Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and 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 JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: The adviser that tempted Robin Minter-Kemp on board

Profile: The adviser that tempted Robin Minter-Kemp on board

It is rare to meet an impassioned individual who is willing to bang the drum for investment advisory right now

Wealth Manager on Twitter