ATFV concentrates capital in just 35 growth stocks that Alger believes can compound at exceptional rates. This is active management distilled to its essence — a high-conviction portfolio where every position must earn its place through fundamental research rather than index membership.
How It Works
The fund employs Alger's growth-at-a-reasonable-price methodology to identify companies with sustainable competitive advantages and long runways for expansion. Unlike typical growth funds that hold 50-100+ names, this concentrated approach means each stock represents roughly 3% of the portfolio. The managers actively rebalance based on valuation and growth prospects, not market cap weights.
Key Features
- Ultra-concentrated 35-stock portfolio versus 500+ in typical growth funds
- Active stock selection in ETF wrapper — rare combination of conviction and liquidity
- No expense ratio currently charged, making active management essentially free
Risks
- Single stock blow-ups hurt more when you only own 35 names — one 20% decline hits the fund for 0.6%
- Growth stock correlation means the whole portfolio can crater together in risk-off markets
- Manager risk is amplified — bad stock picks have nowhere to hide in this concentrated format
Who Should Own This
Best suited for investors who want growth exposure but are tired of owning the same mega-cap tech names through every index fund. The zero expense ratio makes this an interesting satellite holding for those willing to bet on active management. Not for anyone who gets nervous when individual positions exceed 3% of their portfolio.