Capital Markets Spring 2020

IV

Fundamentals > Politics The Election

• Domestically focused companies that should have benefitted from the administration’s policies have actually underperformed while the most innovative companies outperformed

I

‒ Investors may want to consider secular growth companies irrespective of politics

II

14%

15%

Most Innovative Companies

10%

III

5%

0%

-6%

IV

-5%

High Domestic Exposure

-10%

Cumulative Excess Return

V

-15%

VI

Source: Alger using FactSet Alpha Testing. High domestic exposure is companies in highest quintile of U.S. sales as percent of total sales in S&P 500. Most Innovative Companies are the highest quintile of R&D % of sales in the S&P 500. Both are normalized for sector exposure. The performance data quoted represents past performance, which is not an indication or a guarantee of future results.

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