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Alger

Alger Parent Rating

Average

Alger's unwavering focus on growth investing and the enhancement of its product lineup help mitigate challenges posed by recent outflows and middling performance to maintain its Average Parent rating.

Since its inception in 1964, Alger has remained committed to its growth-oriented philosophy. However, following the post-covid stock rally, Alger, like many growth-centric active managers, experienced disappointing results and notable outflows, leading its assets under management to decline from $46 billion in mid-2021 to $21 billion by late 2023. This downturn forced the firm to lay off nine noninvestment staff members. Despite these setbacks, Alger boasts a robust team of growth managers and a handful of compelling strategies. It has retained high-conviction managers such as Amy Zhang, who has managed Alger Small Cap Focus since joining the firm more than nine years ago, and firm veterans such as Patrick Kelly, who joined Alger in 1999 and runs Alger Capital Appreciation and Alger Spectra.

Alger has stuck with its growth-oriented philosophy and has taken steps to strengthen its product lineup. In early 2024, Alger announced its acquisition of Redwood Investments, a specialized global growth equity manager with approximately $1.5 billion in assets (as of late 2023). This acquisition expands Alger's reach in international and global markets, a segment where it previously struggled to establish a strong foothold. Redwood will continue to operate independently in terms of its investment process and team but will benefit from Alger's operational and distribution resources.

Alger Investments

Market

US Open-end ex MM ex FoF ex Feeder

Total Net Assets

14.55 Bil

Investment Flows (TTM)

−3.51 Bil

Asset Growth Rate (TTM)

−24.22%

# of Share Classes

90
Morningstar Rating # of Share Classes
4
8
31
31
6
Not Rated 10

Exchange-Traded Funds

See All Alger ETFs

Market

US ETFs

Total Net Assets

73.62 Mil

Investment Flows (TTM)

13.70 Mil

Asset Growth Rate (TTM)

30.50%

# of Share Classes

5
Morningstar Rating # of Share Classes
0
0
0
1
1
Not Rated 3

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