A “Growing” Industry​​​

Cannabis usage is growing and as more states, or perhaps even the Federal government, legalize it, consumption may increase even faster, potentially creating significant implications for investors.​​​

  • Support for legal marijuana has reached 68% in the U.S., the highest reading ever by Gallup. Recent polls have shown that legalization has majority support across gender, age, education and income groups. The pandemic has only whetted the appetites of Americans for cannabis with people using it more frequently on a weekly basis and consumption rising considerably among every demographic, according to data from Brightfield Group.

  • In November of 2020, voters in Arizona, New Jersey, Montana, South Dakota and Mississippi voted to legalize medical and/or recreational use. Recreational marijuana is now legal in 15 states and Washington D.C., while medical usage is legal in 35 states. On March 25, New York State completed a deal to legalize recreational marijuana, which could launch one of the largest markets in the country. Given cannabis’s growing support, it is possible that it could be legalized on the Federal level in the U.S.

  • We believe that significant opportunity may exist in companies that manufacture and distribute cannabis products, sell equipment and supplies to those producing product or provide technology solutions such as cannabis marketplaces.

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The views expressed are the views of Fred Alger Management, LLC (“FAM”) and its affiliates as of April 2021. These views are subject to change at any time and may not represent the views of all portfolio management teams. These views 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.

This material must be accompanied by the most recent fund fact sheet(s) if used in connection with the sale of mutual fund shares.

Risk Disclosure: Investing in the stock market involves certain risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. Technology companies may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies.​​

Fred Alger & Company, LLC 360 Park Avenue South, New York, NY 10010 

www.alger.com / 800.305.8547 (Retail) / 212.806.8869 (Institutional) ​​