Alger has launched Alger AI Enablers & Adopters, a focused portfolio of companies actively involved in developing and implementing Artificial Intelligence technologies, and Alger Concentrated Equity a focused portfolio of 20-30 stocks representing the highest conviction investment ideas of portfolio manager Dr. Ankur Crawford.
NEW YORK, April 8, 2024 /PRNewswire-PRWeb/ -- Fred Alger Management, LLC ("Alger"), a privately held $25.7 billion growth equity investment manager, today announced the launch of two high-conviction portfolios: Alger AI Enablers & Adopters and Alger Concentrated Equity. Both strategies are available as ETFs, mutual funds, and separate accounts.
Alger AI Enablers & Adopters, managed by Patrick Kelly, CFA, is a focused portfolio of companies actively involved in developing and implementing Artificial Intelligence (AI) technologies. Enablers are companies developing the building block components for and investing in AI infrastructure such as machinery, hardware, software, and services. Adopters are companies that integrate AI into their businesses to enhance their products or services or make their operations more productive.
"We believe AI is a massive total addressable market that extends across industries, companies and regions marking the early stages of a computing revolution. In our view, organizations that embrace AI technologies better position themselves to drive sustainable growth in the digital age. Advancements in connectivity, computing speed, and algorithms are accelerating the pace of AI adoption, and we anticipate substantial opportunities for companies effectively leveraging these advancements," said Patrick.
Alger Concentrated Equity is a focused portfolio of 20-30 stocks representing the highest conviction investment ideas of portfolio manager Dr. Ankur Crawford. The portfolio is nimble, sector agnostic and is considered "non-diversified," which enables Ankur to overweight her highest conviction names without traditional mutual fund construction constraints.
"I believe we are at the beginning of the next technological "megacycle" that will drive productivity, spending, and growth for the next 10 or more years. The innovation and growth we are seeing today has the strong potential to filter into the entire economy and affect our lives in ways that may be surprising," said Ankur. "The Concentrated Equity strategy enables us to invest in companies across all sectors that are riding the wave of an economic shift that we foresee occurring. Our core philosophy is to invest in companies undergoing Positive Dynamic Change, those that are leaders and innovators with wide moats and strong management teams that drive multi-year growth of earnings per share (EPS) and free cash flow," she continued.
These new strategies leverage Alger's rich, 60-year history of investing in growth by identifying companies experiencing Positive Dynamic Change.
"For six decades, we have been focused on identifying companies on the cutting edge of growth and change that have the potential to become future market leaders. It is a thrilling time to be an investor today as the pace of innovation continues to drive opportunities for long-term growth," said CEO and Chief Investment Officer Dan Chung.
"The expansion of our investment platform through these two new strategies is the direct result of hearing from our clients looking for differentiated investment opportunities," said Alger's President and Chief Distribution Officer Christoph Hofmann. "Importantly, by offering these strategies in mutual funds, ETFs and separate accounts, we are providing investment professionals with the utmost flexibility in building their clients' portfolios."
Alger AI Enablers & Adopters ETF (ALAI) and mutual fund (Class Z: AAIZX) have the same management/advisory fee of 0.45% and total expense ratio of 0.55%. The Alger Concentrated Equity ETF (CNEQ) and mutual fund (Class Z: CNEZX) also have the same management/advisory fee of 0.45% and total expense ratio of 0.55%.
"Many of our financial advisor clients are increasingly looking at investment strategies first and then deciding on the vehicle. By aligning the fees for both vehicles, financial professionals can choose the vehicle based on their clients' preferences and long-term investing goals, independent of fee or expense considerations," added Christoph.
Unlock Your Growth Potential with Alger
Founded in 1964, Alger is recognized as a pioneer of growth-style investment management. Privately-owned and headquartered in New York City, Alger can help "Unlock Your Growth Potential" through a suite of growth equity separate accounts, mutual funds, ETFs, and privately offered investment vehicles. Alger's investment philosophy, discovering companies undergoing Positive Dynamic Change, has been in place for 60 years. For more information, please visit http://www.alger.com
Before investing, carefully consider a 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 http://www.alger.com, call (800) 992-3863 (for mutual fund) or (800) 223-3810 (for an ETF), or consult your financial advisor. Read the prospectus and summary prospectus carefully before investing. Distributor: Fred Alger & Company, LLC. NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE.
Risk Disclosures: Investing in the stock market involves 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. Local, regional or global events such as environmental or natural disasters, war, terrorism, pandemics, outbreaks of infectious diseases and similar public health threats, recessions, or other events could have a significant impact on investments. Companies involved in, or exposed to, AI-related businesses may have limited product lines, markets, financial resources or personnel as they face intense competition and potentially rapid product obsolescence, and many depend significantly on retaining and growing their consumer base. These companies may be substantially exposed to the market and business risks of other industries or sectors, and may be adversely affected by negative developments impacting those companies, industries or sectors, as well as by loss or impairment of intellectual property rights or misappropriation of their technology. Companies that utilize AI could face reputational harm, competitive harm, and legal liability, and/or an adverse effects on business operations as content, analyses, or recommendations that AI applications produce may be deficient, inaccurate, biased, misleading or incomplete, may lead to errors, and may be used in negligent or criminal ways. AI technology could face increasing regulatory scrutiny in the future, which may limit the development of this technology and impede the future growth. AI companies, especially smaller companies, tend to be more volatile than companies that do not rely heavily on technology. A significant portion of assets will be concentrated in securities in related industries, and may be similarly affected by adverse developments and price movements in such industries. A significant portion of assets may be invested in securities of companies in related sectors, and may be similarly affected by economic, political, or market events and conditions and may be more vulnerable to unfavorable sector developments. Investing in companies of small and medium capitalizations involves the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. The Fund is classified as a "non-diversified fund" under federal securities laws because it can invest in fewer individual companies than a diversified fund. Foreign securities involve special risks including currency fluctuations, inefficient trading, political and economic instability, and increased volatility. ADRs and GDRs may be subject to international trade, currency, political, regulatory and diplomatic risks. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment. At times, cash may be a larger position in the portfolio and may underperform relative to equity securities.
ETF shares are based on market price rather than net asset value ("NAV"), as a result, shares may trade at a price greater than NAV (a premium) or less than NAV (a discount). The Fund may also incur brokerage commissions, as well as the cost of the bid/ask spread, when purchase or selling ETF shares. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility and disruption in the creation and/or redemption process of the Fund. Any of these factors, among others, may lead to the Fund's shares trading at a premium or discount to NAV. Thus, you may pay more (or less) than NAV when you buy shares of the Fund in the secondary market, and you may receive less (or more) than NAV when you sell those shares in the secondary market. The Manager cannot predict whether shares will trade above (premium), below (discount) or at NAV. Only an authorized participants ("APs") who have entered into agreements with the Fund's distributor may engage in creation or redemption transactions directly with the Fund. The Fund may have a limited number of institutions that act as AP, none of which are obligated to engage in creation or redemption transactions. To the extent that these institutions exit the business or are unable to proceed with creation and/or redemption orders with respect to the Fund and no other AP is able to step forward to process creation and/or redemption orders, Fund shares may trade at a discount to NAV and possibly face trading halts and/or delisting. This risk may be more pronounced in volatile markets, potentially where there are significant redemptions in ETFs generally. AP concentration risks may be heightened in scenarios where APs have limited or diminished access to the capital required to post collateral. The Fund may effect its creations and redemptions for cash, rather than for in-kind securities. Therefore, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Fund shares may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely in-kind. Cash transactions may have to be carried out over several days if the securities market is relatively illiquid and may involve considerable brokerage fees and taxes. Brokerage fees and taxes will be higher than if the Fund sold and redeemed shares in-kind. Certain shareholders, including other funds advised by the Manager, may from time to time own a substantial amount of the shares of the Fund. In addition, a third party investor, the Manager or an affiliate of the Manager, an AP, a market maker, or another entity may invest in the Fund and hold its investment for a limited period of time solely to facilitate commencement of the Fund or to facilitate the Fund's achieving a specified size or scale. There can be no assurance that any large shareholder would not redeem its investment, that the size of the Fund would be maintained at such levels or that the Fund would continue to meet applicable listing requirements. Redemptions by large shareholders could have a significant negative impact on the Fund. In addition, transactions by large shareholders may account for a large percentage of the trading volume.
This material is not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities. Alger pays compensation to third party marketers to sell various strategies to prospective investors.
Media Contact
Scott Anderson, Alger, 212-806-2972, [email protected], www.alger.com
Sheila Cooney, Prosek, 203-745-2523, [email protected], www.prosek.com
SOURCE Alger
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