Recently, Dr. Ankur Crawford, portfolio manager at Alger, joined Todd Rosenbluth, VettaFi's head of research, to discuss this very topic. Dr. Crawford manages the Alger Concentrated Equity ETF (CNEQ), applying Alger's investment philosophy within a high-conviction portfolio of innovative large-cap companies. Why Concentrated Equity Strategies Matter What can a focused approach to equity portfolio construction offer for advisors and investors? Getting started, Rosenbluth first asked Dr. Crawford to explain w ...

Core Insights - The adoption of AI is a critical focus for both advisors and investors, with a keen interest in identifying leading companies in this space [1] - Dr. Ankur Crawford emphasizes that historical performance may not predict which companies will benefit most from AI, as technological shifts can create new industry leaders [2][3] Group 1: AI Adoption and Company Performance - The pace of AI adoption is more crucial than whether companies are adopting it, with some companies better positioned due to their technological infrastructure [3] - There are significant differences in AI adoption rates across various sectors, highlighting the need for active management to navigate these changes effectively [3] Group 2: Alger Concentrated Equity ETF (CNEQ) - The Alger Concentrated Equity ETF (CNEQ), managed by Dr. Crawford, aims for long-term capital appreciation through a concentrated equity portfolio based on fundamental research [4] - CNEQ has a notable tilt towards technology, with Information Technology and Communication Services making up approximately 52% and 15% of the portfolio, respectively, as of September 30, 2025 [5] - The fund has shown positive performance, with a year-to-date NAV increase of 37.61% as of November 10, 2025 [5]

Core Insights - The technology sector has been a significant growth driver for investors over the past few years, dominating the S&P 500 for over two decades [1][2] - Despite concerns about high valuations, the tech sector is expected to continue delivering growth through innovation, particularly in artificial intelligence and cloud computing [2][3] Technology Sector Overview - The tech sector's growth is fueled by ongoing innovation, especially in AI and cloud computing, which raises concerns about whether current valuations can be sustained [2] - The sector is believed to be in a prime position for dynamic growth due to increasing AI adoption and the demand for AI infrastructure [3] Investment Strategy - A large-cap strategy with a focus on the tech sector may provide a viable investment path, exemplified by the Alger Concentrated Equity ETF (CNEQ) [4] - CNEQ is an actively managed fund that aims for long-term growth by maintaining a disciplined portfolio of 30 holdings or fewer, allowing for targeted investment in high-potential companies [5] Fund Composition - As of September 30, 2025, over 50% of CNEQ's portfolio is allocated to the information technology sector, despite being sector-agnostic [6] - CNEQ includes leading tech companies such as Nvidia, Microsoft, Alphabet, and Meta, which are capitalizing on growth opportunities in AI [7] Performance Metrics - CNEQ has shown strong performance, with a year-to-date NAV increase of 36.26% as of October 7, 2025, indicating its potential as a solution for advisors focusing on long-term tech sector growth [9]

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]