Fred Alger Management, an investment management company, released its “Alger Small Cap Focus Fund” first-quarter 2026 investor letter. A copy of the letter can be downloaded here. In the first quarter of 2026, the Class A shares of the Alger Small Cap Fund underperformed the Russell 2000 Growth Index. The Information Technology and Consumer Discretionary sectors contributed to the performance, while Health Care and Energy detracted from the performance. US equities experienced a volatile period in the first quarter of 2026, driven by AI disruption and the U.S.-Iran conflict that began in late February. The Fund identifies opportunities in companies that are adopting and facilitating the technology as it evolves into an agentic phase while navigating AI disruption challenges. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Alger Small Cap Focus Fund highlighted RBC Bearings Incorporated (NYSE:RBC) as a notable contributor. RBC Bearings Incorporated (NYSE:RBC) is an industrial company that focuses on manufacturing and marketing engineered precision bearings, components, and systems for aerospace, defense, and industrial markets. On May 1, 2026, RBC Bearings Incorporated (NYSE:RBC) closed at $595.76 per share. One-month return of RBC Bearings Incorporated (NYSE:RBC) was 7.85%, and its shares gained 73.79% over the past 52 weeks. RBC Bearings Incorporated (NYSE:RBC) has a market capitalization of $18.84 billion.
Alger Small Cap Focus Fund stated the following regarding RBC Bearings Incorporated (NYSE:RBC) in its Q1 2026 investor letter:
“RBC Bearings Incorporated (NYSE:RBC) is a leading manufacturer of highly engineered precision bearings and components that are essential to the operation of machines, aircraft, and mechanical systems across a wide range of applications. The company’s products reduce friction, minimize wear, facilitate power transmission, and control pressure and flow — all critical functions in demanding operating environments. RBC focuses on technically complex, regulated markets that require sophisticated design, testing, and manufacturing capabilities, and the company holds a market-leading position with sole source status on the vast majority of its products, providing a strong competitive moat. During the quarter, shares contributed positively to performance as the company benefited from multiple converging tailwinds, including an acceleration in commercial aircraft production, continued strength in the aerospace aftermarket, increased global defense spending, an early cyclical recovery in industrial end markets, and growing demand from the space sector. In our view, the company is executing well, with expanding profitability and strong free cash flow generation reinforcing our confidence in the durability of the long-term growth trajectory.”
