Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Viewpoint - Mid-cap stocks are currently trading at a significant discount of 30% compared to large-cap stocks, presenting a unique investment opportunity for those willing to explore beyond the popular large-cap market [2]. Valuation and Market Trends - Historically, mid-cap stocks have traded at par or even at a premium to large caps due to their faster growth potential [2]. - The valuation discount has widened recently as large-cap technology stocks, particularly early "AI Enablers," have driven larger gains in the market [2]. Performance Metrics - Over the past 30 years, mid-cap stocks have generated annualized returns of 11.2%, compared to 10.9% for large caps, while maintaining a similar risk-adjusted profile with a Sortino ratio of 0.80 versus 0.90 for large caps [3][4]. Macroeconomic Factors - The Federal Reserve's shift from raising interest rates to cutting them may serve as a catalyst for mid-cap outperformance, as these stocks are considered "long duration" assets that typically benefit during rate-cutting cycles [3]. - Lower interest rates are expected to spur merger and acquisition activity, which tends to favor mid-sized companies [3]. Analyst Coverage and Investment Opportunities - Mid-cap stocks receive less analyst coverage than large caps, with an average of 13.5 analysts per mid-cap stock compared to 24.5 for large caps, creating inefficiencies that active managers can exploit [4]. - There are opportunities in mid-sized companies that are adopting artificial intelligence to enhance margins or boost revenue, which remain largely undiscovered by Wall Street [5]. Investment Strategy - The Alger Mid Cap 40 ETF (FRTY) employs a concentrated approach with approximately 40 holdings and an active share of 78%, focusing on companies undergoing "Positive Dynamic Change" through factors like new management or product innovation [6].

Core Insights - The Alger Mid Cap 40 ETF employs an investment strategy focused on approximately 40 mid-cap U.S. equities identified through fundamental, bottom-up research emphasizing "Positive Dynamic Change" [1] - The ETF targets mid-cap stocks as defined by the Russell Midcap Growth or S&P MidCap 400, with flexibility to hold positions outside these ranges [1] - Security selection prioritizes business quality, durable growth drivers, competitive positioning, and management execution, while risk controls address issuer concentration and potential sector biases [1] Investment Strategy - The portfolio construction methodology is actively managed, concentrating on mid-cap equities with high unit volume growth or positive lifecycle changes [1] - Cash may be used tactically within stated limits to manage capacity and liquidity, focusing on a roster of seasoned, exchange-listed names [1] - Positions are sized based on conviction and liquidity, with adjustments made following target-price realization, thesis degradation, or unfavorable changes in fundamentals [1] Turnover and Management - The ETF may experience elevated turnover as holdings are re-rated or catalysts are resolved [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - Fred Alger Management, LLC is a privately held growth equity investment manager with assets totaling $27.4 billion [1] - The company is recognized as a pioneer in actively managed growth equity investing, emphasizing its long-standing commitment to navigating change and embracing disruption [1] - Alger has a history of over six decades focused on investing in innovation [1] Company Overview - Fred Alger Management specializes in growth equity investment management [1] - The firm has been operational for more than sixty years, indicating a well-established presence in the investment management industry [1] - The company’s investment philosophy centers around actively managed strategies that adapt to market changes [1]