CEO Update and Outlook


Next, e-commerce and retailing. Millions of Americans are using online food ordering and delivery for the first time, and I think it’s quite likely that many will like this way of grocery shopping and will not go back to the physical stores the way they used to. We've seen credit card data says that spending is down 36% just last week, but e-commerce spending is up 27%. That trend is clearly happening not just at Amazon but across the e-commerce retailing landscape. And we think that you'll see increased investments in e-commerce capabilities across retailers, department stores, brands, businesses. Finally, healthcare. We are trying to think about how we can support and honor the work that our healthcare workers are doing on the front lines. And along with them, the logistics and transportation workers and, of course, first responders who are keeping us all able to be home and safe. But in healthcare there's going to be some major changes. We've already liked the trends of digital diagnostic and analysis tools. We're going to see that it will be vital for our national security and handling the next crisis in a quicker way. Obviously things like better, quicker testing, rapid drug development platforms – we think those will continue to see, and maybe even see increased, interest in investment and adoption. The most important frontline is the delivery of actual healthcare services to people in my opinion. And we had already, prior to the crisis, been investors in and liked trends like telemedicine, robotic surgery, electronic medical records and the companies that provide these tools. Telemedicine has seen a tremendous surge in adoption to respond to the crisis. But it is also one we'd done some surveys already with doctors who indicate that actually they like seeing patients as efficiently without actually personal exposure, but they like using it with their patients, and their patients like using it. I think this is a trend that we'll see after this crisis is over. It will be viewed as a much more efficient way to deliver medical care, primary and otherwise. We believe we'll see that adoption curve accelerate after this, as well as other kinds of improvements in healthcare delivery. Those are

some of the major themes that we're seeing that are benefiting from, or at least seeing increased adoption from, the crisis.

Brad Neuman : I think your comments are so interesting because, at a time when, from a financial perspective, so many investors are thinking about risk and downside, that there's actually opportunity – financial opportunity created out of this terrible situation. I think it's something that a lot of folks don't spend a lot of time on and maybe aren’t aware of. You painted a positive long-term view – both for the asset class, and growth stocks in particular, and these themes. But for investors who don't want to add a lot of exposure to equities and aren't getting the returns they need from fixed income with yields being so low now, partially as a result of this pandemic, what do you suggest they do with their capital? Dan Chung : As I said earlier, I think most investors, as a result of market action, are going to be over-weighted to cash and bonds and underweighted to equities. I think sound financial advice is you want to maintain your discipline around your allocations so this is the time to reallocate to equities as a result of the market moves. I of course also understand perfect timing – no one has it. I don't have it, Alger doesn't have it, and no one should try to perfectly time any of this. So how do you maintain the discipline but also of course reflect the fact that the near-term concerns are still very high and there is a lot of uncertainty? The strategy is Alger Dynamic Opportunities, which is our long/short strategy. This is benefiting from Alger’s time-tested philosophy in my opinion. The long part of the portfolio reflects what we believe are our “best ideas” across all of our strategies, and it's driven exactly by the same process and team of our long-only strategies are, but it doesn't have the full exposure to the stock market because of the shorting.

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