Podcast: Capital Appreciation & Spectra Strategy Update

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 outlo​ok for the markets.

Key Points
  • The U.S. continues to lead the world economy in innovation and many of the most innovative companies remain U.S.-based.​​​​

  • The impact of digital transformation is playing out across all sectors, and companies will likely need to accelerate their IT spending to effectively compete.

  • We believe we are in the early innings of a "data inflection."  Artificial intelligence and big data have the pot​ential to create trillions of dollars in economic value.

  • We remain focused on identifying companies in the midst of positive dynamic change, and seek to capitalize on that change before it is recognized by the rest of the market.

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 August 2018. 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. 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 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 6/30/2018, the following companies represented the noted percentage of Capital Appreciation Strategy assets: Alphabet Inc., 4.62%; Amazon.com, Inc., 9.49%; Apple, Inc., 3.59%; Applied Materials, Inc., 1.33%; Bank of America Corp, 0.52%; Facebook, Inc., 5.07%; JPMorgan Chase & Co., 0.34%; Microsoft Corporation, 7.81%; Netflix, Inc., 0.92%; S&P Global, Inc., 1.32%; Salesforce.Com, Inc., 3.53%; AllianceBernstein, L.P., 0.0%; Evercore, Inc., 0.0%; Johnson and Johnson, 0.0%; SoftBank Group Corp, 0.0%; 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.

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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).​

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