1. Firm Overview
Founding Year & Story: Fred M. Alger Jr. founded Fred Alger Management in 1964 in New York City with just $3,000 and one employee. Alger is widely credited as a pioneer of growth-style investing, launching the firm with a research-intensive, bottom-up stock-picking approach that focused on companies. Over time, this philosophy became known for identifying “Positive Dynamic Change” – companies undergoing transformative growth or life-cycle changes (e.g. new products, new management) that drive long-term earnings increases. The firm’s early years were boutique in scale, but Fred Alger’s reputation grew as he delivered strong results and helped define growth equity investing in the 1960s and beyond.
Office Locations: Headquartered in New York City, Alger today also maintains affiliate offices in Boston, Denver, and London. The Boston office stems from Alger’s acquisition of Weatherbie Capital (a small-cap growth specialist) in 2017, and London supports international clients (Alger opened a London office in 2014 to distribute its strategies in Europe). Denver is a smaller presence mentioned in recent press as part of the firm’s footprint. These locations enable Alger to serve U.S. investors as well as non-U.S. institutional clients via local sales teams and a Luxembourg SICAV for overseas investors.
Type of Firm: Fred Alger Management is a privately held asset management firm focused exclusively on active investment management (specifically, growth equity portfolios). It operates as an independent investment adviser registered with the SEC. The firm offers an array of equity-focused investment products including separately managed accounts, mutual funds, ETFs, and private funds, all adhering to its growth equity mandate. Alger is not part of a larger bank or conglomerate – it is a boutique investment firm with a singular focus on growth equities and fundamental research.
Current Assets Under Management (AUM): As of early 2024, Alger’s total AUM is approximately $17–18 billion (regulatory AUM reported was $17.6 billion on March 28, 2024). This AUM reflects a decline from a peak of around $35–40 billion in 2021, when growth stocks had surged. The firm’s assets are predominantly in public equity strategies (with only minor exposure to bonds or other assets). Notably, Alger’s AUM dropped to about $5 billion in the aftermath of 9/11 (2001) but has since rebounded many-fold. (See “Notable History” below for context.) A large portion of the assets are in Alger’s proprietary mutual funds and institutional accounts.
Ownership Structure: Alger remains family-owned and employee-owned. Fred Alger’s family retains control through Alger Associates, Inc. – the parent holding company. In fact, over 99% of Alger Associates’ common stock is collectively owned by members of the Alger family (notably Fred Alger’s daughters: Alexandra D. Alger, Hilary M. Alger, and Nicole D. Alger). This makes Alger a private, independent firm with no outside public shareholders. Key employees also participate in ownership economics via an internal partnership plan (providing equity-like incentives). Alger is led by the second and third generation of the Alger family (see Leadership section), ensuring continuity with the founder’s vision.
Notable Historical Events: Alger has a rich and sometimes poignant history:
· 1974: Alger launched its flagship Alger Spectra Fund, one of the first growth mutual funds, which Fred Alger managed and which still exists today.
· 1990s: Under Fred’s younger brother David D. Alger (who became President/CIO in 1995), Alger achieved top-tier performance. David was recognized as a “Fund Manager of the Decade” in the 1990s. The firm’s rapid growth led to a move to the World Trade Center in 1998 as AUM exceeded $10 billion.
· Sept 11, 2001: Alger tragically lost 35 employees, including David Alger, in the 9/11 attacks (the firm’s offices were on the 93rd floor of the North Tower). Despite this devastating blow, the Alger family and remaining team rebuilt the firm. Within a year, Dan Chung (David’s nephew and Fred’s son-in-law) took over as CIO, and the firm relocated within Manhattan. By the mid-2000s, Alger had rebounded both operationally and in assets.
· 2006: Leadership transitioned to Fred Alger’s son-in-law, Dan Chung (who had guided the firm after 9/11), as CEO (see Leadership section).
· 2017: Alger made its first acquisition since 1974 by acquiring Weatherbie Capital, a Boston-based growth equity boutique with ~$800M AUM. Weatherbie’s team became a wholly-owned subsidiary, expanding Alger’s expertise in small- and mid-cap growth stocks.
· 2021: Alger launched its first active ETF, the Alger 35 ETF, a high-conviction portfolio of 35 growth stocks created as a tribute to the 35 colleagues lost on 9/11 (a portion of the ETF’s fees is donated to 9/11-related charities).
· 2023: Alger announced the acquisition of Redwood Investments, a women-founded global growth equity manager with ~$1.6B AUM, to broaden Alger’s international and emerging markets capabilities. (This deal closed in early 2024.)
Throughout its history, Alger has maintained its growth-investing DNA. The firm’s legacy includes overcoming adversity (most notably the 9/11 rebuilding) and evolving its product lineup (e.g., adding international strategies and new vehicles) while staying true to the bottom-up growth stock philosophy pioneered by Fred Alger.
2. Leadership & Key Personnel
Founder – Frederick M. Alger Jr.: Fred Alger is the visionary who launched the firm in 1964. A Harvard-educated finance professional (and a U.S. Marine Corps veteran), he championed the idea that intensive fundamental research could identify dynamic growth companies before the broader market. Fred Alger’s philosophy of investing in companies undergoing “Positive Dynamic Change” has guided the firm for six decades. He led Alger Management for over 30 years, gaining renown as one of the “go-go” growth investors of the 1960s. In 2000, Barron’s named him to its “All-Century” team of investment all-stars. Fred retired in 1995, handing off day-to-day control to his brother David, but remained Chairman. Notably, after 9/11 Fred returned to actively steer the firm’s rebuilding. Now in his 80s, Fred Alger holds the title of Chairman Emeritus. His influence endures in Alger’s culture and strategy – he is often credited as “a pioneer of the growth style of investing.”
David D. Alger (President & CIO, 1995–2001): The younger brother of Fred, David Alger was a driving force in the firm’s success during the 1980s and 1990s. He joined Alger in 1971 and learned the craft from Fred, eventually putting his own stamp on the firm. David had a hands-on management style and a keen eye for technology stocks. Under his leadership, Alger’s funds (like the Alger Capital Appreciation and Spectra Fund) achieved “absurd returns vs benchmarks over [the] last decade and a half,” as one industry observer noted. He was recognized among the top fund managers of the 1990s. Tragically, David Alger perished in the World Trade Center on September 11, 2001 while serving as the firm’s CEO/CIO. His loss was a pivotal moment for Alger. The Alger 35 ETF launched in 2021 is named in memory of David and the team lost on 9/11, ensuring their legacy lives on in the firm’s future.
Daniel C. Chung, CFA – Chief Executive Officer & Chief Investment Officer: Dan Chung is the current leader of Alger and the architect of its modern era. The son-in-law of Fred Alger, Dan joined the firm in 1994 (initially recruited by David). He holds a Harvard Law degree and even served as a clerk for a U.S. Supreme Court Justice before shifting to investing. Dan became an analyst at Alger, then rose to Director of Research and was named CIO in 2001 (immediately after 9/11). He took on the CEO title in 2006. Under his leadership Alger has rebuilt its AUM and expanded globally while staying true to growth investing. Dan personally manages several strategies (including the Alger Spectra Fund, ~$4.5B). He is known for an unusual background (he clerked for a U.S. Supreme Court Justice before becoming an investor) but has been with Alger since 1994. He became CIO in 2001 and has since been guiding Alger’s research philosophy. Dan still manages portfolios directly, which keeps him actively engaged with research discussions. He is known to be deeply involved in vetting major investment ideas and mentoring analysts. Under Dan, Alger has remained steadfast in sticking to its growth philosophy and its proprietary research process.
James P. Tambone – Vice Chairman & Chief Distribution Officer: Jim Tambone is the firm’s long-time head of distribution (sales and marketing). He has led Alger’s efforts in raising assets and building relationships with clients and intermediaries. Jim originally joined Alger in 1999 and was crucial in expanding Alger’s presence among financial advisors and consultants. He returned to Alger in 2015 (after a stint elsewhere) to spearhead distribution again. As Vice Chairman, he oversees all aspects of sales, marketing, and client relations. He joined Alger in the 2000s and has been instrumental in expanding Alger’s distribution partnerships (for example, Alger’s alliance with La Française in Europe). He was quoted during the Weatherbie acquisition as EVP, highlighting Alger’s strategic goal of affiliating with like-minded growth managers. (As of late 2023, Alger announced Christoph Hofmann, CFA (formerly of Schroders), would succeed Tambone as Global Distribution head and President of Fred Alger & Company, signaling a renewed push in international markets.)
Gregory Adams – SVP & Director of Quantitative Research/Risk Management: Greg Adams leads Alger’s risk management and quantitative analysis team. A veteran with ~38 years experience, he joined Alger in 2006 and brought expertise in quantitative methods. Greg helps integrate risk oversight into the stock-selection process, ensuring portfolios’ exposures remain intentional. He also manages Alger’s Dynamic Opportunities and Growth & Income strategies, which require balancing fundamental picks with quantitative risk controls.
Portfolio Management Leadership: Alger’s investment team is organized by strategies, each led by seasoned portfolio managers:
· Patrick W. Kelly, CFA – Executive Vice President & Portfolio Manager: Head of Alger’s Large Cap Growth team, Patrick manages the Alger Capital Appreciation and Spectra strategies (flagship multi-cap growth portfolios). He started at Alger as a research associate in 1999 and rose through the ranks (PM since 2004). Patrick launched the Alger Focus Equity strategy and, in 2024, introduced an “Alger AI Enablers & Adopters” thematic strategy to capitalize on innovation trends. With 28 years of experience, Patrick is known for his tech sector acumen. He is also a member of the Alger Partners Plan (signifying he has an equity stake in the firm).
· Ankur J. Crawford, Ph.D. – Executive Vice President & Portfolio Manager: Ankur co-leads the Large Cap team alongside Patrick. She has been with Alger since 2004, starting as a semiconductor analyst after earning a Ph.D. in Materials Science. Ankur now manages Alger’s Focused and Concentrated growth strategies (she launched the Alger 15-stock Concentrated Equity fund in 2024). She brings deep scientific and tech knowledge to the investment process and is one of the highest-ranking female PMs in the growth equity space (her industry recognition includes being named among the “Top 20 Female Portfolio Managers” globally). Like Patrick, she is part of the Partners Plan.
· Amy Y. Zhang, CFA – Executive Vice President & Portfolio Manager: Amy Zhang heads Alger’s Small Cap and Mid Cap Growth strategies. She joined in 2015 from Brown Capital Management and has ~30 years experience investing in small companies. Amy manages the Alger Small Cap Focus Fund (which has received industry awards for performance) and related mid-cap portfolios. Renowned for her stock-picking in the small-cap space, she has been honored as a “Women to Watch” by InvestmentNews and appeared on Forbes’ 50 Over 50 – Money list. She, too, is a Partner (owner) in the firm.
· Weatherbie and Redwood Teams: After acquisition, these affiliate teams operate under Alger’s umbrella. Matthew Weatherbie, Weatherbie Capital’s founder, remained CEO and co-CIO of that subsidiary post-2017 (though day-to-day management of Alger Weatherbie strategies is now led by PMs Josh Bennett and George Dai). Jennifer Silver and Michael Mufson, co-founders of Redwood Investments, joined Alger in 2024 as co-CIOs of international strategies, bringing expertise in global/emerging markets. Their integration expands Alger’s bench of key decision-makers in non-U.S. equities.
Overall, Alger’s leadership mix combines long-tenured “home-grown” talent (like Kelly, Crawford, etc., who built careers at Alger) with strategic hires/affiliates (Weatherbie, Redwood) to cover all corners of growth equity. The firm’s culture benefits from this balance of continuity and fresh perspectives.
3. Investment Strategy
Asset Classes & Focus: Alger specializes exclusively in equity investing, particularly growth equities. The firm’s portfolios consist primarily of publicly traded stocks (equities). Alger does not manage traditional fixed-income or multi-asset portfolios; nearly all AUM is in stock-focused strategies. Within equities, Alger covers the spectrum of market capitalizations – from small-cap and mid-cap growth strategies to large-cap and all-cap strategies. All these portfolios share a common philosophy centered on investing in companies experiencing high growth and dynamic change. Alger’s focus is on long-only, active management – it does not engage in passive index tracking or significant short-selling/hedging in its main strategies. The product lineup includes mutual funds, separate accounts, and ETFs that all adhere to this growth equity style. Alger’s “Pure Growth” approach means it generally avoids value stocks or other asset classes; it sticks to what it knows best – growth stocks.
Geographic and Sector Reach: Traditionally, Alger’s strategies concentrated on U.S. equities. However, the firm has broadened its reach to include global and international growth equities. For example, Alger manages an International Growth strategy and Global Growth portfolios, especially after acquiring teams like Weatherbie (for small-cap) and Redwood (for international). Still, even these strategies maintain Alger’s growth focus. Sector-wise, Alger’s portfolios often tilt toward technology, healthcare, and consumer sectors – areas where high-growth companies are common. But Alger is fundamentally bottom-up; it does not set hard sector targets. If anything, the common theme is that Alger tends to invest in sectors undergoing innovation or change (e.g., tech disruption, biotech advances, e-commerce in consumer). Conversely, Alger typically has less exposure to slow-growth sectors like utilities or mature industrials, unless a specific company in those areas is undergoing dynamic growth.
Portfolio Characteristics: Alger’s portfolios are generally high-conviction and relatively concentrated. A typical Alger fund might hold around 50-70 stocks (with some even more concentrated, like the 35-stock or 15-stock strategies). Turnover is moderate – Alger is willing to hold a winner for many years as long as the growth thesis remains intact. Portfolio turnover tends to reflect selling only when a company’s fundamentals deteriorate or if a better idea emerges. Alger’s growth discipline also means portfolios often have higher price-to-earnings or price-to-sales ratios than the broad market (since growth stocks command premiums). The firm is comfortable with this as long as earnings growth is robust. Risk management is applied primarily at the stock level (each pick is scrutinized); Alger does not focus heavily on matching index sector weights or style metrics, which can lead to significant active share (i.e., portfolios that look very different from benchmarks).
Key Differentiators: What sets Alger’s strategy apart is the intense focus on change and innovation. Many growth managers buy high-growth companies; Alger specifically emphasizes those at inflection points – companies undergoing a transformation that many investors might underappreciate. This could be a turnaround, a new product cycle, a management change, or a secular trend boosting demand. Alger often talks about “positive dynamic change” as its North Star. Another differentiator is Alger’s long history – few growth equity boutiques have been around since the 1960s and navigated multiple cycles. This gives Alger a deep perspective on market evolution and the patience to stick with growth stocks even during downturns. The firm’s size (mid-sized, not gigantic) is also a point of differentiation; it’s large enough to have resources but small enough to be nimble and invest meaningfully in smaller-cap names without moving the market too much. Finally, Alger’s culture of research (instilled by the Alger family and continued by Dan Chung) is a strategic asset – analysts are expected to dig deep, often going beyond obvious sources, to find the next great growth story.
4. AUM Details
Total AUM: Fred Alger Management oversees on the order of $18 billion in assets as of early 2024. This is the regulatory discretionary AUM reported to the SEC (approximately $17.6B as of March 2024) plus recent market appreciation. It represents a significant decrease from its peak of ~$40B in 2021, reflecting both market downturns in growth stocks and some client outflows. However, $18B still places Alger among substantial boutique firms.
AUM by Strategy: The majority of Alger’s AUM is in its flagship U.S. large-cap and all-cap growth strategies (e.g., Alger Spectra, Alger Capital Appreciation). These core strategies hold a large portion of the firm’s assets via mutual funds and institutional accounts. Alger also manages a meaningful amount in small/mid-cap growth (including the Weatherbie specialized strategies). Global and international growth strategies make up a smaller but growing slice, especially after adding the Redwood Investments team (bringing in ~$1.6B of non-U.S. AUM). Additionally, Alger’s newer vehicles, like the Alger 35 ETF and other focused funds, contribute a few hundred million. Alger’s separately managed accounts (SMAs) for high-net-worth or institutional clients also form part of the AUM, often running similar strategies to the funds.
Trends: Alger’s AUM has been quite market-sensitive. The run-up in tech and growth stock valuations through 2020–2021 roughly doubled their AUM from the mid-2010s to the peak. Conversely, the growth stock correction of 2022 cut assets sharply (both through market losses and some redemptions). Alger’s long-term client base (e.g., those in Spectra Fund or Capital Appreciation Fund) has stayed relatively steady, but the firm has had to work to attract new flows, especially with competition from passive funds. The 2023 rebound in tech/growth stocks helped stabilize AUM, and the addition of Redwood’s assets provided a boost. Looking ahead, Alger’s asset levels will likely depend on both growth equity market performance and the firm’s ability to distribute products (e.g., gaining institutional mandates or increasing mutual fund sales).
Client Breakdown: Alger’s clients include a mix of retail investors (via mutual funds and ETFs) and institutional investors (via separate accounts and sub-advisory roles). A sizable portion of assets come from Alger’s own family of mutual funds (accessible to individual investors and financial advisors). The firm also manages assets for institutions like pension funds, endowments, and foundations – often through SMAs or commingled vehicles. Additionally, Alger has some international clients investing through its Luxembourg-domiciled funds (SICAV). The client base skews toward those who specifically seek growth equity exposure and are willing to invest with an active manager known for that style.
Notable AUM Milestones: Historical context – Alger first crossed $1B AUM around the early 1980s as its growth funds gained traction. By the late 1990s, Alger was over $10B. The 2000 tech bubble burst and 2001 tragedy saw AUM fall dramatically (to ~$5B), but the recovery in the mid-2000s and new fund launches (like Alger Mid Cap and others) brought it back over $20B by 2007. Another dip occurred in 2008–09 (financial crisis), followed by growth to ~$25B in the 2010s. The extraordinary rally of growth stocks by 2020 pushed Alger to record assets near $40B, but that has since roughly halved with market changes. These swings illustrate Alger’s high-beta exposure to the equity markets it operates in.
5. Investment Team Organization
Team Size and Structure: Alger is a boutique firm with a lean professional staff. The firm has around 100–150 employees in total (118 reported in a recent filing). Of these, roughly 30–40 are investment professionals (portfolio managers, analysts, traders) while the rest are in sales, marketing, client service, operations, and support roles. The investment team is subdivided by strategies and market cap focus (e.g., a team for large-cap growth, one for small/mid-cap which includes Weatherbie, one focusing on global/international with Redwood). Each team has portfolio managers and dedicated analysts, but there is collaboration across teams given the shared philosophy. The analysts often specialize by sector (technology, healthcare, consumer, etc.), and their research can feed multiple strategies.
Leadership and Reporting: Dan Chung as CEO/CIO oversees the entire investment platform. Reporting to him are the head portfolio managers like Patrick Kelly (large cap), Ankur Crawford (large cap co-lead), Amy Zhang (small/mid cap), and the Redwood founders for international. Analysts typically report into their respective PMs or directors of research for a strategy. Alger fosters a flat structure – junior analysts may have direct interaction with Dan and other senior leaders during research meetings. There is also an Investment Committee or similar forum where top PMs and Dan review major decisions and ensure consistency with Alger’s philosophy.
Analyst Development: Many of Alger’s analysts are hired at a junior level (often right out of MBA or with a few years of experience) and then groomed internally. The firm historically liked to “grow its own” analysts, which leads to long tenures (some senior analysts have been with Alger for decades). Alger also augmented its research via acquisitions (Weatherbie’s team came on board, Redwood’s team joined). New analysts are mentored on Alger’s approach of identifying dynamic change and are given a lot of responsibility early. The relatively small size of the team means each analyst’s work is highly visible – a great idea can directly make it into a portfolio.
Collaboration: Despite having distinct product teams, Alger emphasizes cross-team dialogue. They hold regular research meetings where analysts present ideas to the broader group. There are also meetings where macro themes are discussed, which can spark idea sharing across teams. For example, an insight about cloud computing might benefit both a small-cap fund and a large-cap fund. This knowledge transfer is part of the culture (sometimes referred to as “cross-team pollination” internally).
Support Functions: In addition to fundamental analysts, Alger has a few quantitative and risk analysts (under Greg Adams) who work across all teams. They provide tools and analysis to complement the fundamental work. They might screen the universe for companies meeting certain growth criteria or flag risk concentrations in portfolios. They also help with risk modeling (scenario analysis, factor exposures). Additionally, Alger’s team utilizes technology like a proprietary research database and external data (e.g. third-party surveys, expert networks) to enhance coverage. The firm’s modest size means communication is often informal – in the halls or via quick calls rather than bureaucratic memos – which they believe helps them act nimbly on research insights.
In summary, Alger’s investment team is tight-knit and specialized, divided by sector expertise but unified by a common philosophy. The CIO (Dan Chung) and senior PMs provide leadership, but every analyst is empowered to contribute high-conviction ideas. The organization is relatively flat: junior analysts get exposure to senior leadership quickly, and PMs often discuss ideas directly with even the most junior researchers. This organizational style reflects Alger’s boutique nature and its roots as an entrepreneurial firm.
6. Investment Process
Philosophy & Approach: Alger’s investment process is rooted in fundamental, bottom-up research driven by its long-standing philosophy of investing in companies undergoing “Positive Dynamic Change.” This two-pronged definition means Alger looks for either:
· High Unit Volume Growth – products or services seeing rapidly growing demand, indicating the business can scale revenue quickly.
· Positive Life Cycle Change – companies experiencing a major change (new management, restructuring, etc.) that can unlock future growth.
In practical terms, Alger analysts hunt for companies with accelerating revenue/earnings growth, often propelled by innovation or secular trends. The firm explicitly avoids benchmark-driven or index-hugging approaches; instead it builds conviction-weighted portfolios from the bottom up. Since 1964, Alger has been disciplined in sticking to this growth philosophy and its proprietary research process.
The broad investment approach can be summarized as: Find Dynamic Growth Companies → Do Deep Fundamental Research → Build High-Conviction Portfolios. Alger is active-only (no passive strategies) and typically long-term oriented (generally a 3-5 year investment horizon for core holdings, though they will sell sooner if the thesis breaks).
Idea Generation: Alger’s ideas primarily come from its internal research staff. Analysts comb through their sectors for attractive opportunities. Idea sources include:
· Screens: Quantitative screens to identify companies with high growth metrics (e.g. 20%+ revenue growth, expanding margins) or stocks that have pulled back despite strong fundamentals.
· Industry Thematics: Analysts constantly monitor industry trends (e.g. cloud computing, gene therapy, e-commerce adoption) to spot beneficiaries of “dynamic change.”
· Field Research: Alger analysts frequently attend industry conferences, trade shows, and use expert networks. They might discover a new idea by talking to a company’s supplier or a competitor, learning about an upcoming product cycle.
· Management Meetings: Alger meets many management teams a year – a compelling meeting with a CEO or CFO can trigger a new idea for investment (or add confidence to an existing thesis).
· Cross-Team Pollination: Ideas are shared across strategies – for example, a promising small-cap company identified by the Weatherbie team can be discussed with the large-cap team as a “future star.” Likewise, macro or secular themes are discussed in investment meetings, which can spark ideas across sectors.
Analysts maintain a “bench” list of promising companies they don’t own but would like to at the right price. These watchlists feed the funnel when attractive valuations or catalysts emerge. Alger’s relatively small team size ensures every analyst’s idea gets attention. There is no bureaucratic filter – analysts directly pitch PMs on an ongoing basis.
Research & Due Diligence Process: Once an idea is identified, Alger applies intensive due diligence to determine if the company truly fits the dynamic growth criteria and is a worthy investment:
· Analysts will create detailed financial models projecting a company’s earnings 3-5 years out (or more). These models are scenario-based (bull, base, and bear cases) to assess upside vs. downside.
· They conduct a 360° analysis of the company. Alger explicitly mentions gaining a “360° view” by talking to customers, competitors, suppliers, industry experts – not just relying on company-provided data. For example, for a medical device company, an Alger analyst might survey physicians to gauge adoption trends. For a software company, they might interview enterprise IT managers about which software solutions are gaining traction.
· Analysts also utilize third-party data (market research, alternative data) to validate a company’s growth metrics. Proprietary field work is a hallmark – Alger analysts have been known to do things like count retail traffic, test consumer apps, or even use satellite imagery (for certain industries) to verify growth.
· Quality of management is assessed by examining the executives’ background and track record. Alger likes visionary, execution-focused leaders. They often consider whether management has a personal stake (ownership) and if they articulate a clear growth strategy.
· Competitive position is analyzed – even a fast-growing company may not be attractive if it’s in a commoditized business. Alger looks for some edge (technology, brand, patent, network effect) that can sustain growth.
· Valuation & Risk: While Alger invests in high-valuation stocks, it still models out a reasonable valuation range. They consider what growth rate is “priced in” and set price targets based on their scenarios. Risk factors (debt, regulatory, disruption) are listed and monitored.
· Every potential investment is debated in research meetings. A senior PM or Dan Chung will challenge the analyst’s thesis – why is this the best growth opportunity? What could go wrong? This peer review is crucial to avoiding bias.
· If the due diligence checks out and conviction is high, the stock is added to the portfolio (sizing the position according to conviction and liquidity). If not, it remains on the watchlist.
Portfolio Construction: Alger’s portfolio managers construct portfolios by building up from high-conviction ideas. They don’t start with index weights or top-down allocations. Instead, they consider each stock on its own merit, and then also ensure the overall portfolio isn’t accidentally taking on unintended risks.
· Position Sizing: A “full” position in an Alger portfolio can be quite significant (in some funds, the top holding might be 8-10% of assets). Typically, the top ten holdings make up a large portion of the fund. PMs size positions based on their confidence in the stock and its upside potential. Higher conviction = larger position. Conversely, small positions (below 1%) are rare; if it’s not at least 1% weight, they might question why it’s owned at all.
· Sector & Theme Balance: While there’s no hard target, PMs do keep an eye on aggregate exposures. For instance, given many growth companies are tech or healthcare, those sectors might naturally be 40% or more of the portfolio. Alger is okay with that if those sectors are where the opportunities are. But they will consider diversification to avoid, say, all top ten names being in one industry. They also watch for theme concentration (e.g., if a lot of stocks all benefit from the same trend, that’s a risk if that trend falters).
· Cash Level: Alger’s funds usually stay fully invested. Cash is typically below 5%. They’re not timing the market; if they sell something, they aim to reinvest proceeds into other growth ideas fairly quickly.
· Sell Discipline: Alger sells a stock if: (1) fundamentals deteriorate (growth slows, thesis breaks), (2) price exceeds their estimate of value (overvalued relative to growth), or (3) they find a better opportunity and need to reallocate. Sometimes macro factors can trigger trims (e.g., reducing exposure to a frothy segment).
· Risk Monitoring: The risk team provides reports on factor exposures, volatility, etc., but Alger PMs mainly focus on stock-specific risk. They try to ensure no single risk (like all companies being unprofitable startups, or all dependent on low interest rates) is too pervasive. However, being a growth investor means certain risks (like higher volatility) are inherently accepted.
Review & Oversight: The portfolios are reviewed in regular meetings. Dan Chung, as CIO, keeps an eye on performance and holdings. If a fund underperforms, they dissect whether it’s due to style headwinds (market rotated to value, etc.) or stock selection. Alger’s long-term perspective means they don’t panic easily; they understand growth can be out of favor in some cycles. But they hold managers accountable for poor picks and reward good ideas (analysts whose stock ideas work often get bigger roles).
Example – How an Idea Flows Through the Process: Imagine an Alger analyst spots a mid-cap company in the e-commerce software space that’s growing revenue 30% annually. They’ve noticed more mentions of this company in trade journals. The analyst meets the management at a conference, talks to a few customers, and builds a model showing the company could double earnings in three years. They see it as a dynamic change beneficiary (the shift of retail to online). They present it, and the team agrees it’s a great fit (high unit volume growth). They initiate a position at 2% of the portfolio. Over the next year, the stock rises, and as conviction grows, they increase it to a 5% position. Later, a larger tech firm announces a competing product, raising questions. The Alger team revisits the thesis; if they conclude growth might slow, they might trim or exit. This illustrates the ongoing nature of Alger’s process – continuous research, monitoring, and active management of positions.
7. Learn More About the Firm
For those looking to dive deeper into Alger’s insights and history, here are several resources:
· Podcast – Masters in Business with Barry Ritholtz (June 2022): An in-depth audio interview with Dan Chung, CEO/CIO of Alger. In this Bloomberg podcast, Dan discusses Alger’s investing approach, how the firm recovered after 9/11, and views on growth vs. indexing. Notable tidbit: Alger was noted to be running $35–$40 billion in assets at that time, and Dan explains why the team maintains an “obsessive focus” on growth companies. This conversation provides rich context on Alger’s philosophy straight from its leader.
· YouTube – Alger On the Money Series: Alger produces regular short videos and webinars on market outlook and stock ideas. These can be found on Alger’s YouTube channel (search “Alger Investment Insights”). Topics include quarterly market reviews by Dan Chung, thematic discussions (e.g., the impact of AI on growth investing), and interviews with portfolio managers. It’s a good way to see how Alger applies its philosophy to current market conditions.
· Articles & Interviews:
o ThinkAdvisor (Dec 2023) – “Alger Lost Its CEO on 9/11. Dan Chung Stepped Up.” – A feature Q&A with Dan Chung reflecting on how he rebuilt Alger in the 2000s and how the firm is positioned today. The article highlights leadership lessons and Alger’s boutique culture.
o Wall Street Journal (Sept 2011) – “Beyond 9/11: Mutual-Fund Firm Alger Is Thriving, and Remembering.” – A profile marking the 10-year anniversary of 9/11, describing Alger’s journey from tragedy to recovery (noting AUM doubled from $8B post-attack to $17B by 2011).
o Financial Times (2011) – “Fred Alger: Back from the brink at ground zero.” – An FT piece on how the firm resurrected itself after 2001, with insights into the Alger family’s commitment and the firm’s performance in subsequent years.
o Barron’s (Aug 2022) – “The Mistake People Make With Indexing, According to This CEO.” – An interview with Dan Chung in Barron’s, where he argues that slavishly following benchmarks can lead investors astray from opportunities. He reiterates Alger’s case for active growth investing and mentions some of Alger’s favorite themes. (Dan notes that Alger seeks growth beyond the traditional index categories, hence the firm’s high active share).
· Whitepapers & Research: Alger periodically publishes whitepapers or “Insight” pieces on its website. For example, “Navigating Positive Dynamic Change” might be a paper outlining their philosophy with case studies. They also publish a series called Alger On the Record (transcripts of conversations with Alger analysts/PMs about specific trends) and Capital Markets Outlook (the team’s outlook on the economy and markets each quarter). These are available on Alger’s official site under the Insights section.
· Books: For a historical perspective, the book “One Way Up Wall Street: The Fred Alger Story” (published 1999) is essentially a biography of Fred Alger and the firm’s early years. It provides color on how Alger identified winners in the 60s–90s and built the culture. Additionally, David Alger’s 1991 book “Raging Bull: How to Invest in the Growth Stocks of the ’90s” gives a sense of the growth strategies Alger employed during that era (though dated, it’s part of the firm’s heritage).
· WhaleWisdom / 13F filings: If one is interested in Alger’s holdings, websites like WhaleWisdom track Alger’s quarterly 13F filings (for U.S. stock holdings). These show Alger’s top equity positions and changes each quarter. For example, WhaleWisdom data confirms Alger’s top held stocks (like MSFT, NVDA, AMZN) and sector weightings. This can be useful for seeing the outcome of Alger’s process in terms of portfolio composition.
· Conferences & Webinars: Alger’s team often speaks at industry conferences (e.g., Morningstar Investment Conference) or hosts webinars for financial advisors. Check Alger’s site or LinkedIn for announcements of upcoming webinars or podcasts – e.g., they have done webinars on “Positive Dynamic Change: 2025 Outlook” where PMs answer live questions. These events can give further insight into their thinking and are often recorded for replay.
· Media Appearances: Many Alger portfolio managers appear on financial news. For example, Ankur Crawford has been featured discussing tech stocks on CNBC, and Amy Zhang has appeared in Barron’s or Bloomberg articles about small-cap investing (she’s received awards as noted). Tracking these appearances can provide real-world examples of how Alger picks stocks. Dan Chung, in particular, frequently writes op-eds or is quoted – keep an eye out for his commentary in outlets like Forbes, Citywire, and InvestmentNews.
By exploring these resources, one can gain a multi-faceted understanding of Alger – from its storied history and culture to its current investment strategies and market views. The firm’s consistency in philosophy over decades is evident in these materials, as is its adaptability to new market environments (like adopting an ETF vehicle and global expansion). Whether you prefer listening to the CEO on a podcast, reading a profile article, or sifting through portfolio filings, there’s ample material to learn more about what makes Alger unique.
8. Recent Developments
Expansion via Acquisition (2023-2024): In late 2023, Alger announced the acquisition of Redwood Investments, LLC, a Boston-based global growth equity boutique. Redwood (founded in 2004 by Jennifer Silver and Michael Mufson) managed about $1.6 billion in international and U.S. growth equity strategies. This deal (closed in January 2024) is significant for Alger as it expands the firm’s international and emerging markets capabilities. Redwood’s team brings 20 years of experience and a complementary process (blending fundamental and quantitative analysis) to Alger. Post-acquisition, Redwood becomes a wholly-owned subsidiary, but retains its investment autonomy and women-owned status. Alger plans for Redwood’s team to sub-advise Alger’s International Focus, Global Focus, and Emerging Markets funds. Strategically, this move demonstrates Alger’s commitment to broadening its product lineup: it bolsters Alger’s non-U.S. offerings at a time when global growth opportunities (and client demand for them) are rising. It’s also noteworthy from a culture/ESG perspective – Alger highlights that it is now a “committed women-owned, minority-led firm in its third generation,” referencing the fact that Redwood’s co-founder Jennifer Silver will continue to lead and that Dan Chung (Alger’s CEO) is Asian-American. Integrating Redwood is a top development for Alger; clients should expect to see enhanced global content in Alger’s communications and perhaps new global products leveraging Redwood’s expertise.
Product Innovation – Active ETF Launches: Alger has been entering the ETF space. The marquee launch was the Alger 35 ETF (symbol: ATFV) in 2021, which was one of Alger’s first ETFs. This ETF holds 35 high-conviction stocks across market caps, essentially an ultra-focused version of Alger’s all-cap strategy. Importantly, it was named to honor the 35 Alger employees lost on 9/11, and Alger donates a portion of the ETF’s management fee to charities in their memory. Following ATFV, Alger has been exploring additional ETFs as a way to deliver its strategies in a modern wrapper. In 2022–2023, it launched a couple of semi-transparent ETFs (which disclose holdings with a lag) to offer strategies like Alger Large Cap Growth in ETF form without giving away trade secrets daily. The firm is also considering ESG-oriented or thematic ETFs that align with its growth expertise. These moves show Alger’s willingness to adapt product structures (even while the underlying approach remains active stock picking).
Performance & Market Position (2022-2023): Alger’s performance saw ups and downs recently. In 2022, growth stocks saw a major correction with rising interest rates – many Alger funds had difficult performance in that year. However, 2023 saw a resurgence of growth (especially mega-cap tech), and Alger’s portfolios benefited. For instance, Alger’s large cap strategies with positions in NVIDIA, Meta, etc., likely had a strong 2023 rebound. Alger’s Small Cap Focus Fund, managed by Amy Zhang, continued to perform well relative to peers, landing her and the fund in the press as a top quartile performer. Alger’s team commentary in 2023 often discussed AI as a multi-year growth driver (hence the AI strategy launch), and how they were positioning in quality growth names that had become undervalued in 2022’s selloff.
Major Investments, Exits or Deals in Portfolio: Alger’s style doesn’t involve corporate “deals” like a private equity firm would, but notable within the portfolios:
· Several Alger-held companies had M&A events. For example, if Alger held a mid-cap that got acquired at a premium (say a biotech being bought by Pfizer), that would be a win; Alger did benefit from some acquisitions in the healthcare space recently.
· On the flip side, Alger exited some long-time positions where they felt the story changed. It’s known in industry circles that Alger significantly cut back on Chinese tech stocks in 2021–2022 due to regulatory concerns – effectively a strategic exit from certain emerging market positions to manage risk.
· Alger also reportedly rotated more into large-cap high-quality growth names during the volatile period (reducing some smaller speculative growth names). This repositioning by the team was a tactical shift in late 2022 that set up strong results in 2023 as market leadership narrowed to quality large-caps. It’s a reminder that Alger, while long-term, will adjust to market regimes.
Client/Business Developments: In 2023, Alger’s institutional business saw some wins – e.g., they secured a mandate from a European pension for a global growth strategy (hypothetical example based on trends). The partnership with La Française (French asset manager) continued to yield flows into Alger’s SICAV sub-funds in Europe. The firm also marked its 60th anniversary in 2024, which was celebrated in some of their communications (Alger was founded in 1964 – hitting 60 years in business). Alger launched a campaign “Alger at 60” reflecting on its history and future. This included some content (like a video or website feature) highlighting three generations of leadership and the firm’s evolution.
In summary, the recent developments at Alger show a firm balancing innovation with heritage. They are adding new capabilities (global reach via Redwood, new ETF vehicles, thematic strategies) while reinforcing what they’re known for (growth equity excellence, as evidenced by strong comeback performance in 2023). For a prospective employee or client, these developments signal that Alger is dynamic and adapting – it’s not resting on its laurels, but actively positioning for the future of growth investing.
9. Careers, Jobs & Internships
Job listings on Investor Strides.
Company website: https://www.alger.com/
Fred Alger Management is a boutique firm, and as such offers a work environment with significant exposure and learning opportunities for those interested in investment careers – but also high expectations. Here’s an overview of career-related aspects:
9.1. Interview Process
The interview process at Fred Alger Management for investment roles is known to be rigorous and multi-round, aiming to test a candidate’s technical skills, cultural fit, and passion for growth investing.
· Initial Screening: Typically, the process begins with a phone or video interview with HR or a hiring manager. This is to go over the resume, discuss why the candidate is interested in Alger, and assess basic communication skills. For entry-level roles (like Research Associate), they may also include a few basic technical or market questions here (e.g., “Tell me about a stock you follow” or “What do you know about growth investing?”).
· First Round – Junior Team Members: The next stage often involves interviews (by phone or in-person) with one or two junior members of the team (analysts or associates). These interviews delve into the candidate’s financial knowledge and analytical skills. Candidates might be asked about current market events, to walk through a financial statement, or simple valuation questions. They may also be asked behavioral questions about teamwork, handling deadlines, etc. The idea is to filter for solid fundamentals and interest in investing.
· Case Study or Stock Pitch: Alger often asks candidates (especially for investment roles) to prepare a stock pitch or do a case study. For a stock pitch, the candidate would present an investment idea (often a growth stock) to a panel. They’d be expected to explain the company’s business, why it’s a good investment, what the growth drivers are, and perhaps touch on valuation. The interviewers will probe deeply – asking about risks, how the idea was sourced, etc. If it’s a case study, they might give a hypothetical scenario or some financial data and ask the candidate to analyze it.
· Superday/Panel Interviews: Final rounds at Alger can be a “super day” format where the candidate meets multiple people back-to-back, including senior analysts, portfolio managers, and possibly C-level (Dan Chung or others, especially for small firm fit). These interviews will mix technical questions with higher-level discussions. One distinctive aspect known from anecdotal feedback is that Alger’s interviewers really press on thought process – they may give brainteasers or very abstract problems to see how candidates think on their feet. For example, brainteasers or questions like “How many gas stations are there in the US?” might be used to gauge analytical reasoning.
· Cultural Fit: Given Alger’s size and tight-knit culture, cultural fit is important. Late-stage interviews often assess whether the candidate is entrepreneurial, can take initiative, and truly has a passion for growth investing. They might be asked things like how they deal with setbacks, examples of their work ethic, or how they stay informed about markets.
· Reference Checks and Offer: If all goes well, Alger will conduct reference checks. Being a smaller firm, sometimes Dan Chung or a top PM will personally call a reference to get a sense of the candidate (especially for more senior hires). Offers are then extended, often with a prompt timeline for response.
For internships or junior roles, the process may be slightly abridged (maybe fewer rounds), but the core elements (stock pitch, multiple interviews) still apply. Support and non-investment roles (like marketing or operations) will focus more on relevant skills for those areas, but for anything front-office, expect an investment acumen component.
9.2. Interview Preparation
To succeed in Alger’s interviews, candidates should prepare extensively in the following ways:
· Stock Pitch Mastery: Be ready to pitch at least one stock (preferably a growth stock) that you know well. The pitch should be structured (thesis, background, why it’s mispriced, catalysts, risks). Given Alger’s focus, choose a company exhibiting “positive dynamic change” (e.g., a tech company with a new innovation, or a retailer with a new business model). Practice answering tough follow-ups on your idea.
· Financial Fundamentals: Review accounting and valuation basics. Alger interviewers might ask you to walk through how the three financial statements connect or to explain concepts like DCF, EBITDA multiples, etc. Make sure you can interpret key ratios (margin, ROE) and what they mean for growth.
· Brainteasers/Problem Solving: Be prepared for off-beat analytical questions. Practice thinking aloud logically. If asked something like, “How many iPhones were sold in the US last year?”, break it down into a structured estimation. They likely care more about approach than exact numbers.
· Study Alger’s Background: It leaves a good impression if you know about Alger’s history, AUM, key people, and philosophy. You might be able to reference a recent Alger insight or news (for example, knowing that they acquired Redwood, or that Dan Chung was on a certain podcast). This shows genuine interest.
· Know Why Alger: Be clear on why you want this firm. Because it’s smaller, Alger wants to hire people truly excited about growth investing and about their firm. Maybe it’s the legacy of the Alger family, or the chance to have more impact in a boutique setting – articulate a thoughtful reason beyond “it’s a job.”
· Behavioral Prep: As with any interview, prepare examples of leadership, teamwork, and overcoming challenges. Alger’s culture expects a lot from people (long hours, accountability), so you might be asked about handling heavy workloads or giving/receiving feedback.
· Current Events & Markets: Be up to speed on market news, especially in growth equities. Know what the NASDAQ or S&P has been doing recently, what’s happening with interest rates and growth stocks. An interviewer might ask your view on “Are we in a bubble?” or “How do macro conditions affect growth investing?” – you should have a perspective.
In summary, preparation for Alger’s interview should blend investment knowledge, firm-specific research, and practiced problem-solving. The goal is to demonstrate you have the analytical chops and the passion to thrive in Alger’s intensive, growth-focused environment.
9.3. What They Look for in Candidates
Fred Alger Management is quite selective, especially for front-office investment roles. The ideal candidate (whether for an entry-level research role or a more senior position) tends to have:
· Passion for Growth Investing: They seek people who genuinely get excited about finding the next big growth story. In interviews and on the job, showing enthusiasm for discovering innovative companies or market trends is key.
· Strong Analytical Skills: A solid analytical foundation is crucial. This could be demonstrated through academic excellence (top schools, high GPA in finance or a quantitative field), professional credentials (CFA, etc.), or prior experience in investment research. They want people who can parse data, build models, and identify what matters in a business.
· Initiative and Curiosity: Alger’s culture values those who are self-starters. Because the firm is smaller, they don’t have layers of bureaucracy; they need employees who will dig on their own. For an analyst, that means if you’re researching a stock, you go beyond surface-level – maybe you arrange calls with industry experts or teach yourself a new technique to analyze alternative data.
· Communication Skills: Analysts and PMs at Alger must communicate their ideas effectively – to convince internally and also potentially to clients. So candidates who can articulate a stock thesis clearly (both in writing and speaking) have an edge. Even junior folks at Alger present to the team regularly.
· Cultural Fit: Alger tends to have a collegial but driven atmosphere. People often describe it as having a familial feel (given the Alger family influence) but with high standards. A good fit is someone who can work hard, handle pressure, and also collaborate respectfully. They might prefer someone who is humble and hungry over someone who is overly flashy or individualistic – since it’s a team game at a small firm.
· Resilience: Given Alger’s history (rebounds after 9/11, market ups/downs), they appreciate resilience. In a candidate, that could mean someone who has shown grit – maybe overcame a hardship, or worked full-time through school, or simply has the attitude of persevering through challenges. Investing is not a straight line, and neither is a career.
· Alignment with the Mission: Especially for senior hires, Alger will look for alignment with their philosophy. If someone is more of a value-investing enthusiast, they might not mesh well. But if, say, a PM candidate has a track record in growth equities and buys into Alger’s focus on change, that’s a strong positive.
· Interest in Long-Term Career: Turnover at Alger among investment staff isn’t extremely high – many stay for years. They likely favor candidates who express that they are looking for a place to build a career, not just a short stint. The partnership program (for key contributors) is an incentive for those who commit long-term.
For non-investment roles (marketing, etc.), many of these traits still apply (passion, initiative, cultural fit) but with the specific skillset in mind. In marketing, for instance, someone who understands the product and can convey it creatively would stand out.
9.4. Salary & Compensation for Investment Roles
Alger is known to pay competitively to attract and retain talent, especially given its private ownership and performance-driven culture. While specific numbers can vary and aren’t publicly disclosed in detail, here are some general insights based on industry data and anecdotal reports:
· Base Salaries: For a Research Associate or Junior Analyst right out of an MBA or undergrad, base salaries might be in the range of $80k–$120k, depending on experience and education (with MBAs on the higher end). Mid-level analysts or senior analysts could see base salaries from $150k up into the $200k+ range. Portfolio Managers and executives have much higher bases, potentially $300k–$500k or more, but a larger portion of their pay is bonus.
· Bonuses: Alger tends to emphasize bonuses for investment staff to reward performance. For junior analysts, bonuses can be as much or more than the base (so a junior could get, say, a $90k base and a $50k–$90k bonus, making total comp ~$140k–$180k if performance is good). As you move up, the bonus portion grows. A senior analyst might get a bonus equal to 1-2x their base or more, tied to personal and fund performance. Portfolio managers could receive bonuses that are multiples of their base (in strong years, a PM could potentially earn seven figures when you include bonus).
· Equity/Partnership: A unique aspect at Alger is the Alger Partners Plan – essentially an internal profit-sharing or equity-like program for key contributors. While not equity in the public sense (since Alger is private), it likely grants a share of the firm’s profits or growth to participants. This is reserved for top people (PMs, long-tenured analysts, leadership). Being named a Partner can significantly boost one’s long-term compensation and aligns incentives with the firm’s success.
· Other Benefits: Alger offers typical benefits (health insurance, etc.) and, being a family-influenced firm, likely has a decent retirement savings plan, possibly profit-sharing contributions to 401(k). Work-life benefits might not be as emphasized given the demanding nature of the industry, but Alger’s small size often means a tighter-knit community – for example, they might have firm-wide gatherings, charity events (the Alger family is known for philanthropy), and recognition programs.
· Pay for Performance: It’s worth noting that if Alger’s funds have a tough year and bonuses shrink, the upside in good years is also high. They might have discretionary bonus pools that expand in years the firm does well. So there can be volatility in annual comp – something a true investor would accept as part of aligning with performance.
· Comparison: Compared to large banks or asset managers, Alger’s total comp for a given level might be similar or even higher for top performers, but there’s less “guarantee.” At a huge firm, a mediocre year might still yield a decent bonus; at a place like Alger, everyone’s more directly impacted by the firm’s results. However, Alger’s boutique status can sometimes allow high performers to be noticed and rewarded more than they would be at a bigger firm where they’re one of many.
For roles like marketing or operations, the pay is likely more standard and not as high as front-office. But even there, being in New York and finance, salaries would be competitive (for example, a marketing VP might earn total $150k–$250k depending on seniority).
9.5. Workplace Culture and Environment
The culture at Alger is shaped by both its legacy as a family-founded firm and the realities of being a competitive investment manager. Key elements of the work environment include:
· Intense but Passionate Atmosphere: People at Alger are passionate about growth investing, which means they are deeply engaged in their work. It’s the kind of place where discussions about a new tech IPO or a biotech breakthrough happen in the hallways. The flip side is that expectations are high; one former employee described it as a “only the paranoid survive” kind of environment – indicating you’re always expected to be on top of things.
· Lean Teams = Big Responsibilities: With relatively small teams, employees often wear multiple hats. A junior analyst might not only crunch numbers but also write parts of a client report, help with marketing materials, etc. This can be a great learning opportunity but also means long hours and sometimes feeling stretched. It’s not a 9-to-5 place; late evenings, especially during earnings season, are common.
· Family and Legacy: The Alger family presence adds a certain old-school touch. Fred Alger’s values – like integrity, determination – are often cited in internal messaging. And Dan Chung, while not an Alger by name, is family and carries that torch. This can make the culture feel more personal than a typical firm; for example, in tough times (like after 9/11) there was a sense of pulling together. There’s pride in the firm’s perseverance.
· Entrepreneurial Mindset: Because Alger is not a huge corporation, there is less formal training or structured programs. New hires are often expected to figure things out by apprenticeship and initiative. The benefit is that if you have a great idea or want to start a project (say, a new research process or a whitepaper series), you can often just do it without much red tape. Resourcefulness is a valued trait.
· Collaboration and Access: The firm’s size also means high access to leadership. As a junior, you might sit in the same investment committee meeting as the CEO. PMs and analysts collaborate closely, and ideas can come from anywhere. There isn’t a huge hierarchy in day-to-day interactions – Dan Chung might pop by an analyst’s desk to ask what they think about a stock.
· Work-Life Balance: It’s finance in NYC, so work-life balance is not a bragging point. However, Alger isn’t known as a sweatshop; it’s demanding but not for the sake of being punitive – it’s because people are genuinely working hard on investments. There’s an understanding that markets sometimes demand odd hours (e.g., if big news hits on a weekend, you might be analyzing it Sunday). Pre-pandemic, face time in the office was important. Post-pandemic, like many firms, Alger likely offers some flexibility, but given the collaborative culture, they lean towards in-person teamwork.
· Training & Development: Alger doesn’t have a formal big analyst training program like a bulge-bracket bank. Development is more apprenticeship-style. Senior analysts mentor juniors through working on live projects. They also encourage the CFA program for those interested – having CFA charters among staff is common. Because of the size, good performance is rewarded not just in pay but in being given more responsibility quickly.
· Diversity and Inclusion: Historically, finance (and growth equity in particular) hasn’t been very diverse. Alger’s workforce, especially leadership, has been somewhat traditional. However, recent moves (like highlighting a women-led acquisition, promoting Amy Zhang and others) show a push for diversity. The culture is described as meritocratic – if you perform, you advance – regardless of background. But like many firms, they are likely still working on improving diversity and inclusion in meaningful ways.
· Employee Feedback: Employee reviews often mention that Alger offers great learning opportunities but can be challenging day-to-day. Some praise the mentorship and the thrill of being at a storied firm, while others note that it can be “sink or swim.” The CEO approval ratings for Dan Chung are moderate, suggesting that while many employees respect him as a smart investor and principled leader, there are also critiques of management approach. Internally, though, Dan is seen as approachable and deeply knowledgeable.
In essence, working at Alger means being part of a storied boutique with a lot of heritage, where you can make an impact if you’re good – but nothing will be handed to you easily. The culture rewards those who are all-in on growth investing.