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Sweeping Changes Create Health Care Opportunities
Innovation comes in waves and the last few years have brought us a major wave in treatments for cancer and orphan diseases.

In this Q&A, Alger Health Sciences Portfolio Manager Teresa McRoberts explains why now is an exciting time for using an active portfolio management strategy for Health Care investing and why the sector offers compelling value.

​Click here for more information on the Alger Health Sciences Fund.


The views expressed are the views of Fred Alger Management, Inc. These views are subject to change at any time and should not be interpreted as a guarantee of 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. 

 

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 developments. Investing in companies of small capitalizations involves the risk that smaller, newer issuers may have limited product lines or financial resources, or lack of management depth. Foreign invest-ing involves special risks including currency risk and risks related to political, social, or economic conditions. The strategy can leverage, that is, borrow money to buy additional securities. By borrowing money, the strategy has the potential to increase its returns if the increase in the value of the securities purchased exceeds the cost of borrowing, in-cluding interest paid on the money borrowed. The strategy concentrates its investments in the health sciences sector, the value of the strategy’s shares may be more volatile than similar strategies that do not have concentrated investments. Furthermore, because many of industries in the health sciences sector are subject to substantial government regulations, changes in applicable regulations could adversely affect companies in those industries. In addition, the comparative rapidity of product development and technologi-cal advancements in many areas of the sector may be reflected in greater volatility of the stock of companies operating in those areas. The strategy may invest in private equity. The sale of private equity investments may be limited or prohibited by contract or law. Private equity investments are generally fair valued as they are not traded frequently. The strategy may be required to hold such positions for several years, if not longer, regardless of valuation, which may cause the strategy to be less liquid. There are additional risks when investing in an active investment strategy, such as increased short term trading, additional transaction costs and potentially increased taxes that a shareholder may pay, which can lower the actual return on an investment.

©2017 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Morningstar percentile rankings are based on the total return percentile rank that includes reinvested dividends and capital gains (excluding sales charge) within each Morningstar Category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. If sales charges were included, performance would be lower and the rank may be lower.

Rankings and ratings may be based in part on the performance of a predecessor fund or share class and are calculated by Morningstar using a performance calculation methodology that differs from that used by Fred Alger Management, Inc.’s. Differences in the methodologies may lead to variances in calculating total performance returns, in some cases this variance may be significant, thereby potentially affecting the rating/ranking of the Fund(s). When an expense waiver is in effect, it may have a material effect on the total return or yield, and therefore the rating/ranking for the period.

Before investing, carefully consider the Fund’s investment objective, risks, charges, and expenses. For a prospectus and summary prospectus containing this and other information or for the Fund’s most recent month-end performance data, visit www.alger.com, call (800) 992-3863 or consult your financial advisor. Read the prospectus and summary prospectus carefully before investing. Distributor: Fred Alger & Company, Incorporated. Member NYSE Euronext, SIPC. NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE.

Founded in 1964, Fred Alger Management provides investment advisory services to institutional and individual investors through traditional and alternative strategies in a variety of products, including separate accounts, mutual funds and privately offered investment vehicles. For more information, please visit www.alger.com.