Dear Investors,
October 2024 is a special month for Alger. We are proud to celebrate 60 years since opening our doors in 1964. I am writing to thank you for your continued partnership. Our mission today is the same as it was when Alger was founded: to generate strong performance that adds value to our clients’ portfolios. I also want to use this opportunity to reflect on the lessons we have learned these last six decades about both the markets and how we operate as a business, and where those lessons take us this year and beyond.
Growth Endures Over the Long Term Fred Alger coined the term “Positive Dynamic Change” 60 years ago to describe the companies that drive transformational, market-moving innovation in our world in which our investment team has sought to invest since day one.
Over these 60 years, we have invested through many booms and busts: we have managed portfolios through eight recessions, ten bear markets, and several of the longest bull markets in history. Through these economic ups and downs, Alger has driven strong long-term wealth creation for our clients as compared to the broad equity market and bonds.
We believe this is the case because our investment philosophy uniquely understands that dynamic companies embracing change and driving innovation offer unparalleled growth opportunities for investors. Also, that such investments require deep, fundamental research and analytical expertise from an investment team honed to the nuances, as well as the big picture, of investing in disruptive growth trends, emerging industries and, of course, the companies that define them.
Our Power Is in Our PeopleI got my break on Wall Street at Alger in 1994 when I joined the firm’s analyst training program. I experienced firsthand the exceptional analyst training we practice when we hire entry level talent and will not forget it. I also know what it means to be recognized for hard work and stock-picking performance while climbing the ranks, to earn more trust and responsibility. Ensuring that we maintain our meritocratic culture is central to my philosophy as CEO.
Sourcing talent to be successful at Alger requires that we are flexible and willing to hire from untraditional or non-finance backgrounds. At Alger, I have worked alongside former educators, doctors, engineers, performers, and law enforcement and military officers, to name a few. We are a firm that places immense importance on one’s ideas and drive rather than background. The resulting diversity of perspectives and experiences has been a source of strength for our firm, and I believe sets us apart.
As we have grown our business through the acquisitions of Weatherbie Capital in 2017 and Redwood Investments in 2024, we have gained access to even more incredible talent and insights. We are collectively proud that we have so seamlessly integrated our new colleagues into the Alger ecosystem.
There have been times when we have needed to draw strength from our firm’s humanity. On September 11, 2001, a great tragedy struck our nation and Alger, in particular. We lost our CEO David Alger and 34 employees that day—35 beloved members of our family whom we remember every day. With returning and new colleagues, and your support, we rebuilt this firm over the following years. This is why so many current and former Alger employees can measure their careers here in decades.
We are Stewards of Our Community While Alger’s power is its people, it is important that we give back where it matters most, to our employees and surrounding community. Our employees are the kind of people who bring forward causes they are passionate about, and Alger supports them on a larger scale.
Our “60 for 60” anniversary initiative exemplifies this. This year, Alger employees competed by dedicating their time and effort to volunteer activities in their communities. At the program’s conclusion, we tallied 990 charitable acts completed as a firm. It’s the perfect encapsulation of Alger—fierce but friendly competitiveness in the spirit of doing good.
Where We Go from Here: Optimism for Public Growth Equities What’s next? We have explored at length our belief that the most innovative companies can be found in the public markets despite a recent push at both institutional and retail levels into private markets. We continue to focus on investments in growth stocks, which can further fuel this innovative dynamic, as we have for 60 years. As life-changing technologies continue to surge ahead in fields like AI, genomics, and medical advances, as well as ecommerce and entertainment media, we maintain the conviction that our time-tested philosophy and process will continue to deliver.
A Note of Personal Gratitude Putting philosophy into practice requires trust and support. I am deeply grateful to our investors and my colleagues for continuing to stand alongside us over these 60 years. Thank you.
Our promises to each of you will always be the following:
- We will continue to work as hard as ever to continue earning your support,
- We will remain relentlessly curious and singularly focused on finding those areas in the market undergoing significant change, and
- We will do so in ways that represent our proud traditions of resilience, gratitude, and—above all—optimism. In other words, the Alger way.
Sincerely,
Dan
