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 AppLovin Corporation (NASDAQ:APP). AppLovin Corporation (NASDAQ: APP) develops a software platform that enables advertisers to improve the marketing and monetization of their content. AppLovin Corporation (NASDAQ: APP)’s one-month return was 8.14% and its shares have gained 129.37% of their value over the past 52 weeks. On November 10, 2025, AppLovin Corporation (NASDAQ: APP) stock closed at $651.32 per share, with a market cap of $220.117 billion.
Alger Spectra Fund stated the following regarding AppLovin Corporation (NASDAQ: APP) in its Q3 2025 Investor Letter:
“AppLovin Corporation (NASDAQ: APP) is an advertising technology company providing a digital platform that helps mobile app developers market, monetize and analyze their apps. We believe the company is experiencing a positive change in its lifecycle, thanks to its AI-based software engine. Although currently focused on mobile games, AppLovin is expanding into other market segments. Its demand-side platform (DSP) supports ad placement, user acquisition, inventory matching, and performance analysis. Additionally, 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 by delivering higher value app installs by leveraging data from its game portfolio and developer partners. We believe this advantage in scale and data strengthens its network effect, improving its technology and increasing its market share in mobile gaming. As developers use the platform, the company collects data that continually refines its algorithms. The shares contributed positively to performance during the period due to strong operating results, which highlighted the continued growth of its advertising platforms and software business. Momentum accelerated further in September when AppLovin was added to the S&P 500 Index, a milestone that increased visibility and highlighted the company’s growing presence in the market.
