Overview
- Fred Alger published Q2 investor letters on July 20–21 that summarized a strong quarter for U.S. equities, noting the S&P 500 gained 15.2% as investor sentiment improved after a U.S.–Iran ceasefire and renewed corporate investment in artificial intelligence.
- The Alger Weatherbie Specialized Growth Fund’s Class A shares outperformed the Russell 2500 Growth Index for Q2, with Information Technology and Industrials contributing to relative gains and Financials and Consumer Discretionary detracting.
- The letters singled out Silicon Motion Technology (SIMO) and Cardinal Infrastructure Group (CDNL) as top contributors, citing SIMO’s better‑than‑expected operating results tied to data‑center storage demand and CDNL’s strong organic growth and conservative guidance.
- Forte Biosciences (FBRX) was identified as a quarter detractor after a poorly received equity raise and delayed vitiligo data, though managers remained constructive ahead of expected celiac and vitiligo readouts later this year.
- The letters noted the Federal Reserve held rates in June but signaled a willingness to keep rates higher for longer, and they highlighted that upcoming company disclosures and clinical readouts are the next material drivers of fund performance.