Fred Alger Management, an investment management company, released its “Alger Mid Cap Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The letter highlighted the market outlook and top-performing and underperforming stocks. Equity markets continued their upward rally in the third quarter, with the S&P 500 Index up 8.12%. A confluence of improved economic conditions, strong corporate earnings, and anticipation of monetary easing drove the strong performance of the market in the quarter. The Class A shares of the fund outperformed the Russell Midcap Growth Index in the quarter. 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 Mid Cap Growth Fund highlighted stocks such as Verisk Analytics, Inc. (NASDAQ:VRSK). Verisk Analytics, Inc. (NASDAQ:VRSK) offers data analytics and technology solutions to the insurance industry. The one-month return of Verisk Analytics, Inc. (NASDAQ:VRSK) was -7.05%, and its shares lost 25.59% of their value over the last 52 weeks. On November 12, 2025, Verisk Analytics, Inc. (NASDAQ:VRSK) stock closed at $212.91 per share, with a market capitalization of $29.674 billion.

Alger Mid Cap Growth Fund stated the following regarding Verisk Analytics, Inc. (NASDAQ:VRSK) in its third quarter 2025 investor letter:

“Verisk Analytics, Inc. (NASDAQ:VRSK) is a leading provider of data analytics and risk assessment solutions serving the insurance, financial services, and energy industries. The company leverages extensive proprietary datasets to deliver predictive models, software, and decision-support tools that help clients manage risk, improve underwriting precision, and enhance operational efficiency. Its highly recurring revenue model is anchored by data subscriptions and analytics platforms embedded in core industry workflows. While the company reported strong fiscal second quarter earnings, shares detracted from performance as investors rotated toward more cyclical sectors, prompting outflows from defensive names such as Verisk. In our view, the stock’s relative weakness reflected a broader market preference for economically sensitive businesses over stable, defensive companies.”

Verisk Analytics, Inc. (NASDAQ:VRSK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 49 hedge fund portfolios held Verisk Analytics, Inc. (NASDAQ:VRSK) at the end of the second quarter, compared to 45 in the previous quarter. In the third quarter of 2025, Verisk Analytics, Inc. (NASDAQ:VRSK) generated $768 million in revenue, representing an increase of 5.9% from Q3 2024. While we acknowledge the potential of Verisk Analytics, Inc. (NASDAQ:VRSK) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.