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​Video: A Basket of Shorts - Recreational Vehicles​​​​

Alan Kirby's Photo

Alan C. Kirby, CAIA;

Senior Vice President
Client Portfolio Manager

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In this video, Alger Client Portfolio Manager, Alan Kirby, CAIA, discusses why the recreational vehicle industry may still provide shorting opportunities in the current economy.

ALAN KIRBY: Another short theme in the Alger Dynamic Opportunities strategy that might surprise some of our customers is Recreational Vehicles or “RVs”. Once again, we have approached this short theme with more than one position—a basket – as, we believe, shorting just a single company might prove volatile. 

But to understand this theme, we really have to go back to the height of the pandemic. 

Alger research shows that Recreational Vehicle end-demand surged during the stimulus-fueled pandemic rebound of the second half of 2020 and through 2021. In many respects, RVs represented the ultimate “social distancing” vacation during a time when many were at home and working remotely. Soon, dealer lots of new RVs were empty. As consumers looked to the used RV market, a group of companies that retro-fit used RVs by upgrading the interior, stove, plumbing, and dashboard – saw a significant boost in business. To the Alger Dynamic Opportunities team this surge in used RV upgrades seemed likely to be short-lived. And by year end 2022, the RV Industry Association had cut its wholesale RV shipment forecast for North America by 9% based on a moderation of demand. 

The hallmark of Alger’s growth equity investing is fundamental research—and we conducted numerous channel checks through industry contacts and brokers. We believe there may be continued softening of RV end-demand for the following reasons:

• Low consumer confidence regarding future RV shipments.
• Inflation, including RVs themselves with average selling prices up double digits.
• Higher interest rates, impacting RV purchases which may often be financed.
• The discretionary nature of this big-ticket purchase. An RV is not used for commuting to your job!

At Alger, the Dynamic Opportunities team continues to look for additional “basket” short themes as an offset to our well-research high conviction long positions.






In this video, Alger Client Portfolio Manager, Alan Kirby, CAIA, discusses why the recreational vehicle industry may still provide shorting opportunities in the current economy.

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The views expressed are the views of Fred Alger Management, LLC (FAM) and its affiliates as of September 2023. These views are subject to change at any time and may not represent the views of all portfolio management teams. These v​iews should not be interpreted as a guarantee of the future performance of the markets, any security or any funds managed by FAM. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities. Holdings and sector allocations are subject to change. 

Important Information for US Investors: This material must be accompanied by the most recent fund fact sheet(s) if used in connection with the sale of mutual fund and ETF shares. Fred Alger & Company, LLC serves as distributor of the Alger mutual funds.

Important Information for UK and EU Investors: This material is directed at investment professionals and qualified investors (as defined by MiFID/FCA regulations). It is for information purposes only and has been prepared and is made available for the benefit investors. This material does not constitute an offer or solicitation to any person in any jurisdiction in which it is not authorised or permitted, or to anyone who would be an unlawful recipient, and is only intended for use by original recipients and addressees. 

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Fred Alger Management, LLC 100 Pearl Street, New York, NY 10004 / 800.223.3810 ​/ www.alger.com



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