The Power of Focus

With the popularity of focused strategies on the rise, Alger recently asked Greenwich Associates to explore the appetite for and popularity of focused strategies among institutional investors, investment consultants and retail fund intermediaries. We are pleased to share with you the resulting white paper, The Power of Focus: Looking for Alpha in a Sea of Beta.


 
Key findings from the study include
  • The need for increased alpha is driving the shift toward focused strategies
  • Proponents of focused strategies believe the best way to create alpha is to invest with managers who diverge from their benchmarks and allocate to their highest conviction ideas
  • Focused strategies typically exhibited lower risk, as measured by beta and down market capture, than strategies with a larger number of stocks
     
    View The Power of Focus: Looking for Alpha in a Sea of Beta
The Greenwich Associates 2017 Focused Strategies Study was sponsored by Fred Alger & Company, Inc. Fred Alger & Company, Inc. is not affiliated with Greenwich Associates, LLC, or its affiliates.​​​

Viewpoints

Read additional thought leadership from Alger analysts and investment strategists.


 
Understanding How Skill and Opportunity Drive Outperformance

Investors continually seek investment managers with potential to outperform. However, many managers struggle to explain why they believe their investing philosophies are superior, and many investors are not sure what drives outperformance. Alger’s philosophy of investing in Positive Dynamic Change is a unique and powerful combination of two variables that we believe drive excess returns: skill and opportunity.


View the whitepaper

 
Focused Portfolios: Swinging at the Right Pitches

Research suggests that managers’ highest conviction holdings outperform the more diversified fund products in which they are found. So why not cut to the chase and invest solely in portfolio managers’ best ideas? We believe research supports the merits of doing exactly that with focused portfolios.


View the whitepaper

Media

 
The Alger Podcast: Weatherbie Specialized Growth - A Focus on 50 Stocks

In this podcast, Weatherbie Senior Managing Director and Director of Research, Josh Bennett discusses how the W​eatherbie Specialized Growth Strategy evolved over time to focus on 50 stocks, and how Weatherbie's team process identifies the ideal companies for the portfolio​​.


Listen to the podcast


 
Alger on the Record Extra: The Power of Focus

In this Alger On the Record Extra video Client Portfolio Manager Kevin Collins explores how investors might meet their growing need for alpha. Many believe that focused strategies, investment strategies containing roughly 50 or fewer securities, effectively deliver alpha potential.


Watch the video


 
Alger on the Record: A Focused Approach to Innovation

Portfolio Manager Patrick Kelly discusses investing in innovation in this Alger on the Record video. As he notes in the video: We are in the early days of one of the most innovative times in history. Our in-depth fundamental research process focuses on investing in the companies that are capitalizing on innovation and avoiding those that are being disrupted.


Watch the video


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The Alger Podcast:  Small Cap Focus Update

In this podcast, Alger Small Cap Focus Portfolio Manager Amy Zhang, CFA, discusses her portfolio, her team process and recent volatility.


Listen to the podcast



 
Alger on the Record: The Weatherbie Way

Portfolio Manager Josh Bennett expounds on the investing principles that form the foundation of the Weatherbie way.


Watch the video


 
Barron's: Big Ideas, Small Stocks

Alger Small Cap Focus Portfolio Manager Amy Zhang is profiled in this Barron's article.


Read the article


Products

Learn more about Alger focus strategies.

 
Alger Small Cap Focus

Primarily invests in a focused portfolio of approximately 50 holdings of small cap companies identified through our fundamental research as demonstrating promising growth potential.


View strategy information

 
Alger Focus Equity Fund

Primarily invests in a focused portfolio of approximately 50 holdings of U.S. large cap companies identified through our fundamental research as demonstrating promising growth potential.


View strategy information

 
Weatherbie Specialized Growth

Primarily invests in a focused portfolio of approximately 50 holdings of small and mid cap companies identified through our fundamental research as demonstrating promising growth potential.


View strategy information

 
Alger 25

Primarily invests in a focused portfolio of approximately 25 holdings of companies of any capitalization identified through our fundamental research as demonstrating promising growth potential.


View strategy information


The views expressed are the views of Fred Alger Management, Inc. as of March 2018. These views are subject to change at any time and they do not guarantee the future performance of the markets, any security or any funds managed by Fred Alger Management, Inc. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities.

Risk Disclosure: Investing in the stock market involves gains and losses and may not be suitable for all investors. Growth stocks tend to be more volatile than other stocks, as the prices of growth stocks tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political and economic development.

Fred Alger & Company, Incorporated 360 Park Avenue South, New York, NY 10010 / www.alger.com

800.305.8547 (Retail) / 212.806.8869 (Institutional)

 

Contact Us


Financial Advisors
800.305.8547

Institutional Investors and Consultants
212.806.8869

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