Fred Alger Management, an investment management company, released its “Alger Spectra Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets continued their upward trajectory in the third quarter, with the S&P 500 Index rising 8.12%. A combination of improving economic conditions, solid corporate earnings, and growing expectations for monetary easing drove the strong performance. Against this backdrop, Class A shares of the Fund outperformed the Russell 3000 Growth Index during the third quarter of 2025. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Alger Spectra Fund highlighted stocks such as AppLovin Corporation (NASDAQ:APP). AppLovin Corporation (NASDAQ:APP) develops a software-based platform for advertisers to enhance the marketing and monetization of their content. The one-month return of AppLovin Corporation (NASDAQ:APP) was 8.14%, and its shares gained 129.37% of their value over the last 52 weeks. On November 10, 2025, AppLovin Corporation (NASDAQ:APP) stock closed at $651.32 per share, with a market capitalization of $220.117 billion.
Alger Spectra Fund stated the following regarding AppLovin Corporation (NASDAQ:APP) in its third quarter 2025 investor letter:
“AppLovin Corporation (NASDAQ:APP) is an advertising technology company offering a digital platform that helps mobile app developers market, monetize, and analyze their apps. We believe the company is experiencing a positive lifecycle change, driven by its AI-powered software engine. While currently focused on mobile gaming, AppLovin is expanding into other market segments. Its Demand Side Platform (DSP) supports ad placements, user acquisition, inventory matching, and performance analytics. Further, we believe AI is central to AppLovin’s growth, driving a large majority of the company’s revenue through its recommendation and targeting engine. In our view, AppLovin gains a competitive advantage, delivering higher value app installs by leveraging data from its game portfolio and developer partners. We believe this scale and data advantage enhances its network effect, improving its technology and boosting market share in mobile gaming. As developers use the platform, the company collects data that continuously refines its algorithms. Shares contributed positively to performance during the period due to strong operating results, which highlighted continued growth in its advertising platform and software business. Momentum further accelerated in September when AppLovin was added to the S&P 500 Index, a milestone that enhanced visibility and underscored the company’s growing market presence.”
