Strong Results Boosted Guardant Health (GH) in Q2

Soumya Eswaran Tue, July 21, 2026 at 10:07 AM EDT 3 min read **

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Fred Alger Management**, an investment management company, released its "Alger Small Cap Focus Fund" second-quarter 2026 investor letter. A copy of the letter can be downloaded here. U.S. equities experienced a strong recovery in Q2 2026, with the S&P 500 Index gaining 15.2%, marking its best quarter since 2020. A ceasefire between the United States and Iran and accelerated investment in artificial intelligence (AI) fueled market optimism in the quarter, driving the Information Technology and Industrials sectors forward while Energy and Utilities lagged due to falling oil and gas prices. In June, the Federal Reserve maintained steady interest rates, but the meeting had a hawkish tone. As AI transitions into its agentic phase, opportunities are identified within sectors adopting the technology. The Alger Small Cap Focus Fund's Class A shares outperformed the Russell 2000 Growth Index in the quarter, driven by strong performances in the Industrials and Health Care sectors, while Financials and Consumer Discretionary detracted from the performance. In addition, please check the Fund's top five holdings to know its best picks in 2026.

In its Q2 2026 investor letter, Alger Small Cap Focus Fund highlighted Guardant Health, Inc. (NASDAQ:GH). Guardant Health, Inc. (NASDAQ:GH) is a precision oncology company that specializes in a liquid biopsy test to detect cancer from blood samples. On July 20, 2026, Guardant Health, Inc. (NASDAQ:GH) closed at $148.07 per share. One-month return of Guardant Health, Inc. (NASDAQ:GH) was 13.18%, and its shares gained 220.15% over the past 52 weeks. Guardant Health, Inc. (NASDAQ:GH) has a market capitalization of $19.63 billion.

Alger Small Cap Focus Fund stated the following regarding Guardant Health, Inc. (NASDAQ:GH) in its Q2 2026 investor update:

** "Guardant Health, Inc.** (NASDAQ:GH) is a precision oncology company that develops blood-based liquid biopsy tests spanning therapy selection, recurrence monitoring, and early cancer detection, anchored by its Guardant360, Reveal, and Shield platforms. We continue to view the company as one of the more strategically positioned names in molecular diagnostics, with leadership in liquid biopsy supported by a deep clinical evidence base, an expanding set of companion diagnostic labels, and a credible runway toward free cash flow breakeven. Shares contributed positively to performance during the quarter, advancing on first-quarter results that prompted management to raise full-year 2026 revenue guidance, the inclusion of the Shield blood test in updated colorectal cancer screening guidelines, and regulatory approval of Guardant360 CDx as a companion diagnostic for Boehringer Ingelheim's Hernexeos."

** Story Continues Guardant Health, Inc. (NASDAQ:GH) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 58 hedge fund portfolios held Guardant Health, Inc. (NASDAQ:GH) at the end of the first quarter, compared to 62 in the previous quarter. Guardant Health, Inc. (NASDAQ:GH) delivered $302 million of revenue in Q1 2026, representing 48% year-over-year growth. While we acknowledge the potential of Guardant Health, Inc. (NASDAQ:GH) 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 thebest short-term AI stock**.

In another article, we covered Guardant Health, Inc. (NASDAQ:GH) and shared the list of best large cap stocks to buy under $100. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.