinhood Gold. In 2025, the company also expanded into wealth management with Robinhood Strategies (expert-managed portfolios) and announced Robinhood Banking and Robinhood Cortex as part of a broader push to offer in-app advisory, banking, and AI tools. With more than 25 million accounts, Robinhood has about 15% to 20% market share among brokerage accounts, but only about 0.3% of the $70 trillion in investable assets of American households, according to management. The stock contributed positively to relative performance in the period after the company reported strong operating results, with revenue and earnings exceeding analyst estimates.”
Robinhood Markets, Inc. (NASDAQ:HOOD) isn’t on our list of the 30 most popular stocks among hedge funds. According to our database, Robinhood Markets, Inc. (NASDAQ:HOOD) had 85 hedge fund portfolios at the end of the second quarter, compared to 76 in the previous quarter. Robinhood Markets, Inc. (NASDAQ:HOOD) reported revenue of $1.3 billion in the third quarter of 2025, indicating more than 100% year-over-year growth. While we recognize the potential of Robinhood Markets, Inc. (NASDAQ:HOOD) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.