Fred Alger Management, an investment management company, released its “Alger Small Cap Focus Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The US equity market ended the fourth quarter on a strong note, with the S&P surging 2.7%, maintaining its steady upward momentum. Investors’ optimism was supported by better-than-expected corporate earnings, the US Federal Reserve’s further interest rate easing stance, and a resilient macroeconomic backdrop. Improving clarity on trade policy provided additional support. Meanwhile, the quarter was characterized by increasing divergence below the index level surface. The enthusiasm for AI investment is facing growing doubts due to bottlenecks, financing 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 Q4 2025, Class A shares of the Fund outperformed the Russell 2000 Growth Index. The Utilities and Financials sectors contributed to the relative performance of the Fund in the quarter, while the Consumer Discretionary and Information Technology sectors detracted from performance. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Alger Small Cap Focus Fund highlighted stocks such as UniQure N.V. (NASDAQ:QURE). UniQure N.V. (NASDAQ:QURE) is a biotechnology company that develops treatments for patients suffering from rare and other devastating diseases. The one-month return of UniQure N.V. (NASDAQ:QURE) was -8.57%, and its shares gained 62.56% of their value over the last 52 weeks. On November 18, 2025, UniQure N.V. (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 N.V. (NASDAQ:QURE) in its fourth quarter 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. Shares were highly volatile in 2025, surging after the company reported three-year Phase 1/2 data indicating meaningfully slower disease progression—approximately 75% versus a propensity-matched external control cohort. However, shares detracted during the quarter after U.S. Food and Drug Administration (FDA) feedback signaled that the external-control dataset may no longer be adequate as primary evidence to support an accelerated approval filing, increasing regulatory uncertainty and likely extending the timeline despite the encouraging efficacy signal.”
