Unpacking the Q3 2025 Performance of the Alger Dynamic Opportunities Fund
Fund's Quarterly Performance: Underperforming the Benchmark
During the third quarter of 2025, the Alger Dynamic Opportunities Fund's Class A shares recorded a performance that trailed the broader S&P 500 Index. This outcome indicates that, for this specific period, the fund's investment strategies did not yield returns comparable to the overall market benchmark.
Key Drivers of Positive Performance: Top Contributing Holdings
Despite the overall underperformance, several long positions within the fund demonstrated strong positive contributions. These included AppLovin Corp., a company known for its mobile app growth platform; Nebius Group N.V., a technology firm whose specific operations were beneficial to the fund; and Talen Energy Corp, an energy company that positively impacted the portfolio during the quarter.
Factors Behind Negative Performance: Major Detracting Holdings
Conversely, certain long positions significantly hindered the fund's performance. James Hardie Industries, a global building materials company, was among the top detractors. TransDigm Group Incorporated, an aerospace component manufacturer, and Netflix, Inc., the streaming giant, also experienced declines that negatively affected the fund's returns. These holdings collectively contributed to the fund's underperformance relative to the S&P 500 Index for the quarter.