Here's Alger Weatherbie Specialized Growth Fund's Comment on NeoGenomics (NEO)

Fred Alger Management, an investment management company, released its “Alger Weatherbie Specialized Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Initial volatility in April stemmed from increased trade policy uncertainty following President Trump's tariffs on April 2, which affected import-dependent companies. Stability returned on April 9 after a 90-day pause on new duties. Market sentiment improved in May following the White House’s suspension of reciprocal tariff hikes on China on May 12. In June, trade talks—featuring faster rare-earth shipments and delayed tariffs—helped the S&P 500 reach a record high, ending Q2 with a 10.94% gain.  Class A shares of the fund outperformed the Russell 2500 Growth Index during the second quarter of 2025. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Alger Weatherbie Specialized Growth Fund highlighted stocks such as NeoGenomics, Inc. (NASDAQ:NEO). Headquartered in Fort Myers, Florida, NeoGenomics, Inc. (NASDAQ:NEO) is a network of clinical laboratories that focuses on cancer testing. The one-month return of NeoGenomics, Inc. (NASDAQ:NEO) was 14.83%, and its shares lost 45.66% of their value over the last 52 weeks. On September 23, 2025, NeoGenomics, Inc. (NASDAQ:NEO) stock closed at $8.13 per share, with a market capitalization of $1.05 billion.

Alger Weatherbie Specialized Growth Fund stated the following regarding NeoGenomics, Inc. (NASDAQ:NEO) in its second quarter 2025 investor letter:

"NeoGenomics, Inc. (NASDAQ:NEO) remains the leading pure-play provider of specialty oncology lab testing services, serving hospitals, oncologists, and pathologists. We believe the company’s competitive advantage stems from its extensive testing menu, ability to serve as a comprehensive one-stop solution, strong commercial presence, trusted reputation among pathologists, and nationwide laboratory footprint. During the quarter, shares detracted from performance after the company reported slightly weaker-than-expected revenues, although it exceeded consensus estimates for earnings before interest, taxes, depreciation, and amortization (EBITDA). Management noted that the revenue shortfall was primarily attributed to weakness in non-clinical segments, such as pharma services, reflecting broader cyclical pressures from reduced funding in the biopharma industry. Nevertheless, the company reaffirmed its full-year 2025 organic revenue guidance, while total revenue guidance was slightly increased to reflect a recent acquisition."

NeoGenomics, Inc. (NASDAQ:NEO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held NeoGenomics, Inc. (NASDAQ:NEO) at the end of the second quarter, which was 17 in the previous quarter. NeoGenomics, Inc. (NASDAQ:NEO) reported revenue of $181 million in the second quarter 2025, an increase of 10% over prior year. While we acknowledge the potential of NeoGenomics, Inc. (NASDAQ:NEO) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered NeoGenomics, Inc. (NASDAQ:NEO) and shared Brown Advisory Small-Cap Growth Strategy's views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.