Investing in Growth & Change

"AI represents a massive TAM. If you can replace or significantly enhance the productivity of labor, a $30-40 trillion market, that is a massive TAM. And even a fraction of that market is still a significant TAM." Portfolio Manager Patrick Kelly discusses the recent launch of the Alger AI Enablers and Adopters strategy and why he thinks artificial intelligence is the most generationally transformative investment theme of this era.

"We think Wingstop is a category leader with a strong moat. That combination of strong same-store growth, durable unit growth and asset-light franchise model really exemplifies what we look for in Small Cap Focus." Alger Small Cap Focus Portfolio Manager Amy Zhang discusses why she thinks Wingstop is really a technology company that happens to serve chicken.

"Forty percent of the U.S. population are technically obese and over ten percent are severely obese. So, we think a lot of the excitement is that, wow, we could apply these therapies to tens of millions of people." Alger Senior Healthcare Analyst, Keye Chow and Associate Analyst Yinglu Zhang, Ph.D., discuss GLP-1's origins as a diabetes drug and some barriers it may face in its attempt to revolutionize the weight loss market.

"Within the mid cap space, some pretty significant macro headwinds are becoming tailwinds. We believe that this has created significant opportunity in the mid cap space, and possibly the biggest mid cap growth discounts that we've seen in decades." Alger Mid Cap 40 ETF Portfolio Manager Amy Zhang, CFA, and Product Specialist Art Nowak, CFA, weigh in on why investors may want to stop underestimating mid caps.

"People forget about the compounding aspect of dividends. But over the past fifty years, approaching 75% of the S&P 500 return is from reinvesting those dividends back into the index and getting that compounding element." Alger Growth & Income Portfolio Manager Greg Adams, CFA, takes a look at one of the most underappreciated areas of growth investing: innovative companies that also generate dividends and maintain high free cashflow.

"I remain skeptical because I talk to a lot of companies in the real world, and I think if it’s a normal public company, they don’t really know what to do with generative AI. I think this will come over time, but I think of it as more like three to five years out." Alger Weatherbie Select 15 Portfolio Manager Ed Minn, CFA, takes a hard look at what companies are doing to leverage the potentially transformative opportunities afforded by generative AI.

"We’re now finding innovation in many other sectors outside of technology, and we're seeing the distribution of innovation extend well beyond the U.S." Alger International Focus Strategy Portfolio Manager Pragna Shere discusses the factors driving Europe's resilience, specific investment opportunities, and reasons for considering non-U.S. equities.

"Profitability and consistency of revenue has been very important to us. We like to play with a top three player. We don’t want to necessarily participate in a languishing asset." Alger Mid Cap Growth Portfolio Manager Brandon Geisler discusses portfolio construction and why mid caps may be the most underappreciated asset class.

"There are a lot of non-U.S. companies that are just not as savvy as U.S. companies at telling their story. And that can cause a real gap between what a company is worth and what it's currently valued at." Alger international and emerging markets Portfolio Manager Greg Jones, CFA, discusses finding deep pockets of growth in corners of the world that investors may be overlooking.

"Post-Covid, the digitization of cash and contactless interactions has accelerated. Today's POS systems can collect and track data that helps a clothing store operate their loyalty program, a restaurant track reservations, or a bike shop manage its inventory." Alger Senior Analyst Darryl Ah Now takes a comprehensive look at the rapidly changing world of Point-of-Sale Systems.