Fred Alger Management, an investment management company, has published its third quarter 2025 “Alger Spectra Fund” investor letter. A copy of the letter can be downloaded here. US stock markets continued their upward trajectory in the third quarter, with the S&P 500 index rising 8.12%. The combination of improving economic conditions, strong corporate profits and growing expectations for monetary easing led to this strong performance. Against this backdrop, the Fund’s Class A shares outperformed the Russell 3000 Growth Index during the third quarter of 2025. Additionally, please see the fund’s top five holdings for its top picks in 2025.
In its third quarter 2025 investor letter, Alger Spectra Fund highlighted stocks such as Netflix, Inc. (NASDAQ:NFLX). Incorporated in 1997, Netflix, Inc. (NASDAQ: NFLX) is an entertainment services provider. Netflix, Inc. (NASDAQ:NFLX)’s one-month return was -7.84% and its shares have gained 36.68% of their value over the past 52 weeks. On November 10, 2025, Netflix, Inc. (NASDAQ: NFLX) stock closed at $1,120.07 per share, with a market cap of $474.61 billion.
Alger Spectra Fund stated the following regarding Netflix, Inc. (NASDAQ: NFLX) in its Q3 2025 Investor Letter:
“Netflix, Inc. (NASDAQ: NFLX) is a global leader in streaming entertainment, offering premium video content through a subscription-based platform that now includes an ad-supported tier and selective live event programming. We believe Netflix is an attractive investment due to its ability to maintain strong engagement at scale, its pricing power, and its expansion into new revenue streams such as advertising and live events. In our view, management’s focus on consistent revenue growth and profitability, rather than key subscriber metrics, promotes a more predictable financial profile. During the quarter, shares fell as investors looked beyond strong second-quarter fiscal results and focused on full-year guidance and second-half profitability. Management’s full-year revenue increase is largely attributed to favorable exchange rate effects rather than stronger underlying demand, which missed expectations after strong year-to-date performance. Additionally, comments on increased investments in content and marketing in the second half of 2025 have dampened margin expectations, further reinforcing investor concerns. Despite these near-term headwinds, we believe Netflix remains well positioned due to its global scale, advertising initiatives and selective expansion into live programming. »
