Digital Uprising ​
There has been a widespread shift from companies making physical investments to making digital investments, propelled further by the new work-from-home economy and the many changes it entails. What kind of companies stand to benefit from this evolution?​​​

The Digital Transformation Marches Onward​​​​​​

  • From 2015 through the middle of 2020, the proportion of digital investment has steadily climbed while physical investment has dwindled. Behind this divergence is increased business spending on research and development and enterprise software.

  • Potential beneficiaries include cybersecurity companies, software companies and cloud providers. Cloud-based cybersecurity solutions are in greater demand as Americans rely more heav​ily on digital interfaces for their work and home needs. Software systems that help businesses manage through critical events are also paramount now and may remain so going forward. Such a program can help keep track of employees, send alerts and automate various workflows. Software systems also facilitate telemedicine, which has gained enormously in popularity since the beginning of the crisis.

  • The Covid-19 pandemic has accelerated innovation in digital transformation, coming to the aid of individuals and businesses in need of digital solutions, and we believe this trend will persist even after the pandemic is over.

The views expressed are the views of Fred Alger Management, LLC (“FAM”) and its affiliates as of August 2020. 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 and healthcare 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 / 800.305.8547 (Retail) / 212.806.8869 (Institutional) ​​