Fred Alger Management, an investment management firm, released its Q4 2025 “Alger Weatherbie Specialized Fund” investor letter. A copy of the letter can be downloaded here. The fund focuses on investing in a portfolio of 50 small and mid-cap companies with promising growth potential. The US stock market ended the fourth quarter on a strong note, with the S&P rising 2.7%, maintaining its steady bullish momentum. Investor optimism was supported by better-than-expected corporate earnings, the U.S. Federal Reserve’s more easing interest rate stance, and a resilient macroeconomic backdrop. Improving trade policy clarity provided additional support. Meanwhile, the quarter was characterized by increasing divergence below the surface of the Index. While AI remains the biggest tailwind in the market, its financing, limitations, and potential to recover investment are being analyzed. The firm continues to observe secular trends that present attractive investment opportunities. Additionally, American business spending appears to be increasing due to growing demand for AI infrastructure and tax incentives from the One Big Beautiful Bill. Against this backdrop, the Fund’s Class A shares underperformed the Russell 2500 Growth Index in the fourth quarter of 2025. The real estate and consumer staples sectors contributed to the Fund’s relative performance in the quarter, while the information technology and healthcare sectors detracted from performance. Also, check out the Fund’s top five holdings to learn your best picks in 2025.
In its Q4 2025 investor letter, Alger Weatherbie Specialized Fund highlighted stocks like FirstService Corporation (NASDAQ:FSV). FirstService Corporation (NASDAQ:FSV) is a real estate services company providing residential property management and other essential real estate services. On January 16, 2026, shares of FirstService Corporation (NASDAQ:FSV) closed at $162.23 per share. FirstService Corporation (NASDAQ:FSV)’s monthly performance was 6.04% and its shares lost 11.04% of its value in the last 52 weeks. FirstService Corporation (NASDAQ:FSV) has a market capitalization of $7,428 million.
Alger Weatherbie Specialized Fund stated the following regarding FirstService Corporation (NASDAQ:FSV) in its Q4 2025 investor letter:
“FirstService Corporation (NASDAQ:FSV) offers commercial real estate and construction services through two segments: FirstService Residential, which provides residential property management services throughout North America, and FirstService Brands, which serves residential and commercial customers through franchise systems and company-owned operations. Shares detracted during the quarter as the market focused on weakness in Brands’ more cyclical businesses (particularly catering and roofing), where management cited subdued activity and a cautious outlook. That concern was reinforced on the third quarter earnings call, when results were in line with earnings but light on revenue, and management noted that weather-related and broader macro business headwinds were weighing on the Brands segment and would likely persist into the next quarter, pressuring the stock despite relative resilience in Residential.”
