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We're looking for exceptional small companies that, we believe, have the potential to come exceptional large companies over time.

In this replay of the conference call held on on Tuesday, June 8, 2016, Alger Small Cap Strategy Focus Portfolio Manager Amy Zhang shares her views on current trends and themes in emerging markets, and provides a portfolio update.

Click here for Amy Zhang's Bio.
For more information on the Alger Small Cap Focus strategy, please click here.

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 price of growth stocks tends to be higher in relation to their companies´ earnings and may be more sensitive to market, political and economic developments. 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. The Fund may have a more concentrated portfolio than other funds, so it may be more vulnerable to changes in the market value of a single issuer and may be more susceptible to risks associated with a single economic, political or regulatory occurrence than a fund that has a more diversified portfolio. The Fund may have substantial holdings within a particular sector, and companies in similar industries may be similarly affected by particular economic or market events. Since the Fund concentrates its investments in technology companies, the value of the Fund’s shares may be more volatile than mutual funds that do not similarly concentrate their investments. Furthermore, because the field of medical technology is subject to substantial government regulation, changes in applicable regulations could adversely affect companies in those industries. In addition, the comparative rapidity of product development and technological advancement in those industries may be reflected in greater volatility of the stocks of companies operating in those areas. In addition, companies focused in the field of information technology can be significantly affected by intense competition, aggressive pricing, technological innovations, product obsolescence, patent considerations, product compatibility and consumer preferences. The cost of borrowing money to leverage may exceed the returns for the securities purchased or the securities purchased may actually go down in value; thus, the Fund’s net asset value could decrease more quickly than if it had not borrowed.

Russell 2000 Growth Index is an index of common stocks designed to track performance of small-capitalization companies with greater than average growth orientation.  Index performance does not reflect deductions for fees, expenses or taxes. Investors cannot invest directly in any index.  Note that comparison to a different index might have materially different results than those shown.

Morningstar percentile rankings are based on the total return percentile rank that includes reinvested dividends and capital gains within each Morningstar Category (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. ©2016 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not war ranted 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.  Morningstar rankings 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 Alger. 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 ranking of the Alger Fund(s). The rankings are displayed for informational purposes only and should not be relied upon when making investment decisions.  When an expense waiver is in effect, it may have a material effect on the total return or yield, and therefore the ranking for the period. Note that past performance is no guarantee of future results.

The Morningstar Analyst Rating is not a credit or risk rating. It is a subjective evaluation performed by the mutual fund analysts of Morningstar, Inc. Morningstar evaluates funds based on five key pillars, which are process, performance, people, parent, and price. Morningstar's analysts use this five pillar evaluation to identify funds they believe are more likely to outperform over the long term on a risk-adjusted basis. Analysts consider quantitative and qualitative factors in their research, and the weighting of each pillar may vary. The Analyst Rating ultimately reflects the analyst's overall assessment and is overseen by Morningstar's Analyst Rating Committee. The approach serves not as a formula but as a framework to ensure consistency across Morningstar's global coverage universe. The Analyst Rating scale ranges from Gold to Negative, with Gold being the highest rating and Negative being the lowest rating. A fund with a "Gold" rating distinguishes itself across the five pillars and has garnered the analysts' highest level of conviction. Analyst Ratings are reevaluated at least every 14 months.

The Small Cap Focus A Shares referenced ranked in the 14th percentile out of 714 funds of the Morningstar U.S. open-end Small Growth Category for calendar year 2015, and the Fund ranked in the top third out of 721 funds in this Morningstar category for the one year period as of June 6, 2016, and the Fund ranked in the 69th percentile out of 592 funds for the five year period as of June 6. 

As of 3/31/2016, the following represents the Alger Small Cap Focus Fund's assets under management: Cantel Medical Corp. 4.02%; Cvent, Inc. 2.713%. At 3/31/16, the Fund held no assets in General Motors Company, or Citigroup, Inc.

Founded in 1964, Fred Alger Management Inc. 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.

Before investing, carefully consider the Fund’s investment objective, risks, charges, and expenses. For a prospectus and a summary prospectus containing this and other information about the Fund, call (800) 992-3863, visit www.alger.com, or consult your financial advisor. Read it carefully before investing.  Distributor: Fred Alger & Company, Incorporated.