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Alger Weatherbie Trails Benchmark in Q3 as Vertex Cuts Outlook and Artivion Raises Guidance

Stock-specific guidance shifts drove the fund's quarterly shortfall.

Overview

  • Fred Alger Management’s Q3 2025 letter reports that the S&P 500 rose 8.12% while the fund’s Class A shares underperformed the Russell 2500 Growth Index.
  • Vertex (VERX) dented returns after lowering full‑year revenue guidance, with management citing a softer demand environment and delays in ERP and software implementations despite Q2 revenue rising 14.6% year over year.
  • Artivion (AORT) aided performance after a strong fiscal Q2 and a raised full‑year outlook, supported by momentum in mechanical valves, uptake of a new aortic stent graft, and operating leverage.
  • SPS Commerce (SPSC) reported strong Q2 results, lifted its full‑year outlook, and announced a buyback, but shares fell after management trimmed its medium‑term organic growth rate due to more cautious customer spending and longer decision cycles.
  • Impinj (PI) contributed positively on stronger‑than‑expected Q2 results and an improved Q3 outlook, as management highlighted progress on large enterprise rollouts and accelerating pilots in food and grocery.