Despite external pressures and the impact of several geopolitical events, the U.S. consumer and economy remain healthy and well positioned.
Portfolio Manager and Head of Alger Capital Appreciation Strategies Patrick Kelly gives his strategy update and broader outlook for the markets.
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Fred Alger & Company, Incorporated is the parent company of Fred Alger Management, Inc. The views expressed are the views of Fred Alger Management, Inc. as of August 2016. Fred Alger Management, Inc. is widely recognized as a pioneer of growth style investment management. Alger has used sources of information which it believes to be reliable; however, this publication is not intended to be and does not constitute investment advice. These views are subject to change at any time and they do not guarantee 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. References to or implications regarding the performance of an individual security or group of securities are not intended as an indication of the characteristics or performance of any specific sector, industry, security, group of securities or a portfolio and are for illustrative purposes only.
Stocks of the companies mentioned may or may not currently be held due to liquidity, inclusion in a benchmark, or in response to cash flows.
For Non-U.S. Investors: This information is furnished to you by Fred Alger Management, Inc. (“Fred Alger Management”). Alger Management, Ltd. serves as investment manager to the Alger SICAV - The Alger American Asset Growth Fund and Fred Alger Management serves as sub manager. Information related to the Alger SICAV is authorized for distribution only when accompanied or preceded by a current prospectus of the Alger SICAV, which contains more information about risks, charges and expenses. Please read the prospectus carefully before investing or sending money. Sales of shares in the Alger SICAV, the subject of this information, are made on the basis of the prospectus only and this information does not constitute an offer of shares in the Alger SICAV. An investment in the Alger SICAV entails risk, which are described in the prospectus. Investors may not get back the full amount invested and the net asset value of the Alger SICAV Fund will fluctuate with market conditions. Exchange rate fluctuations and Alger SICAV charges also affect the return to the investor. The holdings are subject to change. There is no assurance that the Alger SICAV objectives will be attained.
No shares in this Alger SICAV may be offered or sold to U.S. persons or in jurisdictions where such offering or sale is prohibited. U.S. persons include citizens or residents of the United States of America. For a proper definition of U.S. Person see the Alger SICAV prospectus. Investment in the Alger SICAV may not be suitable for all investors. Investors with any doubts with regard to suitability should contact their independent investment advisers. Nothing in this information should be construed as advice. Shares of the Alger SICAV are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including possible loss of the principal amount invested.
Important information for UK investors: The Alger SICAV does not have a place of business in the United Kingdom and is not authorized under the Financial Services Act 1986 (the “Act”). As a consequence, the regulatory regime governing an investor’s rights with respect to the Alger SICAV (and its similarly unauthorized overseas agents) will be different than that of the United Kingdom. Investors will not, for example, be entitled to compensation under the United Kingdom’s Investors Compensation Scheme. The Alger SICAV is an unregulated collective investment scheme under the laws of the United Kingdom and, therefore, can be promoted in the United Kingdom only to persons in accordance with the Act and the Financial Services (promotion of Unregulated Schemes) Regulations 1991 (the “Regulations”). Accordingly, this information may not be distributed in the United Kingdom other than to persons authorized to carry on investment business under the Act, persons whose ordinary business involves the acquisition and disposal of property of the same kind as the property or a substantial part of the property in which the Alger SICAV invests and persons permitted to receive this information under the Regulations. In addition, this information may not be issued or passed on in the United Kingdom to any person, other than to persons to whom the information may otherwise lawfully be issued, unless that person is of a kind described in Article 11(3) of the Financial Services Act of 1986 (Investment Advertisements) (Exemptions) Order 1996 (as amended).
Risk Disclosure: 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 development. Investing in companies of all capitalizations involves the risk that smaller, newer issuers in which Alger invests may have limited product lines or financial resources or lack management depth.
Past performance is no guarantee of future results.
Certain Alger strategies may invest in stock issued by companies in foreign countries, including emerging markets. Special risks associated with investments in foreign country issuers, including issuers in emerging markets, include exposure to currency fluctuations, less liquidity, less developed or less efficient trading markets, lack of comprehensive company information, political instability and different auditing and legal standards. Foreign currencies are subject to risks caused by inflation, interest rates, budget deficits and low savings rates, political factors and government controls.
Companies discussed reflect the top holdings for various accounts in the strategy and is subject to change. Actual client holdings may vary. Portfolio holdings may change and stocks of companies noted may or may not be held by one or more Alger portfolios from time to time. Investors should not consider references to individual securities as an endorsement or recommendation to purchase or sell such securities. Transactions in such securities may be made which seemingly contradict the references to them for a variety of reasons, including but not limited to, liquidity to meet redemptions or overall portfolio rebalancing.
The S&P 500 index is an unmanaged index generally representative of the U.S. stock market without regard to company size. Index performance does not reflect deductions for fees, expenses, or taxes. Investors cannot invest directly in any index.
As of 6/30/2016, the following companies represented the noted percentage of Capital Appreciation Strategy assets: Amazon.com, Inc., 4.97%; Apple, Inc., 4.05%; Comcast Corp., 2.02%; Facebook, Inc., 4.38%; Alphabet, 5.99%; Microsoft, 4.06%; Netflix, Inc., 0.17%, Honeywell International, Inc., 3.74%, Unitedhealth Group, Inc., 2.23%, Pfizer, Inc., 0.0%, and Allergan PLC, 2.67%.
Alger Management, Ltd. (company house number 8634056, domiciled 78 Brook Street, London W1K 5EF, UK) is authorised and regulated by the Financial Conduct Authority for the distribution of regulated financial products and services. La Française AM International has a signed agreement with Alger Management Ltd, whereby La Française AM International is authorized to distribute Fred Alger Management Inc. products in Europe.