Alger Mid Cap Growth Fund Highlights Astera Labs and Robinhood in Q3 Investor Letter

Overview

• Fred Alger Management released its third‑quarter 2025 letter, noting a continued equity rally with the S&P 500 up 8.12% as the fund’s Class A shares beat the Russell Midcap Growth Index.
• Astera Labs reported Q3 2025 revenue of $230.6 million, up 20% sequentially and 104% year over year, after raising near‑term guidance with P‑series switches driving growth and X‑series expected by management to contribute materially beginning in 2026.
• Robinhood posted approximately $1.3 billion in Q3 2025 revenue, more than doubling year over year, as new offerings such as Robinhood Strategies, Banking and the AI‑driven Cortex supported stronger operating results.
• Insider Monkey’s database showed rising hedge‑fund ownership into the end of Q2, with Astera Labs in 56 portfolios (up from 45) and Robinhood in 85 (up from 76).
• The letter said stock selection powered relative gains, while detractors included Verisk Analytics as investors rotated toward more cyclical sectors.