Fred Alger Management, an investment management company, released its “Alger Spectra 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’s surface. While AI remains the market’s biggest tailwind, it is being scrutinized for funding, limitations, and potential to return investment. The firm continues to observe secular trends that present attractive investment opportunities.  Furthermore, U.S. business spending appears to be rising due to rising demand for AI infrastructure and tax incentives from the One Big Beautiful Bill. Against this backdrop, Class A shares of the Fund underperformed the Russell 3000 Growth Index in Q4 2025. The Information Technology and Utilities contributed to the relative performance of the Fund in the quarter, while the Health Care and Communication Services 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 Spectra Fund highlighted stocks such as Meta Platforms, Inc. (NASDAQ:META) as a leading detractor to performance. Meta Platforms, Inc. (NASDAQ:META) is a technology company that develops products to connect people. On January 16, 2026, Meta Platforms, Inc. (NASDAQ:META) stock closed at $620.25 per share. One-month return of Meta Platforms, Inc. (NASDAQ:META) was -6.24%, and its shares gained 1.22% of their value over the last 52 weeks. Meta Platforms, Inc. (NASDAQ:META) has a market capitalization of $1.56 trillion.

Alger Spectra Fund stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its fourth quarter 2025 investor letter:

“Meta Platforms, Inc. (NASDAQ:META) is the world’s largest social-media company, operating platforms that include Facebook, Instagram, WhatsApp, and Messenger. Shares detracted during the quarter as investors focused on management’s guidance for materially higher operating expenses and capital expenditures (CapEx) tied to AI infrastructure investments. Management noted that 2026 CapEx is expected to be “notably” higher than 2025, which pressured forward earnings and free-cash-flow expectations despite strong underlying results. While the company highlighted continued advertising momentum and indicated that revenue growth could remain robust into year-end, investors remained concerned about the magnitude and timing of the AI-related CapEx.”