Alger Spectra Fund shifted its largest sector weight from Technology to Consumer Discretionary before the Q2 selloff, signaling managers saw thinning upside in megacaps.
The Alger Spectra Fund trimmed its Information Technology overweight in the first half of 2026, a positioning that would have cushioned the portfolio during the late-Q2 tech rout.
Consumer Discretionary overtook Tech as the fund's largest sector weight by the end of June, according to the fund's second-quarter commentary. The shift implies Alger's managers saw thinning upside in mega-cap names that had driven most of the index's gains through April.
Neither Alger nor its parent firm disclosed exact sector allocations. The fund declined to say which individual holdings were trimmed or added.
The move mirrors a broader rotation out of growth and into value that gathered pace in May after a hotter-than-expected CPI print pushed the 10-year yield above 4.5%. Tech-heavy portfolios that held through the quarter absorbed a 7% drawdown in the Nasdaq 100 between mid-May and late June.
Alger's Consumer Discretionary bet lands on a mixed set of names. The sector includes Amazon, Tesla, and Home Depot – stocks that have diverged sharply on rate expectations. Amazon fell 9% in the quarter as cloud spending slowed. Tesla rose 3% on renewed China delivery momentum. Home Depot gained 5% on housing resilience.
Alger managed roughly $18 billion in assets at the end of the quarter, down from $22 billion at year-end 2025. The fund has not commented on Q3 positioning or current sector weights.
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