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15 important things you should know about Alger ALAFX mutual fund

Updated: September 27, 2020
50
Bull Case
  • 3-year return above the benchmark
  • 5-year return above the benchmark
  • 10-year return above the benchmark
Bear Case
  • Low net assets
  • High expense ratio
  • Sales load and/or distribution fees

Before we start: if you’re looking for ALAFX “stock” price, you can quickly find it out by visiting Finny and typing "ALAFX quote". If you’re looking for a quick scoop on ALAFX "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "ALAFX". You’ll get all this info in one place.

Are you looking to buy or sell ALAFX? Or perhaps you’re looking for ALAFX fact sheet, and learn about its alternatives? If so, you came to the right place.

In this ALAFX mutual fund review, we’ll address key questions our readers have been asking us about this fund, above and beyond what you can find in its prospectus, and on Morningstar or Yahoo Finance.

Here is what you’ll be able to find in this review:

  • Fact Sheet: ALAFX performance, returns, expense ratio, holdings and dividend yield;
  • Analysis: ALAFX buy or sell; the pros and cons of investing in ALAFX mutual fund;
  • Alternatives: other ETFs and mutual funds you should consider as alternatives to ALAFX.

And here is the list of questions we’ll answer:

  1. Describe Alger Institutional Funds: Alger Capital Appreciation Focus Fund; Class A Shares (ALAFX).
  2. What are ALAFX holdings?
  3. What is ALAFX performance? What are ALAFX historical returns?
  4. How many up and down years did ALAFX have historically?
  5. What is ALAFX dividend yield?
  6. What is ALAFX minimum initial investment amount?
  7. What is ALAFX expense ratio?
  8. Does ALAFX have any sales loads or 12b-1 distribution expenses?
  9. What is ALAFX tax efficiency (tax-cost ratio)?
  10. What is ALAFX beta? How would you assess ALAFX risk?
  11. What is ALAFX Sharpe ratio?
  12. What is ALAFX Finny Score? ALAFX buy or sell?
  13. What are the pros of investing in ALAFX? What are ALAFX buy reasons?
  14. What are the cons of investing in ALAFX? What are ALAFX sell reasons?

So let’s start. Scroll down to the question that interests you the most.

Fact Sheet

1. Describe Alger Institutional Funds: Alger Capital Appreciation Focus Fund; Class A Shares (ALAFX).

The Fund seeks long-term capital appreciation by investing in common stocks of companies which appear, on the basis of original research, to have unusual appreciation potential, due to high unit volume growth or major life cycle change.

2. What are ALAFX top holdings?

ALAFX has 50 stock holdings and 0 bond holdings.

The top 10 holdings represent 54.11% of total assets. Here are the top holdings:

Name Symbol % Assets
Amazon.com Inc AMZN 10.28%
Microsoft Corp MSFT 9.29%
Apple Inc AAPL 5.49%
Alphabet Inc Class C GOOG 4.94%
Visa Inc Class A V 4.84%
Alibaba Group Holding Ltd ADR BABA 4.62%
Facebook Inc A FB 4.35%
Fidelity National Information Services Inc FIS 3.84%
Danaher Corp DHR 3.66%
UnitedHealth Group Inc UNH 2.80%

3. What is ALAFX performance? What are ALAFX historical returns?

ALAFX has generated the following returns:

  • 1-month return is -3.11%;
  • 3-month return is 9.91%;
  • 1-year return is 38.69%;
  • 3-year return is 23.10%;
  • 5-year return is 19.47%;
  • 10-year return is 16.45%.

4. How many up and down years did ALAFX have historically?

In the last 10 years, ALAFX had 9 up years and 1 down year.

ALAFX up and down years

5. What is ALAFX dividend yield?

ALAFX yield is 0.06%.

6. What is ALAFX minimum initial investment amount?

ALAFX minimum initial investment amount is $1.00K.

7. What is ALAFX expense ratio?

ALAFX expense ratio is 1.03%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

ALAFX expenses

8. Does ALAFX have any sales loads or 12b-1 distribution expenses?

ALAFX 12b-1 distribution fee is 0.25. ALAFX front-end sales load is 5.25. ALAFX back-end sales load is 0.

9. What is ALAFX tax efficiency (tax-cost ratio)?

  • 1-year ax cost ratio is 0.53%;
  • 3-year ax cost ratio is 0.96%.
ALAFX tax costs

10. What is ALAFX beta? How would you assess ALAFX risk?

  • 3-year beta is 1.00;
  • 5-year beta is 1.02;
  • 10-year beta is 1.02.
ALAFX Beta

11. What is ALAFX Sharpe ratio?

  • 3-year Sharpe ratio is 1.08;
  • 5-year Sharpe ratio is 0.94;
  • 10-year Sharpe ratio is 1.09.
ALAFX Sharpe ratio

Analysis

12. What is Finny Score? buy or sell?

Finny Score is 50. Our quantitative analysis shows 3 reasons to buy and 3 reasons to sell it, resulting in the Finny Score of 50.

13. What are the pros of investing in ALAFX? What are ALAFX buy reasons?

The following are ALAFX strengths from our perspective:

  • <strong>ALAFX 3-year return</strong> is 23.1%, which is higher than the 3-year return of the benchmark index (Russell 1000 Growth TR USD), 20.37%.
  • <strong>ALAFX 5-year return</strong> is 19.47%, which is higher than the 5-year return of the benchmark index (Russell 1000 Growth TR USD), 18.45%.
  • <strong>ALAFX 10-year return</strong> is 16.45%, which is in line with the 10-year return of the benchmark index (Russell 1000 Growth TR USD), 17.09%.

14. What are the cons of investing in ALAFX? What are ALAFX negatives?

The following are ALAFX weaknesses from our perspective:

  • <strong>ALAFX net assets</strong> are $57.40 million. This fund is not a popular choice with retail investors.
  • <strong>ALAFX expense ratio</strong> is 1.03%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
  • Warning: this fund has a 12b1 and front-end sales fee. The maximum 12b1 fee is 0.25%, while the maximum front-end sales load is 5.25%. A 12b-1 fee is an annual marketing or distribution fee on a mutual fund. Front-end sales load, also known as sales charge, is a fee paid when mutual funds shares are purchased. Those fees are subtracted from your total investable assets.
In the ALAFX review, we covered ALAFX key stats (return, performance, yield, expense ratio, and holdings), buy and sell analysis, and alternative investments. If this review was helpful to you, feel free to check out other mutual fund and ETF reviews.
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