The continuation of our “Think Further” brand campaign features data strategist Kenneth Cukier discussing “Big Data.” In addition, “The Analyst Conversations,” features Alger analysts discussing innovations that are disrupting sectors and industries, and creating investment opportunities for Alger’s clients.
In this commentary, Alger CEO and CIO Dan Chung remains optimistic on equities and in his market commentary discusses why stocks are likely to perform strongly this year.
"We continue to see a tremendous amount of change in the markets and a significant amount of innovation and disruption of traditional businesses." Alger Spectra Fund and Capital Appreciation Fund Portfolio Manager Patrick Kelly gives his update and his broader view on the markets.
Investors typically expect long/short equity funds to dampen overall portfolio volatility, but many of these funds appear to be long-only funds masquerading as lower volatility vehicles. The varying investment strategies in the Morningstar Long/Short Equity category have led to wide performance dispersion and investor confusion. We believe investors may be taking unrealized risks by misinterpreting high returns as a success factor.
Many U.S. active equity managers have struggled during the past few years with market conditions that have made it difficult to outperform benchmarks. Yet, Alger believes that conditions for active management are improving and that portfolio managers will be more likely to outperform in the foreseeable future.