Investors continue to underestimate AI. These are the next hot plays, says five-star manager

Site SearchClearSEARCHAdvanced Search ➔Search ResultsSymbolsNo results foundAll NewsArticlesVideoPodcasts0 ResultsNo Results FoundAuthorsNo results foundSectionsNo results foundColumnsNo results found Need to KnowInvestors continue to underestimate AI. These are the next hot plays, says five-star managerAlger’s Patrick Kelly says AI advances are only speeding upLast Updated: April 1, 2026 at 9:40 a.m. ETFirst Published: April 1, 2026 at 6:43 a.m. ETShareResizeListen(6 min)Investors continue to underestimate where AI is headed, says fund manager Patrick Kelly. Photo: MarketWatch/iStockphotoEven top-performing funds have been unable to escape the pressure from the Middle East conflict.The five-star Morningstar-rated Alger Focus Equity Fund ALAFX, which has been a top performer over three, five and ten years, dropped over 9% this year. About the Author Barbara KollmeyerBarbara Kollmeyer is based in Madrid, where she leads MarketWatch's pre-markets coverage of financial markets and writes the Need to Know column. She has worked in London and Los Angeles for MarketWatch previously. Follow her on Twitter @bkollmeyer.Show Conversation (0)Back To TopA Dow Jones CompanyCopyright © 2026 MarketWatch, Inc. All rights reserved.Terms of UsePrivacy NoticeCookie NoticeArchive MarketwatchCustomer CenterContact UsNewslettersNewsroom RosterVirtual Stock ExchangeMarketWatch GuidesCopyright PolicyManage NotificationsCancel My SubscriptionCompanyDow JonesCode of ConductCorrectionsReprints & LicensingDigital Self ServiceYour Ad ChoicesCorporate SubscriptionsAccessibilityDow Jones NetworkThe Wall Street JournalBarron'sInvestor's Business DailyFinancial News Londonrealtor.comMansion GlobalDow Jones Smart MoneyIntraday Data provided by FACTSET and subject to terms of use. Historical and current end-of-day data provided by FACTSET. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.