Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Alger to target UK investors with double fund launch

Alger to target UK investors with double fund launch

US asset manager Alger is targeting the UK market with a concerted funds push.

The firm is launching US Dynamic Opportunities and Emerging Markets funds into the UK, and has established a London office. Subject to regulatory approval, both funds are expected to launch in May.

CEO Dan Chung told Wealth Manager: ‘The UK is an important base for us, and we are bringing both funds to our European clients, which are aimed at delivering growth with a lower volatility.’

Managed by 'growth investors' Chung, Patrick Kelly and Greg Adams, the hedged long/short US equities strategy will be seeded with $66 million (£39.5 million).

Since inception in November 2009, its equivalent fund for US investors, the Dynamic Return Strategy delivered 8.74%, outperforming the S&P 500’s 7.46% rise. 

'US equities are still underestimated by European investors,' Chung said. 'Valuations are not at all-time highs, because while the market has moved up to historical highs, valuations have only gone up just above average.'

The emerging market strategy is managed by Deborah Velez Medenica, former head of emerging market equities at PineBridge (AIG).

Its US equivalent has returned 1.74% since inception in December 2010, an MSCI EM Index rise of 0.98%. The fund focuses on unappreciated stocks, and plays the restructuring of state-owned enterprises and consumer spending.

'I think it's a very opportune time to be in the EM, which are cheap. They are trading at considerable discounts against developed markets, between 10% and 20% in some cases,' Chung explained. 'There are a lot of opportunities in EM to find these unappreciated stocks.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

Do not miss the first two minutes of this film as Richard Buxton shares how he has been challenged by a client for owning shares in a certain company.

Play CEO Tapes: the huge opportunities for asset managers

CEO Tapes: the huge opportunities for asset managers

From tech disruption, retirement and poaching, the CEO discuss the opportunities for their businesses in this episode.

Play CEO Tapes: 'we're just a bunch of white dudes sitting here'

CEO Tapes: 'we're just a bunch of white dudes sitting here'

In our brand new series, eight CEOs discuss how the industry could do a better job for female fund managers.

Read More
Your Business: Cover Star Club

Profile: Kevin Doran's formula for success at AJ Bell

Profile: Kevin Doran's formula for success at AJ Bell

From a degree in theoretical physics to teaching and becoming one of the youngest chief investment officers in the UK, Kevin Doran has certainly had an interesting career.

Wealth Manager on Twitter