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 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.
Risk Disclosures: Investing in the stock market involves 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. Local, regional or global events such as environmental or natural disasters, war, terrorism, pandemics, outbreaks of infectious diseases and similar public health threats, recessions, or other events could have a significant impact on investments.
Past performance is not indicative of future performance. Investors whose reference currency differs from that in which the underlying assets are invested may be subject to exchange rate movements that alter the value of their investments.
Investing in innovation is not without risk and there is no guarantee that investments in research and development will result in a company gaining market share or achieving enhanced revenue. Companies exploring new technologies may face regulatory, political or legal challenges that may adversely impact their competitive positioning and financial prospects. Also, developing technologies to displace older technologies or create new markets may not in fact do so, and there may be sector-specific risks as well. As is the case with any industry, there will be winners and losers that emerge and investors therefore need to conduct a significant amount of due diligence on individual companies to assess these risks and opportunities.
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1The study took the oldest share class for all US-domiciled actively managed open-end equity funds in the Morningstar Direct database (including surviving and obsolete funds) during the 25 years ended December 31, 2019. The study then removed any fund with fewer than 10 holdings or less than 10 years of returns, along with any fund not categorized in the traditional US Morningstar nine-box style factors, emerging markets, foreign large capitalization, or foreign small-/mid-cap categories during the sample period, which produced a sample of 2,593 funds. Next, using each fund’s relevant Morningstar style benchmark, each fund’s cumulative net excess return over the sample period was calculated. Funds with a positive cumulative return, net of expense ratio, were labeled “outperformers,” resulting in 1,173 funds that outperformed. By category, the sample was made up of 83 US large-cap blend, 192 US large-cap growth, 88 US large-cap value, 27 US mid-cap blend, 85 US mid-cap growth, 24 US mid-cap value, 97 US small-cap blend, 156 US small-cap growth, 61 US small-cap value, 235 foreign large-cap, 48 foreign small-/mid-cap, and 77 diversified emerging market funds.
2Donoho, Crenian, Scanlan, 2010.
3Hao, Q., and X. Yan. “The Performance of Investment Bank-Affiliated Mutual Funds: Conflicts of Interest or Informational Advantage?” Journal of Financial and Quantitative Analysis, 2012.
Alger pays compensation to third party marketers to sell various strategies to prospective investors.
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