Fred Alger Management, an investment management firm, published its Q4 2025 investor letter “Alger Small Cap Focus Fund.” A copy of the letter can be downloaded here. 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 level of the index. AI investment enthusiasm faces growing doubts due to bottlenecks, financial 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 the fourth quarter of 2025, the Fund’s Class A shares outperformed the Russell 2000 Growth Index. The utilities and financial sectors contributed to the Fund’s relative performance in the quarter, while the consumer discretionary and information technology sectors detracted from performance. Plus, check out the fund’s top five holdings to learn your best picks in 2025.
In its Q4 2025 investor letter, Alger Small Cap Focus Fund highlighted stocks like UniQure NV (NASDAQ:QURE). UniQure NV (NASDAQ:QURE) is a biotechnology company developing treatments for patients suffering from rare and other devastating diseases. UniQure NV (NASDAQ:QURE)’s monthly performance was -8.57% and its shares gained 62.56% of its value in the last 52 weeks. On November 18, 2025, UniQure NV (NASDAQ:QURE) stock closed at $22.84 per share, with a market capitalization of $1.42 billion.
Alger Small Cap Focus Fund stated the following regarding UniQure NV (NASDAQ:QURE) in its Q4 2025 investor letter:
“UniQure N.V. (NASDAQ:QURE) is a biotechnology company developing AMT-130, an investigational gene therapy for Huntington’s disease, an area with no approved disease-modifying treatments. The stock was very volatile in 2025, rising after the company reported three-year Phase 1/2 data indicating significantly slower disease progression – about 75% compared to a propensity-matched external control cohort. However, the stock declined during the quarter after comments from the U.S. Food and Drug Administration (FDA) noted that the external control data set may no longer be suitable as primary evidence to support an accelerated approval request, which would increase regulatory uncertainty and likely extend the timeline despite the encouraging efficacy signal.”
