...


Many companies are being valued as if they will never grow again. However, we continue to see a tremendous amount of change in the markets and a significant amount of innovation and disruption.

Portfolio Manager and Head of Alger Capital Appreciation and Spectra Strategies Patrick Kelly gives his quarterly update and broader outlook for the markets.

 


Click here for more information on Alger Capital Appreciation Strategy.
Click here for more information on Alger Spectra Strategy.
Click here for more information on The Alger American Asset Growth Fund.

Click here for Patrick Kelly's Bio.

Please note that information provided on specific companies is for informational purposes only to illustrate certain themes in various Capital Appreciation portfolios advised by Fred Alger Management, Inc. (“Alger”).  It should not be interpreted as indicative of the past performance or a recommendation to purchase such holdings.  It should also be noted that although the various Capital Appreciation portfolios invest in similar strategies, portfolio level differences exist, and therefore any individual holding referenced might not be held within a particular Capital Appreciation portfolio.

The views expressed are the views of Fred Alger Management, Inc. 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. 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 of management depth.

As of 12/31/2015, the following represents the Alger Spectra Fund's assets under management: Alphabet, Inc. (formerly Google, Inc.) 7.09%; Amazon.com, Inc. 4.72%; Blackstone Group 0.99%; Bristol Myers Squibb Co. 1.87%; Crown Castle International Corp. 1.13%; Dexcom, Inc. 0.58%; Facebook, Inc. 4.53%; General Electric Company 0.20%; Honeywell International, Inc. 1.95%; J.P. Morgan Chase & Co. 0.10%; Linkedin Corp. 0.88%; Microsoft Corp. 4.04%; Molson Coors Brewing 1.54%; Netflix Com, Inc. 0.61%; Pepsico, Inc. 1.06%; Servicemaster Global Holdings 0.58%; Thermo Fisher Scientific, Inc. 1.79%. 

As of 12/31/2015, the following represents the Alger Capital Appreciation Fund's assets under management: Alphabet, Inc. 6.96%; Amazon.com, Inc. 4.71%; Blackstone Group 0.97%; Bristol Myers Squibb Co. 1.87%; Crown Castle International Corp. 0.20%; Dexcom, Inc. 0.53%; Facebook, Inc. 4.52%; General Electric Company 0.20%; Honeywell International, Inc. 1.86%; Linkedin Corp. 0.90%; Microsoft Corp. 4.00%; Molson Coors Brewing 1.38%; Netflix Com, Inc. 0.61%; Pepsico, Inc. 1.02%; Servicemaster Global Holdings 0.58%; Thermo Fisher Scientific, Inc. 1.79%. As of 12/31/2015, this portfolio held no assets under management for J.P. Morgan Chase & Co.

As of 12/31/2015, the following represents the Alger Capital Appreciation Portfolio’s assets under management: Alphabet, Inc. 7.10%; Amazon.com, Inc. 4.74%; Blackstone Group 0.97%; Bristol Myers Squibb Co. 1.91%; Crown Castle International Corp. 0.16%; Dexcom, Inc. 0.04%; Facebook, Inc. 4.50%; General Electric Company 0.20%; Honeywell International, Inc. 1.91%; Linkedin Corp. 0.89%; Microsoft Corp. 4.01%; Molson Coors Brewing 1.26%; Netflix Com, Inc. 0.62%; Pepsico, Inc. 1.14%; Servicemaster Global Holdings 0.57%; Thermo Fisher Scientific, Inc. 1.99%.  As of 12/31/2015, this portfolio held no assets under management for J.P. Morgan Chase & Co. 

As of 12/31/2015, the following represents the Alger SICAV American Asset Growth Fund’s assets under management: Alphabet, Inc. 7.11%; Amazon.com, Inc. 4.83%; Blackstone Group 1.07%; Bristol Myers Squibb Co. 1.87%; Crown Castle International Corp. 0.20%; Dexcom, Inc. 0.04%; Facebook, Inc. 4.53%; General Electric Company 0.20%; Honeywell International, Inc. 2.06%; Linkedin Corp. 0.90%; Microsoft Corp. 4.01%; Molson Coors Brewing 1.27%; Netflix Com, Inc. 0.62%; Pepsico, Inc. 1.15%; Servicemaster Global Holdings 0.58%; Thermo Fisher Scientific, Inc. 2.07%.  As of 12/31/2015, this portfolio held no assets under management for J.P. Morgan Chase & Co.

As of 12/31/2015, the portfolios held no assets under management for the following companies: Citigroup, Inc.; Tesla, Inc. 

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. Investing in companies of all capitalizations involves the risk that smaller, newer issuers in which the Fund invests may have limited product lines or financial resources or lack of management depth. The use of derivatives involves risks different from, and possibly greater than, the risks of investing directly in the underlying assets. A small investment in derivatives could have a large impact on the performance of the Fund. Derivative instruments involve counterparty risks, liquidity risks, and risks that the derivative does not correlate with the underlying instruments. The cost of borrowing money to leverage could exceed the returns for 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. Strategic Insight includes mutual funds and ETFs but excludes exchange traded products, closed-end funds, VA funds and fund-of-funds.

The Alger Spectra Fund may engage in selling stocks short. In order to engage in a short sale, Spectra arranges with a broker to borrow the security being sold short. In order to close out its short position, Spectra will replace the security by purchasing the security at the price prevailing at the time of replacement. Spectra will incur a loss if the price of the security sold short has increased since the time of the short sale and may experience a gain if the price has decreased since the short sale. The use of short sales could increase the Fund’s exposure to the market, magnifying losses and increasing volatility.

For Non-U.S. Investors:
This information is furnished to you by Fred Alger & Company, Incorporated which is the distributor of Alger SICAV. 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).

Rankings:
Morningstar percentile rankings are based on the total return percentile rank (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.  The Alger Spectra Fund Class A ranking for the 1-year period ended 12/31/15 is 355 out of 1,681 funds; for the 5-year period ended 12/31/15 is 177 out of 1,326 funds; and for the 10-year period ended 12/31/15 is 1 out of 933 funds; The Alger Capital Appreciation Fund Class A ranking for the 1-year period ended 12/31/15 is 483 out of 1,681 funds; for the 5-year period ended 12/31/15 is 211 out of 1,326 funds; and for the 10-year period ended 12/31/15 is 14 out 933 funds.  If sales charges were included, performance would be lower and the rank may be lower.  Morningstar Rating is not to be confused with Morningstar Ranking, which is a numeric ranking of the fund, and is a distinct designation. Source: Morningstar.   For funds with at least a 3-year history, a Morningstar Rating™ is based on a risk-adjusted return measure (including the effects of sales charges, loads, and redemption fees) with emphasis on downward variations and rewarding consistent performance. Within each asset class, the top 10%, the next 22.5%, 35%, 22.5%, and the bottom 10% receive 5, 4, 3, 2, or 1 star, respectively.  During certain of the referenced time periods, the Fund experienced periods of negative performance results. ©2015 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 war­ranted 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.

Lipper rankings are based on Class A shares as other share classes were not established or did not exist during relevant assessment period. Classification averages are calculated with all eligible share classes for each eligible classification, the calculation periods extend over 36, 60, and 120 months. The highest Lipper Leader for Consistent Return (effective Return) value within each eligible classification determines the fund classification winner over three, five, or ten years. If sales charges were included, performance would be lower and the rank may be lower. Note that Lipper’s rankings may use a performance calculation methodology that differs from Fred Alger Management, Inc.’s. (”Alger”) Differences in the methodologies may lead to variances in calculating total performance returns, which might affect the ranking of Alger’s 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. Lipper is a Thomas Reuters company that provides mutual fund information, analytical tools and commentary. Please see www.lipperweb.com for details on ranking awards and ranking awards methodology.

Investors should consider a Fund's investment objectives, risks, and charges and expenses carefully before investing. For a prospectus containing this and other information about an Alger fund, click on www.alger.com. Read the prospectus carefully before investing.
Distributor: Fred Alger & Company, Incorporated.
Member: NYSE Euronext/SIPC.