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I think most of my industry peers have been closet indexers, managing the portfolio by underweighting and overweighting the index.  I do not manage by overweighting or underweighting the benchmark.  For us, it’s all about fundamental, bottom up stock selection.  
In our latest podcast, Alger Small Cap Focus Portfolio Manager Amy Zhang discusses her optimistic outlook for small cap growth equities and why she thinks market conditions are favorable for active portfolio managers.
Key Points
  • Synchronized global growth led by the U.S. can potentially support the ongoing bull market. 

  • The combination of higher interest rates, tax reform, and potential increases in inflation could provide a tailwind for small caps.

  • The recent increase in volatility is creating attractive investment opportunities for active portfolio managers.

CLICK HERE for more information on the Alger Small Cap Focus Strategy.

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.  

Small Cap Securities Risk – there may be greater risk in investing in companies with small market capitalizations rather than larger, more established issuers owing to such factors as more limited product lines or financial resources or lack of management depth. It may also be difficult or impossible to liquidate a security position at a time and price acceptable to the Fund because of the potentially less frequent trading of stocks of smaller market capitalization.

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.