Alger AI Enablers & Adopters Fund Class C (AAICX)

Overview

The fund described focuses on investing in equity securities of companies across any market capitalization that are poised to benefit significantly from artificial intelligence (AI). The core investment thesis relies on the assumption that companies integrating AI into their operational, product, or service frameworks demonstrate a high growth potential. The fund commits at least 80% of its net assets, along with any borrowings meant for investment purposes, to such companies. These businesses are selected based on their potential to leverage AI in ways that could materially influence their stock performance within a mid-term horizon of twelve to thirty-six months. Importantly, this fund adopts a non-diversified strategy, indicating a focused investment approach rather than spreading risks across a broad spectrum of securities.

Products and Services

• Equity Securities Investment

  The fund specializes in investing in equity securities, which include stocks of companies believed to be significantly impacted by advancements and integration of artificial intelligence. This focuses on a wide array of companies, from startups to established enterprises, offering them a platform to gain investment based on their potential for innovation and growth via AI technologies.

• AI Integration-Based Selection Criterion

  An innovative investment criterion is employed, centering on companies that not only benefit from AI but are also at a juncture where AI integration is expected to drive their market value substantially over the next one to three years. This includes companies at the forefront of AI technology deployment in their products or services, as well as those implementing AI in their operational processes to unlock new efficiencies and competitive advantages.

• Mid-Term Investment Horizon

  With a strategic focus on a twelve to thirty-six months investment horizon, the fund targets companies that are anticipated to manifest significant growth and stock price appreciation within this timeframe. This mid-term outlook enables the fund to capitalize on the transformative impacts of AI on its select investment portfolio, aligning with investors looking for growth opportunities over a similar period.

• Non-Diversified Fund Strategy

  Unlike diversified funds, which spread investments across a wide variety of sectors and companies, this fund adopts a non-diversified strategy. It concentrates its investments in a relatively smaller number of stocks. This allows for a more in-depth analysis and understanding of selected companies, potentially leading to higher returns due to the focused approach, albeit with a higher risk due to less diversification.