Capital Markets Summer 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

Most Innovative Companies 30%

III

Investing based on politics has not worked

IV

Administration

High Domestic Exposure -5%

V

Excess Return During Current

VI

Source: Alger using FactSet Alpha Testing. November 2016 through May 2020. 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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