Fred Alger Management, an investment management company, released its “Alger Small Cap Focus Fund” second-quarter 2026 investor letter. A copy of the letter can be downloaded here. U.S. equities experienced a strong recovery in Q2 2026, with the S&P 500 Index gaining 15.2%, marking its best quarter since 2020. A ceasefire between the United States and Iran and accelerated investment in artificial intelligence (AI) fueled market optimism in the quarter, driving the Information Technology and Industrials sectors forward while Energy and Utilities lagged due to falling oil and gas prices. In June, the Federal Reserve maintained steady interest rates, but the meeting had a hawkish tone. As AI transitions into its agentic phase, opportunities are identified within sectors adopting the technology. The Alger Small Cap Focus Fund’s Class A shares outperformed the Russell 2000 Growth Index in the quarter, driven by strong performances in the Industrials and Health Care sectors, while Financials and Consumer Discretionary detracted from the performance. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Alger Small Cap Focus Fund highlighted Forte Biosciences, Inc. (NASDAQ:FBRX). Forte Biosciences, Inc. (NASDAQ:FBRX), a US-based clinical-stage biopharmaceutical company, detracted from the Fund’s performance during the quarter. On July 20, 2026, Forte Biosciences, Inc. (NASDAQ:FBRX) closed at $47.49 per share, reflecting a market capitalization of $972.54 million. Forte Biosciences, Inc. (NASDAQ:FBRX) posted a one-month return of 161.65%, while its shares gained 355.32% over the past 52 weeks.
Alger Small Cap Focus Fund stated the following regarding Forte Biosciences, Inc. (NASDAQ:FBRX) in its Q2 2026 investor update:
“Forte Biosciences, Inc. (NASDAQ:FBRX) is a clinical-stage biopharmaceutical company developing FB102, an anti-CD122 monoclonal antibody with potential application across a range of autoimmune conditions, including celiac disease, vitiligo, and alopecia areata. We view Forte favorably given the differentiated mechanism underlying FB102 and its potential applicability across multiple sizeable indications, supported by encouraging early celiac data and a series of meaningful clinical readouts anticipated through the balance of the year. Shares detracted from performance during the quarter, pressured by an equity raise whose limited initial disclosure was poorly received, as well as by growing investor impatience as anticipated vitiligo data extended beyond the previously communicated timeline. Despite a challenging quarter, we remain constructive ahead of the celiac readout expected later this year and cautiously optimistic on the forthcoming vitiligo results. We believe FB102 retains meaningful strategic value as its clinical profile comes into clearer focus.”