​ ​​​
In this podcast, Portfolio Manager and Head of Alger Capital Appreciation and Spectra Strategies Patrick Kelly gives his update for the Alger Capital Appreciation, Capital Appreciation Focus, and Spectra strategies, as well as his broader outlook for the markets.

Key Points
  • The pace of innovation, including cloud computing, artificial intelligence and augmented reality, is accelerating and having an impact across sectors.​

  • Technology is playing a significant role in tempering inflation, and this is a positive tailwind for the U.S. economy.

  • Valuations on many of the secular growth companies remain attractive, and we continue to see good opportunities relative to bonds.

  • We continue to focus on companies that are benefiting from change and avoid those that are being disrupted.

Click here for more information on Alger Capital Appreciation Strategy.
Click here for more information on Alger Capital Appreciation Focus Strategy.
Click here for more information on Alger Spectra Strategy.
Click here for more information on The Alger American Asset Growth Fund.



Fred Alger & Company, Incorporated is the parent company of Fred Alger Management, Inc. The views expressed are the views of Fred Alger Management, Inc. as of July 2017. Fred Alger Management, Inc. is widely recognized as a pioneer of growth style investment management. Alger has used sources of information which it believes to be reliable; however, this publication is not intended to be and does not constitute investment advice. 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 should not be considered a recommendation to purchase or sell securities. Individual securities or industries/sectors mentioned, if any, should be considered in the context of an overall portfolio and therefore reference to them should not be construed as a recommendation or offer to purchase or sell securities. References to or implications regarding the performance of an individual security or group of securities are not intended as an indication of the characteristics or performance of any specific sector, industry, security, group of securities or a portfolio and are for illustrative purposes only. Stocks of the companies mentioned may or may not currently be held due to liquidity, inclusion in a benchmark, or in response to cash flows.

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. Investing in companies of all capitalizations involves the risk that smaller, newer issuers in which Alger invests may have limited product lines or financial resources or lack management depth.
Past performance is no guarantee of future results.
Certain Alger strategies may invest in stock issued by companies in foreign countries, including emerging markets. Special risks associated with investments in foreign country issuers, including issuers in emerging markets, include exposure to currency fluctuations, less liquidity, less developed or less efficient trading markets, lack of comprehensive company information, political instability and different auditing and legal standards. Foreign currencies are subject to risks caused by inflation, interest rates, budget deficits and low savings rates, political factors and government controls.

Companies discussed reflect the top holdings for various accounts in the strategy and is subject to change. Actual client holdings may vary. Portfolio holdings may change and stocks of companies noted may or may not be held by one or more Alger portfolios from time to time. Transactions in such securities may be made which seemingly contradict the references to them for a variety of reasons, including but not limited to, liquidity to meet redemptions or overall portfolio rebalancing.

The S&P 500 index is an unmanaged index generally representative of the U.S. stock market without regard to company size. Index performance does not reflect deductions for fees, expenses, or taxes. Investors cannot invest directly in any index.

The Strategy can leverage, and the cost of borrowing money to leverage could exceed the returns for the securities purchased or securities may actually go down in value; thus, the Strategy’s net asset value could decrease more quickly than if it had not borrowed. Unlike the Russell 3000 Growth Index, the Alger Spectra Strategy is an active investment strategy that is able to invest in companies of all sizes and sell securities short. In order to engage in a short sale, the Strategy arranges with a broker to borrow the security being sold short. In order to close out its short position, the Strategy will replace the security by purchasing the security at the price prevailing at the time of replacement. The Strategy will incur a loss if the price of the security sold short has increased since the time of the short sale and may experience a gain if the price has decreased since the short sale. The use of short sales could increase the Fund’s exposure to the market, magnifying losses and increasing volatility.

As of 6/30/2017, the following companies represented the noted percentage of Capital Appreciation Strategy assets: Alibaba Group Holding Ltd., 2.50%; Alphabet Inc., 5.35%; Amazon.com, Inc., 6.31%; Apple, Inc., 5.97%; Bank of America Corporation, 0.83%; Facebook, Inc., 4.53%; JPMorgan Chase & Co., 0.55%; Microsoft Corporation, 5.80%; Netflix, Inc., 0.64%; Nike, Inc., 0.25%; Gartner, Inc., 0.00%; and Tesla, Inc., 0.0%.

For U.S. Mutual Fund Investors: Before investing, carefully consider the Fund’s investment objective, risks, charges, and expenses. For a prospectus or summary prospectus containing this and other information about the Fund, call (800) 992-3863, visit www.alger.com, or consult your financial advisor. Read the prospectus carefully before investing. For a complete list of Fund portfolio holdings please visit www.alger.com. Distributor: Fred Alger & Company, Incorporated, Member NYSE Euronext, SIPC. NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE.

For Non-U.S. Investors: This information is furnished to you by Fred Alger Management, Inc. (“Fred Alger Management”). Alger Management, Ltd. serves as investment manager to the Alger SICAV - The Alger American Asset Growth Fund and Fred Alger Management serves as sub manager. Information related to the Alger SICAV is authorized for distribution only when accompanied or preceded by a current prospectus of the Alger SICAV, which contains more information about risks, charges and expenses. Please read the prospectus carefully before investing or sending money. Sales of shares in the Alger SICAV, the subject of this information, are made on the basis of the prospectus only and this information does not constitute an offer of shares in the Alger SICAV. An investment in the Alger SICAV entails risk, which are described in the prospectus. Investors may not get back the full amount invested and the net asset value of the Alger SICAV Fund will fluctuate with market conditions. Exchange rate fluctuations and Alger SICAV charges also affect the return to the investor. The holdings are subject to change. There is no assurance that the Alger SICAV objectives will be attained.

No shares in this Alger SICAV may be offered or sold to U.S. persons or in jurisdictions where such offering or sale is prohibited. U.S. persons include citizens or residents of the United States of America. For a proper definition of U.S. Person see the Alger SICAV prospectus. Investment in the Alger SICAV may not be suitable for all investors. Investors with any doubts with regard to suitability should contact their independent investment advisers. Nothing in this information should be construed as advice. Shares of the Alger SICAV are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including possible loss of the principal amount invested.

Important information for UK investors: The Alger SICAV does not have a place of business in the United Kingdom and is not authorized under the Financial Services Act 1986 (the “Act”). As a consequence, the regulatory regime governing an investor’s rights with respect to the Alger SICAV (and its similarly unauthorized overseas agents) will be different than that of the United Kingdom. Investors will not, for example, be entitled to compensation under the United Kingdom’s Investors Compensation Scheme. The Alger SICAV is an unregulated collective investment scheme under the laws of the United Kingdom and, therefore, can be promoted in the United Kingdom only to persons in accordance with the Act and the Financial Services (promotion of Unregulated Schemes) Regulations 1991 (the “Regulations”). Accordingly, this information may not be distributed in the United Kingdom other than to persons authorized to carry on investment business under the Act, persons whose ordinary business involves the acquisition and disposal of property of the same kind as the property or a substantial part of the property in which the Alger SICAV invests and persons permitted to receive this information under the Regulations. In addition, this information may not be issued or passed on in the United Kingdom to any person, other than to persons to whom the information may otherwise lawfully be issued, unless that person is of a kind described in Article 11(3) of the Financial Services Act of 1986 (Investment Advertisements) (Exemptions) Order 1996 (as amended).

Alger Management, Ltd. (company house number 8634056, domiciled 78 Brook Street, London W1K 5EF, UK) is authorised and regulated by the Financial Conduct Authority for the distribution of regulated financial products and services. La Française AM International has a signed agreement with Alger Management Ltd, whereby La Française AM International is authorized to distribute Fred Alger Management Inc. products in Europe.