Core Viewpoint - Growth stocks are exhibiting stronger fundamentals compared to value stocks, with higher earnings growth and healthier balance sheets despite concerns over tariffs and deficits [1] Group 1: Earnings Growth and Financial Health - Growth indices show a projected long-term earnings per share growth of 14.4%, while value indices show only 10.2% [1] - Growth companies maintain healthier debt levels, with net debt at 0.4 times earnings before interest, taxes, depreciation, and amortization, compared to 2.2 times for value companies [1] - Approximately $10 trillion in announced private fixed investment in the U.S. supports these fundamentals, enhancing productivity and industrial capacity [1] Group 2: Investment Cycle and Valuation Metrics - The $10 trillion investment pipeline spans various sectors, including artificial intelligence infrastructure and manufacturing capacity, expected to boost productivity and industrial capacity in the coming years [1] - Traditional valuation metrics may become less effective in assessing companies whose value is increasingly driven by intangible assets, such as software and intellectual property [1] - A research-driven approach is essential to identify companies positioned for long-term innovation-led growth, as modern growth businesses often do not fully reflect their value in traditional accounting measures [1] Group 3: Growth Investing Strategy - The Alger 35 ETF takes a focused approach to growth investing, holding 35 companies identified through fundamental research as having promising growth potential [1] - The fund, launched in May 2021, currently has assets of $124 million and carries a 0.55% expense ratio [1] - The combination of superior earnings growth, stronger balance sheets, and a developing capital investment cycle suggests that growth stocks may be better positioned than traditional metrics indicate [1]

Core Insights - Fred Alger Management, LLC has surpassed $600 million in assets under management for its suite of ETFs, highlighting its strong investment performance in innovative companies with long-term growth potential [1][2] - The Alger 35 ETF (ATFV) has outperformed the S&P 500 by 2,102 basis points this year, delivering a total return of 39.85% as of September 30, 2025 [2][3] - The Alger AI Enablers & Adopters ETF (ALAI) and Alger Concentrated Equity ETF (CNEQ) have also shown strong performance, with returns of 42.71% and 35.91% respectively, significantly exceeding the S&P 500's return of 14.83% [3][4] Company Overview - Founded in 1964, Fred Alger Management is recognized as a pioneer in growth-style investment management, focusing on companies undergoing Positive Dynamic Change [6] - The company is privately held and headquartered in New York City, managing approximately $32.8 billion in assets [1][6] - Alger's investment philosophy emphasizes identifying transformational and disruptive growth companies, particularly in the context of accelerating AI adoption [2][4] ETF Performance - The Alger 35 ETF (ATFV) has shown impressive annual returns, with a year-to-date return of 39.85% and a one-year return of 59.36% as of September 30, 2025 [7] - The Alger AI Enablers & Adopters ETF (ALAI) has delivered a year-to-date return of 42.71% and a one-year return of 61.95% since its inception in April 2024 [8] - The Alger Concentrated Equity ETF (CNEQ) has achieved a year-to-date return of 35.91% and a one-year return of 52.58%, also since its launch in April 2024 [9] Strategic Focus - Alger's ETFs are actively managed, with a focus on high-conviction holdings in sectors poised for growth, particularly in AI and technology [4][5] - The company aims to provide a diverse range of investment strategies to meet the needs of financial advisors and their clients, with actively managed ETFs being a key component of their growth-focused approach [5]