A Look Back: Alger International Opportunities Fund Navigates Q3 2025

Well, what an interesting three months it has been, truly! As we reflect on the third quarter of 2025, it’s clear that the global investment landscape continued its fascinating dance of challenges and opportunities, keeping us all on our toes. Here at Alger, we're pleased to share our insights into how the International Opportunities Fund performed, and frankly, what we're seeing out there in the world markets.

During Q3 2025, the Fund delivered a respectable performance, navigating through a period marked by some rather complex macroeconomic crosscurrents. You know, inflation continued to be a sticky subject in several major economies, even as central banks hinted at a potential softening of their hawkish stances. We saw persistent, albeit uneven, global growth, driven significantly by innovation in technology and the ongoing digital transformation across industries. But let’s be real, geopolitical tensions, though not always directly impacting daily market moves, certainly kept a low hum of uncertainty in the background, influencing investor sentiment here and there.

Our investment philosophy, as you know, centers on identifying high-conviction, innovative growth companies with strong competitive advantages, no matter where they are in the world. This quarter, our focus on businesses poised to capitalize on long-term structural trends truly paid off. For instance, companies deeply embedded in the artificial intelligence ecosystem – those developing foundational models, specialized hardware, or AI-driven solutions for various sectors – showed remarkable resilience and growth. We also saw promising developments in areas like sustainable energy infrastructure and advancements in healthcare technology, which continued to be bright spots for the portfolio.

Of course, it wasn't all smooth sailing. There were certain regional markets that faced headwinds, perhaps due to specific domestic policy changes or temporary shifts in consumer spending patterns. And, as always, some individual holdings encountered company-specific challenges. This is precisely why our rigorous fundamental research and active management approach are so critical. It allows us to be agile, to prune positions when necessary, and to double down on our strongest convictions, ensuring we’re always aiming to maximize long-term value for our investors.

Looking ahead, as we transition into the final quarter of 2025 and beyond, our conviction in the power of innovation and structural growth themes remains unwavering. We anticipate continued volatility, for sure – that’s just the nature of international markets, isn't it? However, we believe this volatility often creates compelling entry points for those with a long-term perspective. We're closely monitoring global monetary policy shifts, potential breakthroughs in new technologies, and evolving geopolitical dynamics to identify where the next waves of growth might emerge.

The team is excited about the prospect of uncovering new opportunities in burgeoning markets and established economies alike, always seeking those truly exceptional companies that are shaping the future. We remain committed to our disciplined, growth-oriented strategy, meticulously selecting companies that we believe are best positioned to thrive in an ever-changing world. Thank you for your continued trust and partnership with the Alger International Opportunities Fund.