Fred Alger Management released its “Alger Spectra Fund” Q4 2025 investor letter, highlighting a 2.7% surge in the US equity market. The firm observed increasing divergence below the Index’s surface, with AI as the market’s biggest tailwind. Class A shares underperformed the Russell 3000 Growth Index, impacted by sector performance in IT and Utilities.

In the Q4 2025 investor letter, Alger Spectra Fund discussed Microsoft Corporation (NASDAQ: MSFT), noting its -5.17% one-month return and 7.19% gain over 52 weeks. Microsoft operates through three segments and faced challenges with Azure cloud growth and forward guidance in the quarter. Management signaled increased investment to address capacity constraints and support AI/cloud workloads.

Alger Spectra Fund highlighted Microsoft Corporation (NASDAQ: MSFT) as the second most popular stock among hedge funds, with 312 portfolios holding it at the end of Q3 2025. Microsoft reported $77.7 billion in revenue for the first quarter of fiscal year 2026. While acknowledging Microsoft’s potential, the firm believes certain AI stocks offer greater upside potential and less downside risk.

For more insights on Microsoft Corporation (NASDAQ: MSFT) and other top stocks for 2026, visit Insider Monkey’s articles. Check out hedge fund investor letters for Q4 2025 for additional investment perspectives. Explore top Dow stocks for the next 12 months and unstoppable stocks that could double your money for more investing opportunities.

Read more at Yahoo Finance: Microsoft (MSFT) Traded Lower as Its Reported Azure Cloud Growth and Forward Guidance Fell Short of Expectations