Core Insights - The Alger Concentrated Equity ETF (CNEQ) achieved a return of over 32% in 2025, outperforming the S&P 500 by more than 14 percentage points, benefiting from a focused portfolio that adapted to a changing market environment [1][2]. Investment Strategy - CNEQ employs a concentrated investment strategy, holding 30 or fewer large-cap companies identified through fundamental research as having strong growth potential, reflecting Alger's philosophy of investing in firms undergoing "Positive Dynamic Change" [3][4]. - The fund's concentrated approach allows for greater weight on individual positions compared to broader market indexes, which can enhance returns if the portfolio manager successfully identifies companies with strong earnings momentum [4]. Portfolio Composition - The top holdings of CNEQ include major players in artificial intelligence infrastructure such as NVIDIA Corp. (14.09%), Microsoft Corp. (9.63%), Amazon.com Inc. (7.62%), and Meta Platforms Inc. (3.69%) [5][10]. - In addition to large tech companies, the fund also invests in Nebius Group, a specialized GPU-cloud provider, and includes holdings in Taiwan Semiconductor Manufacturing Co., Broadcom Inc., and Apple Inc. [6][10]. Market Trends - Alger's research indicates that the transition to "agentic AI," which involves autonomous systems capable of independent reasoning and action, is expected to significantly increase demand for compute capacity, potentially exceeding current levels by 10 to 100 times [7].

Core Viewpoint - A concentrated equity strategy, such as the Alger Concentrated Equity ETF (CNEQ), offers clarity and accountability in portfolio construction by focusing on a limited number of high-conviction stocks, which can lead to better understanding and alignment with true growth engines of the economy [2][4]. Group 1: Concentrated Equity Strategy - A focused approach provides more clarity in investment decisions, as each holding in a concentrated fund like CNEQ is significant compared to a broad index fund [2]. - Concentrated strategies can help avoid exposure to companies that may face disruption, potentially reducing negative tail risk [3]. - The alignment of capital with high-growth companies rather than diluting it across numerous benchmark names enhances transparency and accountability for investors [4]. Group 2: Investment Philosophy - Alger's investment philosophy emphasizes identifying companies undergoing significant changes, which can be categorized into two types: high unit volume growth and positive life cycle change [4][5]. - High unit volume growth refers to companies experiencing strong demand due to industry growth or market share gains [5]. - Positive life cycle change involves companies that have transitioned from their growth phase and are seeking new opportunities through innovation, management changes, or industry shifts [6]. Group 3: Impact of Artificial Intelligence - The independent power producers (IPPs) in CNEQ's portfolio are benefiting from positive life-cycle changes driven by the impact of AI on power costs, positioning them well for future growth [7]. - The Alger team believes that AI will drive economic growth in unexpected ways, with innovation being the primary market driver rather than macroeconomic factors [8][9]. - Concerns about an AI bubble are dismissed, with the focus instead on compute limitations rather than technological limitations [9]. Group 4: Future Outlook - Investors are encouraged to rethink valuations, time horizons, and market structures as AI continues to reshape the economy [10].

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]