THE ALGER FUNDS II | ALGER SPECTRA FUNDSchedule of Investments January 31, 2024 (Unaudited)
SHARES | VALUE | |||
COMMON STOCKS—105.8% | ||||
AEROSPACE & DEFENSE—4.7% | ||||
HEICO Corp., Cl. A | 599,291 | $ 84,781,698 | ||
TransDigm Group, Inc. | 53,082 | 58,001,639 | ||
142,783,337 | ||||
APPAREL RETAIL—0.4% | ||||
Burlington Stores, Inc.* | 70,434 | 13,463,459 | ||
APPLICATION SOFTWARE—3.3% | ||||
Adobe, Inc.* | 81,978 | 50,644,369 | ||
ANSYS, Inc.* | 45,335 | 14,862,173 | ||
Cadence Design Systems, Inc.* | 124,057 | 35,785,482 | ||
101,292,024 | ||||
ASSET MANAGEMENT & CUSTODY BANKS—0.2% | ||||
Blue Owl Capital, Inc., Cl. A | 392,819 | 6,104,407 | ||
AUTOMOBILE MANUFACTURERS—1.5% | ||||
Ferrari NV | 33,779 | 11,684,832 | ||
Tesla, Inc.* | 183,726 | 34,410,042 | ||
46,094,874 | ||||
AUTOMOTIVE PARTS & EQUIPMENT—0.5% | ||||
Mobileye Global, Inc., Cl. A* | 554,903 | 14,349,792 | ||
BIOTECHNOLOGY—5.1% | ||||
Amgen, Inc. | 105,474 | 33,146,259 | ||
Immunovant, Inc.* | 185,176 | 6,742,258 | ||
Natera, Inc.* | 955,592 | 63,011,737 | ||
Nuvalent, Inc., Cl. A* | 61,240 | 4,603,411 | ||
Sarepta Therapeutics, Inc.* | 71,310 | 8,485,177 | ||
Vaxcyte, Inc.* | 296,761 | 21,194,671 | ||
Vertex Pharmaceuticals, Inc.* | 42,846 | 18,568,599 | ||
155,752,112 | ||||
BROADLINE RETAIL—9.4% | ||||
Amazon.com, Inc.+,* | 1,526,379 | 236,894,021 | ||
MercadoLibre, Inc.* | 30,124 | 51,566,564 | ||
288,460,585 | ||||
CARGO GROUND TRANSPORTATION—0.7% | ||||
Old Dominion Freight Line, Inc. | 54,054 | 21,136,195 | ||
CASINOS & GAMING—1.2% | ||||
DraftKings, Inc., Cl. A* | 575,622 | 22,478,039 | ||
Flutter Entertainment PLC* | 76,517 | 15,705,579 | ||
38,183,618 | ||||
COAL & CONSUMABLE FUELS—0.5% | ||||
Cameco Corp. | 319,613 | 15,261,521 |
See Notes to Financial Statements.
- 2 -
THE ALGER FUNDS II | ALGER SPECTRA FUNDSchedule of Investments January 31, 2024 (Unaudited) (Continued)
SHARES | VALUE | |||
COMMON STOCKS—105.8% (CONT.) | ||||
COMMUNICATIONS EQUIPMENT—0.4% | ||||
Arista Networks, Inc.* | 41,504 | $ 10,736,255 | ||
CONSTRUCTION & ENGINEERING—0.6% | ||||
Quanta Services, Inc. | 93,467 | 18,137,271 | ||
CONSTRUCTION MACHINERY & HEAVY TRANSPORTATION EQUIPMENT—0.7% | ||||
Wabtec Corp. | 155,944 | 20,517,552 | ||
CONSTRUCTION MATERIALS—1.4% | ||||
Martin Marietta Materials, Inc. | 85,166 | 43,300,098 | ||
ELECTRICAL COMPONENTS & EQUIPMENT—1.1% | ||||
Vertiv Holdings Co., Cl. A | 621,403 | 35,003,631 | ||
ENVIRONMENTAL & FACILITIES SERVICES—2.0% | ||||
GFL Environmental, Inc. | 1,807,270 | 61,392,962 | ||
FINANCIAL EXCHANGES & DATA—1.7% | ||||
S&P Global, Inc. | 115,256 | 51,675,028 | ||
HEALTHCARE DISTRIBUTORS—0.9% | ||||
McKesson Corp. | 56,357 | 28,172,301 | ||
HEALTHCARE EQUIPMENT—3.2% | ||||
Dexcom, Inc.* | 153,025 | 18,569,584 | ||
Intuitive Surgical, Inc.* | 128,404 | 48,564,961 | ||
Stryker Corp. | 55,719 | 18,692,610 | ||
TransMedics Group, Inc.* | 129,762 | 11,129,686 | ||
96,956,841 | ||||
HEALTHCARE FACILITIES—0.9% | ||||
Acadia Healthcare Co., Inc.* | 342,981 | 28,172,459 | ||
HOMEBUILDING—0.3% | ||||
D.R. Horton, Inc. | 66,068 | 9,441,778 | ||
HOMEFURNISHING RETAIL—0.3% | ||||
RH* | 32,077 | 8,130,878 | ||
INDUSTRIAL MACHINERY & SUPPLIES & COMPONENTS—0.2% | ||||
IDEX Corp. | 30,000 | 6,345,000 | ||
INTERACTIVE MEDIA & SERVICES—11.0% | ||||
Alphabet, Inc., Cl. C+,* | 757,612 | 107,429,381 | ||
Meta Platforms, Inc., Cl. A* | 456,251 | 178,001,765 | ||
Pinterest, Inc., Cl. A* | 1,210,208 | 45,346,494 | ||
Snap, Inc., Cl. A* | 534,539 | 8,493,825 | ||
339,271,465 | ||||
INTERNET SERVICES & INFRASTRUCTURE—1.2% | ||||
Cloudflare, Inc., Cl. A* | 55,503 | 4,387,512 | ||
MongoDB, Inc.* | 42,287 | 16,936,789 | ||
Snowflake, Inc., Cl. A* | 82,984 | 16,234,990 | ||
37,559,291 |
See Notes to Financial Statements.
- 3 -
THE ALGER FUNDS II | ALGER SPECTRA FUNDSchedule of Investments January 31, 2024 (Unaudited) (Continued)
SHARES | VALUE | |||
COMMON STOCKS—105.8% (CONT.) | ||||
IT CONSULTING & OTHER SERVICES—0.5% | ||||
EPAM Systems, Inc.* | 56,176 | $ 15,623,107 | ||
LIFE SCIENCES TOOLS & SERVICES—0.5% | ||||
Danaher Corp. | 65,189 | 15,639,493 | ||
MANAGED HEALTHCARE—0.9% | ||||
UnitedHealth Group, Inc. | 56,522 | 28,924,568 | ||
MOVIES & ENTERTAINMENT—3.5% | ||||
Liberty Media Corp. Series C Liberty Formula One* | 601,215 | 40,431,709 | ||
Netflix, Inc.* | 91,357 | 51,535,397 | ||
Spotify Technology SA* | 65,728 | 14,154,525 | ||
106,121,631 | ||||
OIL & GAS EXPLORATION & PRODUCTION—0.8% | ||||
Diamondback Energy, Inc. | 152,704 | 23,476,713 | ||
OIL & GAS STORAGE & TRANSPORTATION—0.8% | ||||
Cheniere Energy, Inc. | 154,121 | 25,274,303 | ||
PASSENGER GROUND TRANSPORTATION—0.3% | ||||
Uber Technologies, Inc.* | 146,381 | 9,554,288 | ||
PHARMACEUTICALS—1.4% | ||||
Eli Lilly & Co. | 68,314 | 44,104,201 | ||
REAL ESTATE SERVICES—2.0% | ||||
CoStar Group, Inc.* | 218,550 | 18,244,554 | ||
FirstService Corp. | 256,498 | 42,996,760 | ||
61,241,314 | ||||
RESTAURANTS—0.3% | ||||
Shake Shack, Inc., Cl. A* | 107,086 | 8,091,418 | ||
SEMICONDUCTORS—16.1% | ||||
Advanced Micro Devices, Inc.* | 324,719 | 54,452,129 | ||
Broadcom, Inc. | 36,267 | 42,795,060 | ||
Marvell Technology, Inc. | 804,485 | 54,463,635 | ||
Micron Technology, Inc. | 314,299 | 26,951,139 | ||
NVIDIA Corp.+ | 434,874 | 267,564,926 | ||
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 435,888 | 49,237,908 | ||
495,464,797 | ||||
SYSTEMS SOFTWARE—15.7% | ||||
Microsoft Corp.+ | 1,147,710 | 456,306,542 | ||
ServiceNow, Inc.* | 34,675 | 26,540,245 | ||
482,846,787 | ||||
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—6.3% | ||||
Apple, Inc.+ | 1,052,864 | 194,148,122 | ||
TRANSACTION & PAYMENT PROCESSING SERVICES—3.3% | ||||
Global Payments, Inc. | 104,574 | 13,932,394 |
See Notes to Financial Statements.
- 4 -
THE ALGER FUNDS II | ALGER SPECTRA FUNDSchedule of Investments January 31, 2024 (Unaudited) (Continued)
SHARES | VALUE | |||
COMMON STOCKS—105.8% (CONT.) | ||||
TRANSACTION & PAYMENT PROCESSING SERVICES—3.3% (CONT.) | ||||
PayPal Holdings, Inc.* | 166,318 | $ 10,203,609 | ||
Visa, Inc., Cl. A | 278,567 | 76,121,219 | ||
100,257,222 | ||||
TOTAL COMMON STOCKS (Cost $1,858,158,514) | 3,248,462,698 | |||
PREFERRED STOCKS—0.2% | ||||
BIOTECHNOLOGY—0.0% | ||||
Prosetta Biosciences, Inc., Series D(a),(b),*,@ | 2,912,012 | — | ||
DATA PROCESSING & OUTSOURCED SERVICES—0.2% | ||||
Chime Financial, Inc.,Series G(b),*,@ | 188,583 | 6,930,425 | ||
TOTAL PREFERRED STOCKS (Cost $26,129,444) | 6,930,425 | |||
SPECIAL PURPOSE VEHICLE—0.3% | ||||
DATA PROCESSING & OUTSOURCED SERVICES—0.3% | ||||
Crosslink Ventures C, LLC, Cl. A(a),(b),*,@ | 6,595,008 | |||
Crosslink Ventures C, LLC, Cl. B(a),(b),*,@ | 4,105,056 | |||
10,700,064 | ||||
TOTAL SPECIAL PURPOSE VEHICLE (Cost $11,925,000) | 10,700,064 | |||
Total Investments (Cost $1,896,212,958) | 106.3% | $3,266,093,187 | ||
Affiliated Securities (Cost $25,029,054) | 10,700,064 | |||
Unaffiliated Securities (Cost $1,871,183,904) | 3,255,393,123 | |||
Securities Sold Short (Proceeds $196,942,094) | (6.5)% | (200,718,970) | ||
Other Assets in Excess of Liabilities | 0.2% | 5,892,310 | ||
NET ASSETS | 100.0% | $3,071,266,527 |
ADR | American Depositary Receipts |
(a) | Deemed an affiliate of the Fund in accordance with Section 2(a)(3) of the Investment Company Act of 1940. See Note 5 - Affiliated Securities. |
(b) | Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the Valuation Designee (as defined in Note 2). |
* | Non-income producing security. |
+ | All or a portion of this security is held as collateral for securities sold short |
@ | Restricted security - Investment in security not registered under the Securities Act of 1933. Sales or transfers of the investment may be restricted only to qualified buyers. |
See Notes to Financial Statements.
- 5 -
THE ALGER FUNDS II | ALGER SPECTRA FUNDSchedule of Investments January 31, 2024 (Unaudited) (Continued)
Security | Acquisition Date(s) | Acquisition Cost | Market Value | % of net assets as of 01/31/2024 |
Chime Financial, Inc.,Series G | 8/24/21 | $13,025,390 | $6,930,425 | 0.2% |
Crosslink Ventures C, LLC, Cl. A | 10/2/20 | 7,350,000 | 6,595,008 | 0.2% |
Crosslink Ventures C, LLC, Cl. B | 12/16/20 | 4,575,000 | 4,105,056 | 0.1% |
Prosetta Biosciences, Inc., Series D | 2/6/15 | 13,104,054 | — | 0.0% |
Total | $17,630,489 | 0.5% |
See Notes to Financial Statements.
- 6 -
THE ALGER FUNDS II | ALGER SPECTRA FUNDSchedule of Investments - Securities Sold Short January 31, 2024 (Unaudited)
SHARES | VALUE | |
COMMON STOCKS—(6.5)% | ||
AGRICULTURAL PRODUCTS & SERVICES—0.0% | ||
Bunge Global SA | (14,857) | $(1,308,753) |
AIR FREIGHT & LOGISTICS—(0.1)% | ||
FedEx Corp. | (6,188) | (1,493,102) |
United Parcel Service, Inc., Cl. B | (13,680) | (1,941,192) |
(3,434,294) | ||
APPAREL RETAIL—(0.2)% | ||
SPDR S&P Retail ETF | (68,823) | (4,721,258) |
APPLICATION SOFTWARE—(0.2)% | ||
Aurora Innovation, Inc., Cl. A* | (611,921) | (1,829,644) |
Bentley Systems, Inc., Cl. B | (30,964) | (1,560,586) |
PROS Holdings, Inc.* | (43,430) | (1,494,861) |
(4,885,091) | ||
AUTOMOTIVE PARTS & EQUIPMENT—(0.1)% | ||
QuantumScape Corp.* | (337,970) | (2,301,576) |
AUTOMOTIVE RETAIL—0.0% | ||
Penske Automotive Group, Inc. | (10,043) | (1,490,080) |
BROADLINE RETAIL—(0.1)% | ||
Etsy, Inc.* | (44,052) | (2,932,101) |
MINISO Group Holding, Ltd. ADR | (72,764) | (1,234,077) |
(4,166,178) | ||
BUILDING PRODUCTS—(0.2)% | ||
Carrier Global Corp. | (50,110) | (2,741,518) |
Johnson Controls International PLC | (27,506) | (1,449,291) |
Zurn Elkay Water Solutions Corp. | (99,859) | (2,960,819) |
(7,151,628) | ||
CASINOS & GAMING—(0.1)% | ||
International Game Technology PLC | (56,488) | (1,466,428) |
MGM Resorts International | (35,358) | (1,533,476) |
(2,999,904) | ||
COMMUNICATIONS EQUIPMENT—0.0% | ||
Cisco Systems, Inc. | (29,760) | (1,493,357) |
CONSUMER STAPLES MERCHANDISE RETAIL—(0.1)% | ||
Dollar Tree, Inc.* | (23,623) | (3,085,636) |
DATA PROCESSING & OUTSOURCED SERVICES—0.0% | ||
Maximus, Inc. | (18,657) | (1,513,456) |
See Notes to Financial Statements.
- 7 -
THE ALGER FUNDS II | ALGER SPECTRA FUNDSchedule of Investments - Securities Sold Short January 31, 2024 (Unaudited) (Continued)
SHARES | VALUE | |
COMMON STOCKS—(6.5)% (CONT.) | ||
DISTRIBUTORS—(0.1)% | ||
Genuine Parts Co. | (10,794) | $(1,513,643) |
LKQ Corp. | (31,848) | (1,486,346) |
(2,999,989) | ||
ELECTRICAL COMPONENTS & EQUIPMENT—(0.1)% | ||
Rockwell Automation, Inc. | (10,206) | (2,584,976) |
HEALTHCARE EQUIPMENT—(0.2)% | ||
Envista Holdings Corp.* | (176,791) | (4,154,588) |
Omnicell, Inc.* | (97,365) | (3,132,232) |
(7,286,820) | ||
HEALTHCARE SERVICES—0.0% | ||
Quest Diagnostics, Inc. | (11,625) | (1,492,999) |
HOME IMPROVEMENT RETAIL—(0.3)% | ||
Floor & Decor Holdings, Inc., Cl. A* | (52,895) | (5,319,121) |
Lowe's Cos., Inc. | (14,120) | (3,005,301) |
(8,324,422) | ||
HUMAN RESOURCE & EMPLOYMENT SERVICES—(0.2)% | ||
Paylocity Holding Corp.* | (13,805) | (2,186,850) |
Robert Half, Inc. | (40,679) | (3,235,608) |
(5,422,458) | ||
INDUSTRIAL CONGLOMERATES—(0.1)% | ||
Honeywell International, Inc. | (7,713) | (1,560,031) |
INDUSTRIAL GASES—0.0% | ||
Air Products and Chemicals, Inc. | (5,400) | (1,380,834) |
INDUSTRIAL MACHINERY & SUPPLIES & COMPONENTS—(0.1)% | ||
Lincoln Electric Holdings, Inc. | (14,095) | (3,132,191) |
INTERNET SERVICES & INFRASTRUCTURE—0.0% | ||
VeriSign, Inc.* | (7,504) | (1,492,396) |
MARKET INDICES—(3.1)% | ||
Direxion NASDAQ-100 Equal Weighted Index Shares | (70,918) | (6,039,377) |
iShares Europe ETF | (37,741) | (1,976,496) |
iShares MSCI United Kingdom ETF | (98,891) | (3,207,035) |
iShares Russell Mid-Cap Growth ETF | (123,030) | (12,777,896) |
Renaissance IPO ETF* | (44,752) | (1,523,747) |
SPDR S&P 500 ETF Trust | (106,935) | (51,636,773) |
VanEck Semiconductor ETF | (80,000) | (14,869,600) |
(92,030,924) | ||
PACKAGED FOODS & MEATS—(0.1)% | ||
Campbell Soup Co. | (66,904) | (2,985,925) |
See Notes to Financial Statements.
- 8 -
THE ALGER FUNDS II | ALGER SPECTRA FUNDSchedule of Investments - Securities Sold Short January 31, 2024 (Unaudited) (Continued)
SHARES | VALUE | |
COMMON STOCKS—(6.5)% (CONT.) | ||
PHARMACEUTICALS—(0.4)% | ||
Consumer Discretionary Select Sector SPDR Fund | (70,989) | $(12,133,440) |
PROPERTY & CASUALTY INSURANCE—(0.1)% | ||
Trupanion, Inc.* | (66,781) | (1,816,443) |
SEMICONDUCTOR MATERIALS & EQUIPMENT—(0.1)% | ||
Enphase Energy, Inc.* | (29,966) | (3,120,360) |
SOFT DRINKS & NON-ALCOHOLIC BEVERAGES—(0.2)% | ||
Keurig Dr Pepper, Inc. | (46,313) | (1,456,081) |
PepsiCo, Inc. | (17,698) | (2,982,644) |
The Coca-Cola Co. | (26,218) | (1,559,709) |
(5,998,434) | ||
STEEL—(0.1)% | ||
Steel Dynamics, Inc. | (22,313) | (2,692,956) |
SYSTEMS SOFTWARE—(0.2)% | ||
Technology Select Sector SPDR Fund | (28,896) | (5,712,161) |
TOTAL COMMON STOCKS (Proceeds $196,942,094) | $(200,718,970) | |
Total Securities Sold Short (Proceeds $196,942,094) | $(200,718,970) |
* | Non-income producing security. |
See Notes to Financial Statements.
- 9 -
THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUNDSchedule of Investments January 31, 2024 (Unaudited)
SHARES | VALUE | |||
COMMON STOCKS—88.3% | ||||
ADVERTISING—0.3% | ||||
The Trade Desk, Inc., Cl. A+,* | 9,580 | $ 655,559 | ||
AEROSPACE & DEFENSE—5.6% | ||||
AAR Corp.* | 9,677 | 588,555 | ||
Cadre Holdings, Inc. | 10,637 | 361,552 | ||
HEICO Corp.+ | 19,887 | 3,571,506 | ||
Kratos Defense & Security Solutions, Inc.+,* | 26,505 | 448,730 | ||
TransDigm Group, Inc.+ | 8,132 | 8,885,674 | ||
13,856,017 | ||||
APPAREL RETAIL—0.3% | ||||
Aritzia, Inc.* | 33,740 | 820,882 | ||
APPLICATION SOFTWARE—4.7% | ||||
AppFolio, Inc., Cl. A+,* | 3,949 | 865,858 | ||
Everbridge, Inc.* | 2,061 | 46,084 | ||
HubSpot, Inc.* | 3,736 | 2,282,696 | ||
Informatica, Inc., Cl. A* | 27,938 | 838,140 | ||
Intapp, Inc.* | 3,425 | 147,549 | ||
nCino, Inc.* | 25,043 | 788,353 | ||
Sprout Social, Inc., Cl. A* | 18,257 | 1,119,702 | ||
SPS Commerce, Inc.+,* | 11,036 | 2,028,417 | ||
Vertex, Inc., Cl. A+,* | 141,466 | 3,431,965 | ||
11,548,764 | ||||
ASSET MANAGEMENT & CUSTODY BANKS—1.5% | ||||
Hamilton Lane, Inc., Cl. A+ | 13,206 | 1,531,104 | ||
StepStone Group, Inc., Cl. A+ | 66,207 | 2,214,624 | ||
3,745,728 | ||||
BIOTECHNOLOGY—7.5% | ||||
ACADIA Pharmaceuticals, Inc.+,* | 130,575 | 3,383,198 | ||
Amgen, Inc.+ | 8,824 | 2,773,030 | ||
Autolus Therapeutics PLC ADR* | 69,091 | 415,928 | ||
Biohaven, Ltd.* | 4,655 | 207,054 | ||
BioMarin Pharmaceutical, Inc.+,* | 20,829 | 1,834,618 | ||
Cabaletta Bio, Inc.+,* | 62,963 | 1,289,482 | ||
Immunovant, Inc.* | 4,938 | 179,793 | ||
Natera, Inc.+,* | 60,999 | 4,022,274 | ||
Nuvalent, Inc., Cl. A* | 2,752 | 206,868 | ||
RAPT Therapeutics, Inc.* | 10,497 | 259,801 | ||
Regeneron Pharmaceuticals, Inc.* | 2,100 | 1,979,838 | ||
Sarepta Therapeutics, Inc.* | 1,708 | 203,235 | ||
Ultragenyx Pharmaceutical, Inc.* | 19,626 | 865,703 | ||
Vaxcyte, Inc.* | 10,749 | 767,694 | ||
18,388,516 |
See Notes to Financial Statements.
- 10 -
THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUNDSchedule of Investments January 31, 2024 (Unaudited) (Continued)
SHARES | VALUE | |||
COMMON STOCKS—88.3% (CONT.) | ||||
BROADLINE RETAIL—7.3% | ||||
Amazon.com, Inc.+,* | 63,974 | $ 9,928,765 | ||
MercadoLibre, Inc.+,* | 3,025 | 5,178,225 | ||
Ollie's Bargain Outlet Holdings, Inc.+,* | 40,814 | 2,935,751 | ||
18,042,741 | ||||
CARGO GROUND TRANSPORTATION—1.3% | ||||
Old Dominion Freight Line, Inc. | 2,250 | 879,795 | ||
RXO, Inc.* | 76,564 | 1,592,531 | ||
XPO, Inc.* | 9,097 | 777,248 | ||
3,249,574 | ||||
CASINOS & GAMING—0.4% | ||||
DraftKings, Inc., Cl. A* | 26,443 | 1,032,599 | ||
COMMUNICATIONS EQUIPMENT—0.7% | ||||
Arista Networks, Inc.+,* | 6,485 | 1,677,540 | ||
CONSTRUCTION MACHINERY & HEAVY TRANSPORTATION EQUIPMENT—0.1% | ||||
Wabtec Corp. | 2,594 | 341,293 | ||
CONSUMER FINANCE—0.2% | ||||
Upstart Holdings, Inc.+,* | 16,724 | 531,154 | ||
ELECTRICAL COMPONENTS & EQUIPMENT—2.0% | ||||
Fluence Energy, Inc.* | 33,022 | 656,147 | ||
Vertiv Holdings Co., Cl. A | 74,429 | 4,192,586 | ||
4,848,733 | ||||
ELECTRONIC EQUIPMENT & INSTRUMENTS—0.2% | ||||
Novanta, Inc.* | 3,445 | 532,425 | ||
ENVIRONMENTAL & FACILITIES SERVICES—2.9% | ||||
Casella Waste Systems, Inc., Cl. A+,* | 42,381 | 3,616,795 | ||
Montrose Environmental Group, Inc.+,* | 46,445 | 1,356,658 | ||
Waste Connections, Inc.+ | 13,693 | 2,125,975 | ||
7,099,428 | ||||
FINANCIAL EXCHANGES & DATA—0.4% | ||||
Cboe Global Markets, Inc. | 5,460 | 1,003,821 | ||
FOOTWEAR—1.0% | ||||
Deckers Outdoor Corp.* | 3,146 | 2,371,235 | ||
HEALTHCARE DISTRIBUTORS—1.6% | ||||
McKesson Corp. | 8,043 | 4,020,615 | ||
HEALTHCARE EQUIPMENT—8.3% | ||||
Glaukos Corp.+,* | 69,501 | 6,187,674 | ||
Impulse Dynamics PLC, Cl. E(a),*,@ | 1,273,271 | 2,987,232 | ||
Inogen, Inc.* | 53,887 | 383,406 | ||
Inspire Medical Systems, Inc.+,* | 13,933 | 2,938,052 | ||
Insulet Corp.+,* | 11,185 | 2,134,881 | ||
Intuitive Surgical, Inc.* | 3,610 | 1,365,374 |
See Notes to Financial Statements.
- 11 -
THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUNDSchedule of Investments January 31, 2024 (Unaudited) (Continued)
SHARES | VALUE | |||
COMMON STOCKS—88.3% (CONT.) | ||||
HEALTHCARE EQUIPMENT—8.3% (CONT.) | ||||
Nevro Corp.+,* | 115,939 | $ 1,919,950 | ||
Stryker Corp. | 5,993 | 2,010,532 | ||
Tandem Diabetes Care, Inc.* | 21,187 | 483,063 | ||
20,410,164 | ||||
HEALTHCARE SERVICES—0.7% | ||||
Agiliti, Inc.+,* | 89,126 | 631,903 | ||
NeoGenomics, Inc.* | 80,127 | 1,189,886 | ||
1,821,789 | ||||
HEALTHCARE TECHNOLOGY—0.4% | ||||
Definitive Healthcare Corp.* | 127,959 | 1,087,651 | ||
HOMEBUILDING—1.1% | ||||
D.R. Horton, Inc. | 18,502 | 2,644,121 | ||
HOMEFURNISHING RETAIL—0.4% | ||||
RH* | 4,210 | 1,067,151 | ||
HUMAN RESOURCE & EMPLOYMENT SERVICES—0.6% | ||||
Paylocity Holding Corp.+,* | 9,933 | 1,573,487 | ||
INTERACTIVE MEDIA & SERVICES—5.2% | ||||
Alphabet, Inc., Cl. A* | 37,838 | 5,301,104 | ||
Meta Platforms, Inc., Cl. A+,* | 10,208 | 3,982,549 | ||
Pinterest, Inc., Cl. A+,* | 44,750 | 1,676,783 | ||
Snap, Inc., Cl. A* | 124,290 | 1,974,968 | ||
12,935,404 | ||||
INTERNET SERVICES & INFRASTRUCTURE—0.1% | ||||
Shopify, Inc., Cl. A* | 3,443 | 275,681 | ||
IT CONSULTING & OTHER SERVICES—0.2% | ||||
Globant SA* | 1,860 | 438,607 | ||
LEISURE FACILITIES—0.2% | ||||
Planet Fitness, Inc., Cl. A+,* | 6,866 | 465,240 | ||
LEISURE PRODUCTS—0.0% | ||||
Latham Group, Inc.* | 4,938 | 12,493 | ||
MANAGED HEALTHCARE—2.1% | ||||
Progyny, Inc.+,* | 132,938 | 5,063,608 | ||
MOVIES & ENTERTAINMENT—4.0% | ||||
Netflix, Inc.+,* | 8,196 | 4,623,446 | ||
Spotify Technology SA+,* | 24,761 | 5,332,281 | ||
9,955,727 | ||||
OIL & GAS EQUIPMENT & SERVICES—0.6% | ||||
Core Laboratories, Inc.+ | 41,626 | 656,442 | ||
Dril-Quip, Inc.+,* | 38,287 | 768,420 | ||
1,424,862 |
See Notes to Financial Statements.
- 12 -
THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUNDSchedule of Investments January 31, 2024 (Unaudited) (Continued)
SHARES | VALUE | |||
COMMON STOCKS—88.3% (CONT.) | ||||
OIL & GAS EXPLORATION & PRODUCTION—1.3% | ||||
Diamondback Energy, Inc.+ | 21,194 | $ 3,258,366 | ||
PASSENGER AIRLINES—1.0% | ||||
Joby Aviation, Inc.* | 468,753 | 2,559,391 | ||
PASSENGER GROUND TRANSPORTATION—0.8% | ||||
Uber Technologies, Inc.+,* | 30,028 | 1,959,928 | ||
PERSONAL CARE PRODUCTS—0.0% | ||||
Oddity Tech, Ltd., Cl. A* | 22 | 909 | ||
PHARMACEUTICALS—1.6% | ||||
Eli Lilly & Co. | 6,240 | 4,028,606 | ||
PROPERTY & CASUALTY INSURANCE—0.4% | ||||
Palomar Holdings, Inc.* | 17,176 | 1,028,327 | ||
REAL ESTATE SERVICES—2.0% | ||||
FirstService Corp.+ | 28,583 | 4,791,368 | ||
REGIONAL BANKS—0.1% | ||||
Seacoast Banking Corp. of Florida | 10,640 | 261,318 | ||
RESTAURANTS—0.5% | ||||
Shake Shack, Inc., Cl. A* | 9,737 | 735,728 | ||
Wingstop, Inc. | 1,388 | 390,180 | ||
1,125,908 | ||||
SEMICONDUCTORS—10.7% | ||||
Advanced Micro Devices, Inc.+,* | 44,869 | 7,524,083 | ||
Impinj, Inc.* | 29,512 | 2,862,074 | ||
Marvell Technology, Inc. | 39,609 | 2,681,529 | ||
NVIDIA Corp.+ | 15,278 | 9,400,095 | ||
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 34,088 | 3,850,580 | ||
26,318,361 | ||||
SYSTEMS SOFTWARE—5.7% | ||||
Crowdstrike Holdings, Inc., Cl. A* | 11,601 | 3,393,293 | ||
Microsoft Corp.+ | 24,897 | 9,898,549 | ||
Zscaler, Inc.* | 3,624 | 854,068 | ||
14,145,910 | ||||
TRADING COMPANIES & DISTRIBUTORS—0.6% | ||||
SiteOne Landscape Supply, Inc.+,* | 7,542 | 1,165,616 | ||
Xometry, Inc., Cl. A* | 7,065 | 227,352 | ||
1,392,968 |
See Notes to Financial Statements.
- 13 -
THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUNDSchedule of Investments January 31, 2024 (Unaudited) (Continued)
SHARES | VALUE | |||
COMMON STOCKS—88.3% (CONT.) | ||||
TRANSACTION & PAYMENT PROCESSING SERVICES—1.7% | ||||
Flywire Corp.+,* | 41,100 | $ 878,307 | ||
Global Payments, Inc. | 25,023 | 3,333,814 | ||
4,212,121 | ||||
TOTAL COMMON STOCKS (Cost $185,402,413) | 218,026,090 | |||
PREFERRED STOCKS—0.0% | ||||
BIOTECHNOLOGY—0.0% | ||||
Prosetta Biosciences, Inc., Series D(a),(b),*,@ | 41,418 | — | ||
(Cost $186,381) | — | |||
REAL ESTATE INVESTMENT TRUST—0.5% | ||||
TELECOM TOWER—0.5% | ||||
Crown Castle, Inc.+ | 11,135 | 1,205,364 | ||
(Cost $1,054,311) | 1,205,364 | |||
RIGHTS—0.1% | ||||
BIOTECHNOLOGY—0.1% | ||||
Tolero CDR(a),*,@ | 126,108 | 93,320 | ||
(Cost $67,638) | 93,320 | |||
SPECIAL PURPOSE VEHICLE—0.5% | ||||
DATA PROCESSING & OUTSOURCED SERVICES—0.5% | ||||
Crosslink Ventures C, LLC, Cl. A(a),(b),*,@ | 829,984 | |||
Crosslink Ventures C, LLC, Cl. B(a),(b),*,@ | 493,504 | |||
1,323,488 | ||||
TOTAL SPECIAL PURPOSE VEHICLE (Cost $1,475,000) | 1,323,488 | |||
SHORT-TERM SECURITIES—3.2% | ||||
U.S. GOVERNMENT—3.2% | ||||
U.S. Treasury Bill, 0.00%, 2/8/24 | 8,000,000 | 7,992,051 | ||
(Cost $7,992,051) | 7,992,051 |
See Notes to Financial Statements.
- 14 -
THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUNDSchedule of Investments January 31, 2024 (Unaudited) (Continued)
SECURITY NAME/ EXPIRATION DATE/ STRIKE PRICE | NOTIONAL AMOUNT | NUMBER OF CONTRACTS | VALUE | |
PURCHASED PUT OPTIONS—0.1% | ||||
EXCHANGE-TRADED OPTIONS PURCHASED—0.1% | ||||
S&P 500 Index, 2/16/2024, 4,675.00 | $ 79,953,225 | 165 | $ 139,590 | |
TOTAL PURCHASED PUT OPTIONS (Cost $651,135) | 139,590 | |||
Total Investments (Cost $196,828,929) | 92.7% | $228,779,903 | ||
Affiliated Securities (Cost $1,661,381) | 1,323,488 | |||
Unaffiliated Securities (Cost $195,167,548) | 227,456,415 | |||
Securities Sold Short (Proceeds $78,510,492) | (28.8)% | (71,198,404) | ||
Written Options (Premiums received $(263,056)) | (0.0)% | (52,900) | ||
Swaps | 0.1% | 298,188 | ||
Other Assets in Excess of Liabilities | 36.1% | 89,062,677 | ||
NET ASSETS | 100.0% | $246,889,464 |
ADR | American Depositary Receipts |
CDR | Contingent Deferred Rights |
(a) | Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the Valuation Designee (as defined in Note 2). |
(b) | Deemed an affiliate of the Fund in accordance with Section 2(a)(3) of the Investment Company Act of 1940. See Note 5 - Affiliated Securities. |
* | Non-income producing security. |
+ | All or a portion of this security is held as collateral for securities sold short |
@ | Restricted security - Investment in security not registered under the Securities Act of 1933. Sales or transfers of the investment may be restricted only to qualified buyers. |
Security | Acquisition Date(s) | Acquisition Cost | Market Value | % of net assets as of 01/31/2024 |
Crosslink Ventures C, LLC, Cl. A | 10/2/20 | $925,000 | $829,984 | 0.3% |
Crosslink Ventures C, LLC, Cl. B | 12/2/20 | 550,000 | 493,504 | 0.2% |
Impulse Dynamics PLC, Cl. E | 2/11/22-6/2/23 | 4,201,794 | 2,987,232 | 1.2% |
Prosetta Biosciences, Inc., Series D | 2/6/15 | 186,381 | — | 0.0% |
Tolero CDR | 2/6/17 | 67,638 | 93,320 | 0.1% |
Total | $4,404,040 | 1.8% |
Over the counter - Contracts for difference outstanding as of January 31, 2024:
Contract Amount | Counterparty | Reference Company | Market Value | Unrealized Appreciation | Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
(19,474) | BNP Paribas | Carvana Co. | $(548,221 ) | $— | $(548,221 ) | $(548,221 ) |
(657,013) | BNP Paribas | Ses Ai Corp. | 846,409 | 846,409 | — | 846,409 |
Total | $298,188 | $846,409 | $(548,221 ) | $298,188 |
See Notes to Financial Statements.
- 15 -
THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUNDSchedule of Investments January 31, 2024 (Unaudited) (Continued)
SECURITY NAME/ EXPIRATION DATE/ STRIKE PRICE | NOTIONAL AMOUNT | NUMBER OF CONTRACTS | VALUE | |
PUT OPTIONS WRITTEN—0.0% | ||||
EXCHANGE-TRADED OPTIONS WRITTEN—0.0% | ||||
S&P 500 Index, 2/16/2024,4,400.00 | $(111,449,950) | 230 | $ (52,900) | |
(Premiums received $(263,056)) | $(52,900) |
See Notes to Financial Statements.
- 16 -
THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUNDSchedule of Investments - Securities Sold Short January 31, 2024 (Unaudited)
SHARES | VALUE | |
COMMON STOCKS—(28.7)% | ||
AEROSPACE & DEFENSE—(0.8)% | ||
Archer Aviation, Inc., Cl. A* | (48,735) | $(235,390) |
The Boeing Co.* | (7,724) | (1,630,073) |
(1,865,463) | ||
AIR FREIGHT & LOGISTICS—(0.5)% | ||
United Parcel Service, Inc., Cl. B | (8,963) | (1,271,850) |
APPAREL RETAIL—(0.6)% | ||
SPDR S&P Retail ETF | (23,015) | (1,578,829) |
APPLICATION SOFTWARE—(1.6)% | ||
Aurora Innovation, Inc., Cl. A* | (785,955) | (2,350,005) |
Salesforce, Inc.* | (4,913) | (1,380,995) |
(3,731,000) | ||
AUTOMOBILE MANUFACTURERS—(0.5)% | ||
Fisker, Inc.* | (55,316) | (44,386) |
Lucid Group, Inc.* | (354,795) | (1,199,207) |
(1,243,593) | ||
AUTOMOTIVE PARTS & EQUIPMENT—(0.6)% | ||
LCI Industries | (600) | (66,768) |
QuantumScape Corp.* | (225,403) | (1,534,994) |
(1,601,762) | ||
BIOTECHNOLOGY—(0.5)% | ||
Twist Bioscience Corp.* | (35,107) | (1,137,467) |
BROADLINE RETAIL—(0.6)% | ||
Etsy, Inc.* | (12,807) | (852,434) |
Savers Value Village, Inc.* | (44,158) | (825,313) |
(1,677,747) | ||
BUILDING PRODUCTS—(1.1)% | ||
A.O. Smith Corp. | (10,840) | (841,292) |
Carrier Global Corp. | (15,892) | (869,451) |
Zurn Elkay Water Solutions Corp. | (29,683) | (880,101) |
(2,590,844) | ||
COMMODITY CHEMICALS—(0.4)% | ||
PureCycle Technologies, Inc.* | (280,818) | (1,100,807) |
CONSTRUCTION & ENGINEERING—(0.3)% | ||
Ameresco, Inc., Cl.A* | (42,467) | (867,601) |
CONSUMER STAPLES MERCHANDISE RETAIL—(0.6)% | ||
Dollar General Corp. | (5,128) | (677,255) |
Dollar Tree, Inc.* | (5,171) | (675,436) |
(1,352,691) |
See Notes to Financial Statements.
- 17 -
THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUNDSchedule of Investments - Securities Sold Short January 31, 2024 (Unaudited) (Continued)
SHARES | VALUE | |
COMMON STOCKS—(28.7)% (CONT.) | ||
EDUCATION SERVICES—(0.4)% | ||
Bright Horizons Family Solutions, Inc.* | (10,127) | $(994,978) |
ELECTRICAL COMPONENTS & EQUIPMENT—(0.5)% | ||
Freyr Battery, Inc.* | (246,694) | (333,037) |
Rockwell Automation, Inc. | (3,455) | (875,082) |
(1,208,119) | ||
ELECTRONIC EQUIPMENT & INSTRUMENTS—(0.2)% | ||
SmartRent, Inc.* | (137,158) | (404,616) |
ELECTRONIC MANUFACTURING SERVICES—(1.2)% | ||
IPG Photonics Corp.* | (30,488) | (2,984,470) |
HEALTHCARE EQUIPMENT—(1.0)% | ||
Envista Holdings Corp.* | (40,881) | (960,703) |
Globus Medical, Inc., Cl. A* | (7,239) | (382,147) |
Omnicell, Inc.* | (27,804) | (894,455) |
(2,237,305) | ||
HEALTHCARE FACILITIES—(0.2)% | ||
US Physical Therapy, Inc. | (5,331) | (491,838) |
HEALTHCARE SERVICES—(0.2)% | ||
23andMe Holding Co., Cl. A* | (616,679) | (450,854) |
DocGo, Inc.* | (4,671) | (17,283) |
(468,137) | ||
HEALTHCARE SUPPLIES—(0.7)% | ||
STAAR Surgical Co.* | (63,355) | (1,774,574) |
HEALTHCARE TECHNOLOGY—(0.6)% | ||
Simulations Plus, Inc. | (37,906) | (1,436,637) |
HOME IMPROVEMENT RETAIL—(0.5)% | ||
Floor & Decor Holdings, Inc., Cl.A* | (12,669) | (1,273,995) |
HOTELS RESORTS & CRUISE LINES—(0.3)% | ||
Soho House & Co., Inc.* | (126,173) | (775,964) |
INDUSTRIAL MACHINERY & SUPPLIES & COMPONENTS—(0.6)% | ||
Desktop Metal, Inc., Cl. A* | (96,952) | (62,893) |
Lincoln Electric Holdings, Inc. | (5,993) | (1,331,764) |
Velo3D, Inc.* | (435,709) | (136,595) |
(1,531,252) | ||
INTEGRATED OIL & GAS—(0.3)% | ||
Occidental Petroleum Corp. | (11,820) | (680,477) |
See Notes to Financial Statements.
- 18 -
THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUNDSchedule of Investments - Securities Sold Short January 31, 2024 (Unaudited) (Continued)
SHARES | VALUE | |
COMMON STOCKS—(28.7)% (CONT.) | ||
INTERNET SERVICES & INFRASTRUCTURE—(0.5)% | ||
Okta, Inc.* | (9,677) | $(799,804) |
Snowflake, Inc., Cl. A* | (1,978) | (386,976) |
(1,186,780) | ||
IT CONSULTING & OTHER SERVICES—(0.6)% | ||
International Business Machines Corp. | (7,726) | (1,418,957) |
MANAGED HEALTHCARE—(0.9)% | ||
Humana, Inc. | (1,869) | (706,594) |
UnitedHealth Group, Inc. | (2,777) | (1,421,102) |
(2,127,696) | ||
MISCELLANEOUS—(0.4)% | ||
KraneShares CSI China Internet ETF | (21,421) | (499,966) |
Xtrackers Harvest CSI 300 China A-Shares ETF | (24,601) | (544,912) |
(1,044,878) | ||
MOVIES & ENTERTAINMENT—(1.1)% | ||
Roku, Inc.* | (14,912) | (1,313,151) |
Sphere Entertainment Co.* | (9,494) | (335,898) |
Vivid Seats, Inc., Cl. A* | (13,669) | (78,460) |
Warner Bros Discovery, Inc.* | (111,624) | (1,118,472) |
(2,845,981) | ||
PACKAGED FOODS & MEATS—(0.5)% | ||
The Kraft Heinz Co. | (36,258) | (1,346,260) |
PERSONAL CARE PRODUCTS—(0.1)% | ||
Nu Skin Enterprises, Inc., Cl. A | (15,176) | (281,667) |
PHARMACEUTICALS—(1.0)% | ||
Bristol-Myers Squibb Co. | (26,785) | (1,308,983) |
Zoetis, Inc. | (6,776) | (1,272,601) |
(2,581,584) | ||
PROPERTY & CASUALTY INSURANCE—(0.4)% | ||
Lemonade, Inc.* | (57,406) | (908,163) |
REAL ESTATE OPERATING COMPANIES—(0.4)% | ||
Seritage Growth Properties, Cl. A* | (114,484) | (1,047,529) |
REAL ESTATE SERVICES—(0.2)% | ||
Opendoor Technologies, Inc.* | (172,569) | (590,186) |
REGIONAL BANKS—(0.7)% | ||
Bank OZK | (22,480) | (1,014,073) |
Stellar Bancorp, Inc. | (30,519) | (763,891) |
(1,777,964) |
See Notes to Financial Statements.
- 19 -
THE ALGER FUNDS II | ALGER DYNAMIC OPPORTUNITIES FUNDSchedule of Investments - Securities Sold Short January 31, 2024 (Unaudited) (Continued)
SHARES | VALUE | |
COMMON STOCKS—(28.7)% (CONT.) | ||
RESEARCH & CONSULTING SERVICES—(0.3)% | ||
Franklin Covey Co.* | (19,984) | $(808,153) |
RESTAURANTS—(0.8)% | ||
Sweetgreen, Inc., Cl. A* | (85,455) | (912,659) |
Yum! Brands, Inc. | (7,793) | (1,009,116) |
(1,921,775) | ||
SEMICONDUCTOR MATERIALS & EQUIPMENT—(0.4)% | ||
Enphase Energy, Inc.* | (9,281) | (966,430) |
SEMICONDUCTORS—(2.0)% | ||
indie Semiconductor, Inc., Cl. A* | (274,359) | (1,665,359) |
Intel Corp. | (31,373) | (1,351,549) |
Texas Instruments, Inc. | (12,545) | (2,008,705) |
(5,025,613) | ||
SOFT DRINKS & NON-ALCOHOLIC BEVERAGES—(1.1)% | ||
PepsiCo, Inc. | (15,778) | (2,659,066) |
SPECIALIZED CONSUMER SERVICES—(0.7)% | ||
Service Corp. International | (24,148) | (1,620,814) |
SYSTEMS SOFTWARE—(0.3)% | ||
Fortinet, Inc.* | (10,697) | (689,850) |
TRANSACTION & PAYMENT PROCESSING SERVICES—(1.5)% | ||
Adyen NV* | (2,876) | (3,607,043) |
TOTAL COMMON STOCKS (Proceeds $78,024,177) | $(70,738,405) | |
REAL ESTATE INVESTMENT TRUST—(0.1)% | ||
DIVERSIFIED—(0.1)% | ||
Empire State Realty Trust, Inc. | (39,179) | (372,984) |
OFFICE—0.0% | ||
Paramount Group, Inc. | (18,319) | (87,015) |
TOTAL REAL ESTATE INVESTMENT TRUST (Proceeds $486,315) | $(459,999) | |
Total Securities Sold Short (Proceeds $78,510,492) | $(71,198,404) |
* | Non-income producing security. |
See Notes to Financial Statements.
- 20 -
THE ALGER FUNDS II | ALGER EMERGING MARKETS FUNDSchedule of Investments January 31, 2024 (Unaudited)
SHARES | VALUE | |||
COMMON STOCKS—97.5% | ||||
ARGENTINA—1.8% | ||||
IT CONSULTING & OTHER SERVICES—1.8% | ||||
Globant SA* | 1,575 | $ 371,401 | ||
(Cost $304,326) | ||||
BRAZIL—20.4% | ||||
BROADLINE RETAIL—4.0% | ||||
MercadoLibre, Inc.* | 470 | 804,551 | ||
DIVERSIFIED BANKS—4.8% | ||||
NU Holdings, Ltd., Cl. A* | 113,500 | 977,235 | ||
DIVERSIFIED CAPITAL MARKETS—3.1% | ||||
Banco BTG Pactual SA | 87,000 | 633,570 | ||
FOOTWEAR—2.8% | ||||
Arezzo Industria e Comercio SA | 45,300 | 573,748 | ||
HEALTHCARE FACILITIES—2.1% | ||||
Rede D'Or Sao Luiz SA | 77,000 | 419,782 | ||
OIL & GAS EXPLORATION & PRODUCTION—2.0% | ||||
PRIO SA | 46,000 | 409,268 | ||
PASSENGER GROUND TRANSPORTATION—1.6% | ||||
Localiza Rent a Car SA | 29,000 | 318,483 | ||
TOTAL BRAZIL (Cost $3,339,678) | 4,136,637 | |||
CHINA—16.8% | ||||
APPAREL ACCESSORIES & LUXURY GOODS—2.0% | ||||
ANTA Sports Products, Ltd. | 47,400 | 400,078 | ||
AUTOMOBILE MANUFACTURERS—1.8% | ||||
BYD Co., Ltd., Cl. H | 16,522 | 369,930 | ||
BROADLINE RETAIL—3.1% | ||||
PDD Holdings, Inc. ADR* | 5,000 | 634,350 | ||
DISTILLERS & VINTNERS—1.7% | ||||
Kweichow Moutai Co., Ltd., Cl. A | 1,500 | 335,743 | ||
EDUCATION SERVICES—2.9% | ||||
New Oriental Education & Technology Group, Inc. ADR* | 7,700 | 590,282 | ||
HOTELS RESORTS & CRUISE LINES—3.3% | ||||
Trip.com Group, Ltd. ADR* | 18,200 | 665,392 | ||
PERSONAL CARE PRODUCTS—2.0% | ||||
Proya Cosmetics Co., Ltd., Cl. A | 35,942 | 412,622 | ||
TOTAL CHINA (Cost $3,271,476) | 3,408,397 | |||
GREECE—7.2% | ||||
INDUSTRIAL CONGLOMERATES—3.2% | ||||
Mytilineos SA | 15,700 | 644,633 |
See Notes to Financial Statements.
- 21 -
THE ALGER FUNDS II | ALGER EMERGING MARKETS FUNDSchedule of Investments January 31, 2024 (Unaudited) (Continued)
SHARES | VALUE | |||
COMMON STOCKS—97.5% (CONT.) | ||||
GREECE—7.2% (CONT.) | ||||
OTHER SPECIALTY RETAIL—4.0% | ||||
JUMBO SA | 29,200 | $ 820,468 | ||
TOTAL GREECE (Cost $881,399) | 1,465,101 | |||
INDIA—19.2% | ||||
DIVERSIFIED BANKS—3.0% | ||||
HDFC Bank, Ltd. | 34,000 | 597,920 | ||
ELECTRICAL COMPONENTS & EQUIPMENT—1.9% | ||||
CG Power & Industrial Solutions, Ltd. | 69,000 | 389,269 | ||
HOTELS RESORTS & CRUISE LINES—5.7% | ||||
Lemon Tree Hotels, Ltd.* | 242,000 | 407,966 | ||
MakeMyTrip, Ltd.* | 13,600 | 753,304 | ||
1,161,270 | ||||
LIFE SCIENCES TOOLS & SERVICES—2.2% | ||||
Syngene International, Ltd. | 50,000 | 452,038 | ||
MOTORCYCLE MANUFACTURERS—2.5% | ||||
Eicher Motors, Ltd. | 11,000 | 509,203 | ||
PACKAGED FOODS & MEATS—3.9% | ||||
Patanjali Foods, Ltd. | 41,478 | 793,416 | ||
TOTAL INDIA (Cost $3,249,067) | 3,903,116 | |||
MEXICO—1.9% | ||||
CARGO GROUND TRANSPORTATION—1.9% | ||||
Grupo Traxion SAB de CV* | 210,000 | 384,458 | ||
(Cost $370,752) | ||||
POLAND—1.5% | ||||
FOOD RETAIL—1.5% | ||||
Dino Polska SA* | 2,900 | 312,990 | ||
(Cost $251,298) | ||||
SAUDI ARABIA—3.1% | ||||
IT CONSULTING & OTHER SERVICES—1.6% | ||||
Elm Co. | 1,300 | 312,057 | ||
LEISURE FACILITIES—1.5% | ||||
Leejam Sports Co. JSC | 6,000 | 308,914 | ||
TOTAL SAUDI ARABIA (Cost $362,720) | 620,971 | |||
SOUTH KOREA—9.4% | ||||
ELECTRONIC EQUIPMENT & INSTRUMENTS—2.4% | ||||
Park Systems Corp. | 3,700 | 475,761 |
See Notes to Financial Statements.
- 22 -
THE ALGER FUNDS II | ALGER EMERGING MARKETS FUNDSchedule of Investments January 31, 2024 (Unaudited) (Continued)
SHARES | VALUE | |||
COMMON STOCKS—97.5% (CONT.) | ||||
SOUTH KOREA—9.4% (CONT.) | ||||
SEMICONDUCTOR EQUIPMENT—1.6% | ||||
HPSP Co., Ltd. | 9,700 | $ 325,143 | ||
SEMICONDUCTOR MATERIALS & EQUIPMENT—2.5% | ||||
Eo Technics Co., Ltd.* | 4,000 | 511,716 | ||
SEMICONDUCTORS—2.9% | ||||
LEENO Industrial, Inc.* | 3,989 | 593,499 | ||
TOTAL SOUTH KOREA (Cost $1,478,663) | 1,906,119 | |||
TAIWAN—11.4% | ||||
SEMICONDUCTORS—11.4% | ||||
ASPEED Technology, Inc. | 4,000 | 392,879 | ||
Taiwan Semiconductor Manufacturing Co., Ltd. | 57,500 | 1,151,063 | ||
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 6,800 | 768,128 | ||
TOTAL TAIWAN (Cost $2,073,518) | 2,312,070 | |||
TURKEY—3.9% | ||||
APPAREL ACCESSORIES & LUXURY GOODS—2.3% | ||||
Mavi Giyim Sanayi Ve Ticaret AS, Cl. B(a) | 101,000 | 474,628 | ||
FOOD RETAIL—1.6% | ||||
BIM Birlesik Magazalar AS | 25,000 | 313,499 | ||
TOTAL TURKEY (Cost $514,416) | 788,127 | |||
UNITED ARAB EMIRATES—0.9% | ||||
OIL & GAS DRILLING—0.9% | ||||
ADNOC Drilling Co. PJSC | 182,000 | 181,854 | ||
(Cost $191,596) | ||||
TOTAL COMMON STOCKS (Cost $16,288,909) | 19,791,241 |
See Notes to Financial Statements.
- 23 -
THE ALGER FUNDS II | ALGER EMERGING MARKETS FUNDSchedule of Investments January 31, 2024 (Unaudited) (Continued)
SHARES | VALUE | |||
RIGHTS—0.0% | ||||
BRAZIL—0.0% | ||||
PASSENGER GROUND TRANSPORTATION—0.0% | ||||
Localiza Rent a Car SA* | 104 | $ 210 | ||
(Cost $0) | ||||
Total Investments (Cost $16,288,909) | 97.5% | $19,791,451 | ||
Unaffiliated Securities (Cost $16,288,909) | 19,791,451 | |||
Other Assets in Excess of Liabilities | 2.5% | 502,700 | ||
NET ASSETS | 100.0% | $20,294,151 |
ADR | American Depositary Receipts |
(a) | Pursuant to Securities and Exchange Commission Rule 144A, these securities may be sold prior to their maturity only to qualified institutional buyers. These securities represent 2.3% of the net assets of the Fund. |
* | Non-income producing security. |
See Notes to Financial Statements.
- 24 -
THE ALGER FUNDS II | ALGER RESPONSIBLE INVESTING FUNDSchedule of Investments January 31, 2024 (Unaudited)
SHARES | VALUE | |||
COMMON STOCKS—95.5% | ||||
AGRICULTURAL & FARM MACHINERY—0.6% | ||||
Deere & Co. | 1,358 | $ 534,482 | ||
APPAREL ACCESSORIES & LUXURY GOODS—0.5% | ||||
Lululemon Athletica, Inc.* | 901 | 408,892 | ||
APPLICATION SOFTWARE—6.8% | ||||
Adobe, Inc.* | 5,041 | 3,114,229 | ||
Autodesk, Inc.* | 3,176 | 806,101 | ||
Intuit, Inc. | 1,473 | 929,949 | ||
Salesforce, Inc.* | 4,061 | 1,141,506 | ||
5,991,785 | ||||
AUTOMOBILE MANUFACTURERS—1.1% | ||||
Tesla, Inc.* | 5,019 | 940,008 | ||
AUTOMOTIVE PARTS & EQUIPMENT—0.9% | ||||
Aptiv PLC* | 5,666 | 460,816 | ||
Mobileye Global, Inc., Cl. A* | 14,573 | 376,858 | ||
837,674 | ||||
BIOTECHNOLOGY—3.3% | ||||
AbbVie, Inc. | 3,323 | 546,301 | ||
Amgen, Inc. | 2,109 | 662,774 | ||
Vaxcyte, Inc.* | 4,005 | 286,037 | ||
Vertex Pharmaceuticals, Inc.* | 3,183 | 1,379,449 | ||
2,874,561 | ||||
BROADLINE RETAIL—7.7% | ||||
Amazon.com, Inc.* | 35,468 | 5,504,634 | ||
MercadoLibre, Inc.* | 736 | 1,259,892 | ||
6,764,526 | ||||
BUILDING PRODUCTS—0.5% | ||||
Allegion PLC | 3,268 | 404,873 | ||
CARGO GROUND TRANSPORTATION—0.3% | ||||
Old Dominion Freight Line, Inc. | 761 | 297,566 | ||
ELECTRIC UTILITIES—0.5% | ||||
NextEra Energy, Inc. | 7,782 | 456,259 | ||
ELECTRICAL COMPONENTS & EQUIPMENT—2.0% | ||||
Eaton Corp. PLC | 2,199 | 541,130 | ||
NEXTracker, Inc., Cl. A* | 7,392 | 334,636 | ||
Vertiv Holdings Co., Cl. A | 16,488 | 928,769 | ||
1,804,535 | ||||
ELECTRONIC EQUIPMENT & INSTRUMENTS—0.3% | ||||
Trimble, Inc.* | 5,902 | 300,176 | ||
ELECTRONIC MANUFACTURING SERVICES—1.1% | ||||
Flex, Ltd.* | 42,440 | 1,007,526 |
See Notes to Financial Statements.
- 25 -
THE ALGER FUNDS II | ALGER RESPONSIBLE INVESTING FUNDSchedule of Investments January 31, 2024 (Unaudited) (Continued)
SHARES | VALUE | |||
COMMON STOCKS—95.5% (CONT.) | ||||
ENVIRONMENTAL & FACILITIES SERVICES—1.1% | ||||
Tetra Tech, Inc. | 2,866 | $ 453,344 | ||
Veralto Corp. | 6,604 | 506,461 | ||
959,805 | ||||
FINANCIAL EXCHANGES & DATA—1.8% | ||||
S&P Global, Inc. | 3,601 | 1,614,508 | ||
FOOTWEAR—1.0% | ||||
NIKE, Inc., Cl. B | 6,361 | 645,832 | ||
On Holding AG, Cl. A* | 8,450 | 224,432 | ||
870,264 | ||||
HEALTHCARE DISTRIBUTORS—1.2% | ||||
McKesson Corp. | 2,176 | 1,087,761 | ||
HEALTHCARE EQUIPMENT—1.1% | ||||
Dexcom, Inc.* | 4,026 | 488,555 | ||
Intuitive Surgical, Inc.* | 1,165 | 440,626 | ||
929,181 | ||||
HOME IMPROVEMENT RETAIL—1.8% | ||||
The Home Depot, Inc. | 4,403 | 1,554,083 | ||
HOUSEHOLD PRODUCTS—1.1% | ||||
The Procter & Gamble Co. | 6,221 | 977,568 | ||
HUMAN RESOURCE & EMPLOYMENT SERVICES—0.2% | ||||
Paycom Software, Inc. | 1,172 | 222,961 | ||
INDUSTRIAL CONGLOMERATES—0.7% | ||||
Honeywell International, Inc. | 3,108 | 628,624 | ||
INDUSTRIAL GASES—1.0% | ||||
Air Products & Chemicals, Inc. | 3,376 | 863,277 | ||
INDUSTRIAL MACHINERY & SUPPLIES & COMPONENTS—0.6% | ||||
Xylem, Inc. | 4,408 | 495,635 | ||
INTERACTIVE MEDIA & SERVICES—6.2% | ||||
Alphabet, Inc., Cl. A* | 16,160 | 2,264,016 | ||
Alphabet, Inc., Cl. C* | 13,940 | 1,976,692 | ||
Pinterest, Inc., Cl. A* | 32,974 | 1,235,536 | ||
5,476,244 | ||||
INVESTMENT BANKING & BROKERAGE—1.2% | ||||
Morgan Stanley | 11,732 | 1,023,500 | ||
IT CONSULTING & OTHER SERVICES—0.8% | ||||
Accenture PLC, Cl. A | 1,947 | 708,474 | ||
LEISURE FACILITIES—0.5% | ||||
Vail Resorts, Inc. | 1,843 | 409,146 |
See Notes to Financial Statements.
- 26 -
THE ALGER FUNDS II | ALGER RESPONSIBLE INVESTING FUNDSchedule of Investments January 31, 2024 (Unaudited) (Continued)
SHARES | VALUE | |||
COMMON STOCKS—95.5% (CONT.) | ||||
LIFE SCIENCES TOOLS & SERVICES—2.0% | ||||
Agilent Technologies, Inc. | 4,610 | $ 599,761 | ||
Danaher Corp. | 4,742 | 1,137,653 | ||
1,737,414 | ||||
MANAGED HEALTHCARE—1.9% | ||||
Humana, Inc. | 1,759 | 665,007 | ||
UnitedHealth Group, Inc. | 2,043 | 1,045,485 | ||
1,710,492 | ||||
METAL, GLASS & PLASTIC CONTAINERS—0.6% | ||||
Ball Corp. | 9,873 | 547,458 | ||
MOVIES & ENTERTAINMENT—0.5% | ||||
Spotify Technology SA* | 2,240 | 482,384 | ||
PHARMACEUTICALS—2.1% | ||||
Merck & Co., Inc. | 8,311 | 1,003,803 | ||
Zoetis, Inc. | 4,472 | 839,886 | ||
1,843,689 | ||||
RAIL TRANSPORTATION—0.8% | ||||
Union Pacific Corp. | 2,735 | 667,149 | ||
RESTAURANTS—0.8% | ||||
Starbucks Corp. | 7,708 | 717,075 | ||
SEMICONDUCTOR MATERIALS & EQUIPMENT—4.2% | ||||
ASML Holding NV | 1,874 | 1,630,042 | ||
Lam Research Corp. | 2,569 | 2,119,862 | ||
3,749,904 | ||||
SEMICONDUCTORS—10.2% | ||||
Advanced Micro Devices, Inc.* | 3,702 | 620,788 | ||
First Solar, Inc.* | 2,848 | 416,662 | ||
Marvell Technology, Inc. | 13,438 | 909,753 | ||
NVIDIA Corp. | 10,375 | 6,383,426 | ||
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 6,081 | 686,910 | ||
9,017,539 | ||||
SOFT DRINKS & NON-ALCOHOLIC BEVERAGES—1.1% | ||||
PepsiCo, Inc. | 5,552 | 935,679 | ||
SYSTEMS SOFTWARE—13.9% | ||||
Microsoft Corp. | 29,986 | 11,921,834 | ||
Oracle Corp. | 3,338 | 372,854 | ||
12,294,688 | ||||
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—6.8% | ||||
Apple, Inc. | 32,436 | 5,981,198 |
See Notes to Financial Statements.
- 27 -
THE ALGER FUNDS II | ALGER RESPONSIBLE INVESTING FUNDSchedule of Investments January 31, 2024 (Unaudited) (Continued)
SHARES | VALUE | |||
COMMON STOCKS—95.5% (CONT.) | ||||
TRANSACTION & PAYMENT PROCESSING SERVICES—4.7% | ||||
Visa, Inc., Cl. A | 15,054 | $ 4,113,656 | ||
TOTAL COMMON STOCKS (Cost $30,225,875) | 84,242,219 | |||
REAL ESTATE INVESTMENT TRUST—2.3% | ||||
DATA CENTER—1.3% | ||||
Equinix, Inc. | 1,382 | 1,146,742 | ||
INDUSTRIAL—1.0% | ||||
Prologis, Inc. | 7,288 | 923,317 | ||
TOTAL REAL ESTATE INVESTMENT TRUST (Cost $1,204,702) | 2,070,059 | |||
Total Investments (Cost $31,430,577) | 97.8% | $86,312,278 | ||
Unaffiliated Securities (Cost $31,430,577) | 86,312,278 | |||
Other Assets in Excess of Liabilities | 2.2% | 1,921,123 | ||
NET ASSETS | 100.0% | $88,233,401 |
ADR | American Depositary Receipts |
* | Non-income producing security. |
See Notes to Financial Statements.
- 28 -
THE ALGER FUNDS IINOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1 — General:
The Alger Funds II (the “Trust”) is an open-end registered investment company organized as a business trust under the laws of the Commonwealth of Massachusetts. The Trust qualifies as an investment company as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 946 – Financial Services – Investment Companies. The Trust operates as a series company currently offering an unlimited number of shares of beneficial interest in four series – Alger Spectra Fund, Alger Dynamic Opportunities Fund, Alger Emerging Markets Fund and Alger Responsible Investing Fund (collectively, the “Funds” or individually, each a “Fund”). The Funds normally invest primarily in equity securities and each has an investment objective of long-term capital appreciation.
Each Fund offers one or more of the following share classes: Class A, C, I, Y and Z. Class A shares are generally subject to an initial sales charge while Class C shares are generally subject to a deferred sales charge. Class C shares will automatically convert to Class A shares on the fifth business day of the month following the eighth anniversary of the purchase date of a shareholder’s Class C shares, without the imposition of any sales load, fee or other charge. Class C shares held at certain dealers may not convert to Class A shares or may be converted on a different schedule. At conversion, a proportionate amount of shares representing reinvested dividends and distributions will also be converted into Class A shares. Effective August 27, 2019, Class C shares were closed to direct shareholders and are only available for purchase through certain financial intermediaries and group retirement plan recordkeeping platforms. Class I shares, Class Z shares and Class Y shares are sold to institutional investors without an initial or deferred sales charge and Class Z shares and Class Y shares are generally subject to a minimum initial investment of $500,000. Each class has identical rights to assets and earnings, except that each share class bears the pro rata allocation of the Fund’s expenses other than a class expense (not including advisory or custodial fees or other expenses related to the management of the Fund’s assets).
On May 23, 2023, the Board of Trustees of the Trust (the "Board") approved the transition of the Funds' custodian and administrator from Brown Brothers Harriman & Company (the "Custodian") to The Bank of New York Mellon. This change became effective January 29, 2024.
NOTE 2 — Significant Accounting Policies:
(a) Investment Valuation: The Funds value their financial instruments at fair value using independent dealers or pricing services under policies approved by the Board. Investments held by the Funds are valued on each day the New York Stock Exchange (the “NYSE”) is open, as of the close of the NYSE (normally 4:00 p.m. Eastern Time).
- 29 -
THE ALGER FUNDS IINOTES TO FINANCIAL STATEMENTS (Continued)
The Board has designated, pursuant to Rule 2a-5 under the Investment Company Act of 1940, as amended (the “1940 Act”), the Funds' investment adviser, Fred Alger Management, LLC (“Alger Management” or the “Investment Manager”) as its valuation designee (the “Valuation Designee”) to make fair value determinations subject to the Board’s review and oversight. The Valuation Designee has established a Valuation Committee (“Committee”) comprised of representatives of the Investment Manager and officers of the Funds to assist in performing the duties and responsibilities of the Valuation Designee.
The Valuation Designee has established valuation processes including but not limited to: (i) making fair value determinations when market quotations for financial instruments are not readily available in accordance with valuation policies and procedures adopted by the Board; (ii) assessing and managing material risks associated with fair valuation determinations; (iii) selecting, applying and testing fair valuation methodologies; and (iv) overseeing and evaluating pricing services used by the Funds. The Valuation Designee regularly reports its fair valuation determinations and related valuation information to the Board. The Committee generally meets quarterly and on an as-needed basis to review and evaluate the effectiveness of the valuation policies and procedures in accordance with the requirements of Rule 2a-5.
Investments in short-term securities held by the Funds having a remaining maturity of sixty days or less are valued at amortized cost which approximates market value. Investments in other open-end investment companies registered under the 1940 Act are valued at such investment companies' net asset value per share.
Equity securities, including traded rights, warrants and option contracts for which valuation information is readily available, are valued at the last quoted sales price or official closing price on the primary market or exchange on which they are traded as reported by an independent pricing service. In the absence of quoted sales, such securities are generally valued at the bid price or, in the absence of a recent bid price, the equivalent as obtained from one or more of the major market makers for the securities to be valued.
Debt securities generally trade in the over-the-counter market. Debt securities with remaining maturities of more than sixty days at the time of acquisition are valued on the basis of the last available bid prices or current market quotations provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes,market transactions in comparable investments, various relationships observed in the market between investments and calculated yield measures based on valuation technology commonly employed in the market for such investments. Asset-backed and mortgage-backed securities are valued by independent pricing services using models that consider estimated cash flows of
- 30 -
THE ALGER FUNDS IINOTES TO FINANCIAL STATEMENTS (Continued)
each tranche of the security, establish a benchmark yield and develop an estimated tranche-specific spread to the benchmark yield based on the unique attributes of the tranche. Debt securities with a remaining maturity of sixty days or less are valued at amortized cost which approximates market value.
Contracts for difference ("CFDs") are privately negotiated in the over-the-counter market ("OTC CFDs"). OTC CFDs are valued at the last reported sale or official closing price on the primary market or exchange of the underlying asset or liability. In the absence of quoted sales, such securities are generally valued at the bid price, or, in the absence of a recent bid price, the equivalent as obtained from one or more of the major market makers for the securities to be valued.
Securities in which the Funds invest may be traded in foreign markets that close before the close of the NYSE. Developments that occur between the close of the foreign markets and the close of the NYSE may result in adjustments to the closing foreign prices to reflect what the Valuation Designee, through its Committee, believes to be the fair value of these securities as of the close of the NYSE. The Funds may also fair value securities in other situations, for example, when a particular foreign market is closed but the NYSE is open.
FASB Accounting Standards Codification 820 – Fair Value Measurements and Disclosures (“ASC 820”) defines fair value as the price that the Funds would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. ASC 820 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability and may be observable or unobservable. Observable inputs are based on market data obtained from sources independent of the Funds. Unobservable inputs are inputs that reflect the Funds' own assumptions based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
• Level 1 – quoted prices in active markets for identical investments
• Level 2 – significant other observable inputs (including quoted prices for similar investments, amortized cost, interest rates, prepayment speeds, credit risk, etc.)
• Level 3 – significant unobservable inputs (including the Funds' own assumptions in determining the fair value of investments)
The Funds' valuation techniques are generally consistent with either the market or the income approach to fair value. The market approach considers prices and other relevant information generated by market transactions involving identical or comparable assets to measure fair value. The income approach converts future
- 31 -
THE ALGER FUNDS IINOTES TO FINANCIAL STATEMENTS (Continued)
amounts to a current, or discounted, single amount. These fair value measurements are determined on the basis of the value indicated by current market expectations about such future events. Inputs for Level 1 include exchange-listed prices and broker quotes in an active market. Inputs for Level 2 include the last trade price in the case of a halted security, an exchange-listed price which has been adjusted for fair value factors, and prices of closely related securities. Additional Level 2 inputs include an evaluated price which is based upon a compilation of observable market information such as spreads for fixed income and preferred securities. Inputs for Level 3 include, but are not limited to, revenue multiples, earnings before interest, taxes, depreciation and amortization (“EBITDA”) multiples, discount rates, time to exit and the probabilities of success of certain outcomes. Such unobservable market information may be obtained from a company’s financial statements and from industry studies, market data, and market indicators such as benchmarks and indexes. Because of the inherent uncertainty and often limited markets for restricted securities, the valuations assigned to such securities by the Funds may significantly differ from the valuations that would have been assigned by the Funds had there been an active market for such securities.
NOTE 3 — Fair Value Measurements:
The following is a summary of the inputs used as of January 31, 2024 in valuing the Funds' investments carried at fair value on a recurring basis. Based upon the nature, characteristics, and risks associated with their investments, the Funds have determined that presenting them by security type and sector is appropriate.
Alger Spectra Fund | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 |
COMMON STOCKS | ||||
Communication Services | $445,393,096 | $445,393,096 | $— | $— |
Consumer Discretionary | 426,216,402 | 410,510,823 | 15,705,579 | — |
Energy | 64,012,537 | 64,012,537 | — | — |
Financials | 158,036,657 | 158,036,657 | — | — |
Health Care | 397,721,975 | 397,721,975 | — | — |
Industrials | 314,870,236 | 314,870,236 | — | — |
Information Technology | 1,337,670,383 | 1,337,670,383 | — | — |
Materials | 43,300,098 | 43,300,098 | — | — |
Real Estate | 61,241,314 | 61,241,314 | — | — |
TOTAL COMMON STOCKS | $3,248,462,698 | $3,232,757,119 | $15,705,579 | $— |
PREFERRED STOCKS | ||||
Health Care | — 1 | — | — | — 1 |
Information Technology | 6,930,425 | — | — | 6,930,425 |
TOTAL PREFERRED STOCKS | $6,930,425 | $— | $— | $6,930,425 |
SPECIAL PURPOSE VEHICLE | ||||
Information Technology | 10,700,064 | — | — | 10,700,064 |
TOTAL INVESTMENTS IN SECURITIES | $3,266,093,187 | $3,232,757,119 | $15,705,579 | $17,630,489 |
- 32 -
THE ALGER FUNDS IINOTES TO FINANCIAL STATEMENTS (Continued)
Alger Spectra Fund | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 |
SECURITIES SOLD SHORT | ||||
COMMON STOCKS | ||||
Consumer Discretionary | $(27,003,407 ) | $(27,003,407 ) | $— | $— |
Consumer Staples | (13,378,748 ) | (13,378,748 ) | — | — |
Financials | (1,816,443 ) | (1,816,443 ) | — | — |
Health Care | (8,779,819 ) | (8,779,819 ) | — | — |
Industrials | (24,799,034 ) | (24,799,034 ) | — | — |
Information Technology | (25,860,804 ) | (25,860,804 ) | — | — |
Market Indices | (95,006,925 ) | (95,006,925 ) | — | — |
Materials | (4,073,790 ) | (4,073,790 ) | — | — |
TOTAL COMMON STOCKS | $(200,718,970 ) | $(200,718,970 ) | $— | $— |
Alger Dynamic Opportunities Fund | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 |
COMMON STOCKS | ||||
Communication Services | $23,546,690 | $23,546,690 | $— | $— |
Consumer Discretionary | 27,582,370 | 27,582,370 | — | — |
Consumer Staples | 909 | 909 | — | — |
Energy | 4,683,228 | 4,683,228 | — | — |
Financials | 10,782,469 | 10,782,469 | — | — |
Health Care | 54,820,949 | 51,833,717 | — | 2,987,232 |
Industrials | 36,880,819 | 36,880,819 | — | — |
Information Technology | 54,937,288 | 54,937,288 | — | — |
Real Estate | 4,791,368 | 4,791,368 | — | — |
TOTAL COMMON STOCKS | $218,026,090 | $215,038,858 | $— | $2,987,232 |
PREFERRED STOCKS | ||||
Health Care | — 1 | — | — | — 1 |
REAL ESTATE INVESTMENT TRUST | ||||
Real Estate | 1,205,364 | 1,205,364 | — | — |
RIGHTS | ||||
Health Care | 93,320 | — | — | 93,320 |
SPECIAL PURPOSE VEHICLE | ||||
Information Technology | 1,323,488 | — | — | 1,323,488 |
SHORT-TERM INVESTMENTS | ||||
U.S. Government | 7,992,051 | 7,992,051 | — | — |
PURCHASED OPTIONS | ||||
Exchange Traded Options - Purchased | 139,590 | 139,590 | — | — |
TOTAL INVESTMENTS IN SECURITIES | $228,779,903 | $224,375,863 | $— | $4,404,040 |
- 33 -
THE ALGER FUNDS IINOTES TO FINANCIAL STATEMENTS (Continued)
Alger Dynamic Opportunities Fund | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 |
SECURITIES SOLD SHORT | ||||
COMMON STOCKS | ||||
Communication Services | $(2,890,367 ) | $(2,890,367 ) | $— | $— |
Consumer Discretionary | (12,645,071 ) | (12,645,071 ) | — | — |
Consumer Staples | (5,639,684 ) | (5,639,684 ) | — | — |
Energy | (680,477 ) | (680,477 ) | — | — |
Exchange Traded Funds | (1,044,878 ) | (1,044,878 ) | — | — |
Financials | (5,385,007 ) | (1,777,964 ) | (3,607,043 ) | — |
Health Care | (12,255,238 ) | (12,255,238 ) | — | — |
Industrials | (10,143,282 ) | (10,143,282 ) | — | — |
Information Technology | (16,407,716 ) | (16,407,716 ) | — | — |
Materials | (1,100,807 ) | (1,100,807 ) | — | — |
Real Estate | (2,545,878 ) | (2,545,878 ) | — | — |
TOTAL COMMON STOCKS | $(70,738,405 ) | $(67,131,362 ) | $(3,607,043 ) | $— |
REAL ESTATE INVESTMENT TRUST | ||||
Real Estate | (459,999 ) | (459,999 ) | — | — |
TOTAL SECURITIES SOLD SHORT | $(71,198,404 ) | $(67,591,361 ) | $(3,607,043 ) | $— |
FINANCIAL DERIVATIVE INSTRUMENTS - ASSETS | ||||
Swaps - Contracts for difference | 846,409 | — | 846,409 | — |
FINANCIAL DERIVATIVE INSTRUMENTS - LIABILITIES | ||||
Swaps - Contracts for difference | (548,221 ) | — | (548,221 ) | — |
Exchange-Traded Options Written | (52,900 ) | (52,900 ) | — | — |
TOTAL FINANCIAL DERIVATIVE INSTRUMENTS - LIABILITIES | $(601,121 ) | $(52,900 ) | $(548,221 ) | $— |
Alger Emerging Markets Fund | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 |
COMMON STOCKS | ||||
Consumer Discretionary | $7,312,814 | $5,316,723 | $1,996,091 | $— |
Consumer Staples | 2,168,270 | — | 2,168,270 | — |
Energy | 591,122 | 591,122 | — | — |
Financials | 2,208,725 | 1,610,805 | 597,920 | — |
Health Care | 871,820 | 419,782 | 452,038 | — |
Industrials | 1,092,210 | 702,941 | 389,269 | — |
Information Technology | 4,901,647 | 1,139,529 | 3,762,118 | — |
Materials | 644,633 | — | 644,633 | — |
TOTAL COMMON STOCKS | $19,791,241 | $9,780,902 | $10,010,339 | $— |
RIGHTS | ||||
Industrials | 210 | 210 | — | — |
TOTAL INVESTMENTS IN SECURITIES | $19,791,451 | $9,781,112 | $10,010,339 | $— |
- 34 -
THE ALGER FUNDS IINOTES TO FINANCIAL STATEMENTS (Continued)
Alger Responsible Investing Fund | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 |
COMMON STOCKS | ||||
Communication Services | $5,958,628 | $5,958,628 | $— | $— |
Consumer Discretionary | 12,501,668 | 12,501,668 | — | — |
Consumer Staples | 1,913,247 | 1,913,247 | — | — |
Financials | 6,751,664 | 6,751,664 | — | — |
Health Care | 10,183,098 | 10,183,098 | — | — |
Industrials | 6,015,630 | 6,015,630 | — | — |
Information Technology | 39,051,290 | 39,051,290 | — | — |
Materials | 1,410,735 | 1,410,735 | — | — |
Utilities | 456,259 | 456,259 | — | — |
TOTAL COMMON STOCKS | $84,242,219 | $84,242,219 | $— | $— |
REAL ESTATE INVESTMENT TRUST | ||||
Real Estate | 2,070,059 | 2,070,059 | — | — |
TOTAL INVESTMENTS IN SECURITIES | $86,312,278 | $86,312,278 | $— | $— |
1 | Alger Spectra Fund's and Alger Dynamic Opportunities Fund's holdings of Prosetta Biosciences, Inc., Series D shares are classified as a Level 3 investment and are fair valued at zero as of January 31, 2024. |
FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |
Alger Spectra Fund | Preferred Stocks |
Opening balance at November 1, 2023 | $ 7,111,465* |
Transfers into Level 3 | — |
Transfers out of Level 3 | — |
Total gains or losses | |
Included in net realized gain (loss) on investments | |
Included in net change in unrealized appreciation (depreciation) on investments | (181,040) |
Purchases and sales | — |
Purchases | — |
Sales/Distributions | — |
Closing balance at January 31, 2024 | 6,930,425* |
Net change in unrealized appreciation (depreciation) attributable to investments still held at January 31, 2024 | $ (181,040) |
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THE ALGER FUNDS IINOTES TO FINANCIAL STATEMENTS (Continued)
FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |
Alger Spectra Fund | Special Purpose Vehicle |
Opening balance at November 1, 2023 | $ 10,980,063 |
Transfers into Level 3 | — |
Transfers out of Level 3 | — |
Total gains or losses | |
Included in net realized gain (loss) on investments | — |
Included in net change in unrealized appreciation (depreciation) on investments | (279,999) |
Purchases and sales | |
Purchases | — |
Sales/Distributions | — |
Closing balance at January 31, 2024 | 10,700,064 |
Net change in unrealized appreciation (depreciation) attributable to investments still held at January 31, 2024 | $ (279,999) |
FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |
Alger Dynamic Opportunities Fund | Common Stocks |
Opening balance at November 1, 2023 | $ 3,628,822 |
Transfers into Level 3 | — |
Transfers out of Level 3 | — |
Total gains or losses | |
Included in net realized gain (loss) on investments | |
Included in net change in unrealized appreciation (depreciation) on investments | (641,590) |
Purchases and sales | |
Purchases | — |
Sales/Distributions | — |
Closing balance at January 31, 2024 | 2,987,232 |
Net change in unrealized appreciation (depreciation) attributable to investments still held at January 31, 2024 | $ (641,590) |
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THE ALGER FUNDS IINOTES TO FINANCIAL STATEMENTS (Continued)
FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |
Alger Dynamic Opportunities Fund | Preferred Stocks |
Opening balance at November 1, 2023 | —* |
Transfers into Level 3 | — |
Transfers out of Level 3 | — |
Total gains or losses | |
Included in net realized gain (loss) on investments | — |
Included in net change in unrealized appreciation (depreciation) on investments | — |
Purchases and sales | |
Purchases | — |
Sales/Distributions | — |
Closing balance at January 31, 2024 | —* |
Net change in unrealized appreciation (depreciation) attributable to investments still held at January 31, 2024 | $ — |
FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |
Alger Dynamic Opportunities Fund | Rights |
Opening balance at November 1, 2023 | $ 85,753 |
Transfers into Level 3 | — |
Transfers out of Level 3 | — |
Total gains or losses | |
Included in net realized gain (loss) on investments | |
Included in net change in unrealized appreciation (depreciation) on investments | 7,567 |
Purchases and sales | |
Purchases | — |
Sales/Distributions | — |
Closing balance at January 31, 2024 | 93,320 |
Net change in unrealized appreciation (depreciation) attributable to investments still held at January 31, 2024 | $ 7,567 |
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THE ALGER FUNDS IINOTES TO FINANCIAL STATEMENTS (Continued)
FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |
Alger Dynamic Opportunities Fund | Special Purpose Vehicle |
Opening balance at November 1, 2023 | $ 1,358,121 |
Transfers into Level 3 | — |
Transfers out of Level 3 | — |
Total gains or losses | |
Included in net realized gain (loss) on investments | — |
Included in net change in unrealized appreciation (depreciation) on investments | (34,633) |
Purchases and sales | |
Purchases | — |
Sales/Distributions | — |
Closing balance at January 31, 2024 | 1,323,488 |
Net change in unrealized appreciation (depreciation) attributable to investments still held at January 31, 2024 | $ (34,633) |
* | Includes securities that are fair valued at zero. |
The following table provides quantitative information about each Fund's Level 3 fair value measurements of the Funds' investments as of January 31, 2024. The table below is not intended to be all-inclusive, but rather provides information on the Level 3 inputs as they relate to the Funds' fair value measurements.
Fair Value January 31, 2024 | Valuation Methodology | Unobservable Input | Input/Range | Weighted Average Inputs | |
Alger Spectra Fund | |||||
Preferred Stocks | $—* | Income Approach | Discount Rate | 100.00% | N/A |
Preferred Stocks | 6,930,425 | Market Approach | Revenue Multiple | 10.50x-12.50x | N/A |
Special Purpose Vehicle | 10,700,064 | Market Approach | Revenue Multiple | 10.50x-12.50x | N/A |
Alger Dynamic Opportunities Fund | |||||
Common Stocks | 2,987,232 | Market Approach | Revenue Multiple Transaction Price | 6.00x-7.00x N/A | N/A |
Preferred Stocks | —* | Income Approach | Discount Rate | 100.00% | N/A |
Rights | 93,320 | Income Approach | Discount Rate Probability of Success | 7.18%-8.11% 0.00%-55.00% | N/A |
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THE ALGER FUNDS IINOTES TO FINANCIAL STATEMENTS (Continued)
Fair Value January 31, 2024 | Valuation Methodology | Unobservable Input | Input/Range | Weighted Average Inputs | |
Special Purpose Vehicle | $1,323,488 | Market Approach | Revenue Multiple | 10.50x-12.50x | N/A |
* | Prosetta Biosciences, Inc., Series D shares are classified as a Level 3 investment and are fair valued at zero as of January 31, 2024. |
The significant unobservable inputs used in the fair value measurement of each Fund's securities are revenue and EBITDA multiples, discount rates, and the probability of success of certain outcomes. Significant increases and decreases in these inputs in isolation and interrelationships between these inputs would have resulted in significantly higher or lower fair value measurements than those noted in the table above. Generally, all other things being equal, increases in revenue and EBITDA multiples, decreases in discount rates, and increases in the probability of success result in higher fair value measurements, whereas decreases in revenues and EBITDA multiples, increases in discount rates, and decreases in the probability of success result in lower fair value measurements.
NOTE 4 — Derivatives:
FASB Accounting Standards Codification 815 – Derivatives and Hedging (“ASC 815”) requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements.
Options — The Funds seek to capture the majority of the returns associated with equity market investments. To meet this investment goal, the Funds invest in a broadly diversified portfolio of common stocks, the Funds may also buy and sell call and put options on equities and equity indexes. The Funds may also purchase call options to increase their exposure to the stock market and also provide diversification of risk. The Funds may also purchase put options in order to protect from significant market declines that may occur over a short period of time. The Funds may also write covered call and cash secured put options to generate cash flows while reducing the volatility of the Funds’ portfolios. The cash flows may be an important source of the Funds’ returns, although written call options may reduce the Funds’ ability to profit from increases in the value of the underlying security or equity portfolio. The value of a call option generally increases as the price of the underlying stock increases and decreases as the stock decreases in price. Conversely, the value of a put option generally increases as the price of the underlying stock decreases and decreases as the stock increases in price. The combination of the diversified stock portfolio and the purchase and sale of options is intended to provide the Funds with the majority of the returns associated with equity market investments but with reduced volatility
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THE ALGER FUNDS IINOTES TO FINANCIAL STATEMENTS (Continued)
and returns that are augmented with the cash flows from the sale of options. During the period ended January 31, 2024, options were used in accordance with these objectives.
The Funds’ option contracts were not subject to any rights of offset with any counterparty. All of the Funds’ options were exchange traded which utilize a clearinghouse that acts as an intermediary between buyer and seller, receiving initial and maintenance margin from both, and guaranteeing performance of the option contract.
Forward foreign currency contracts — In connection with portfolio purchases and sales of securities denominated in foreign currencies, the Funds may enter into forward foreign currency contracts. Additionally, the Funds may enter into such contracts to economically hedge certain other foreign currency denominated investments. These contracts are valued at the current cost of covering or offsetting such contracts. In the event that counterparties fail to settle these currency contracts or the related foreign security trades, a Fund could be exposed to foreign currency fluctuations.
Contracts for Differences — The Funds may enter into CFDs. CFDs are leveraged derivative instruments that allow a Fund to take a position on the change in the market price of an underlying asset, such as a stock, or the value of an index or currency exchange rate. With a short CFD, a Fund is seeking to profit from a decrease in the market price of the asset. CFDs are subject to liquidity risk because the liquidity of CFDs is based on the liquidity of the underlying instrument, and are subject to counterparty risk, i.e., the risk that the counterparty to the CFD transaction may be unable or unwilling to make payments or to otherwise honor its financial obligations under the terms of the contract. It is also possible that the market price of the CFD will move between the time the order is placed by a Fund and when it is executed by the issuer, which can result in the trade being executed at a less favorable price. CFDs, like many other derivative instruments, involve the risk that, if the derivative security declines in value, additional margin would be required to maintain the margin level. The seller may require a Fund to deposit additional sums to cover this decline in value, and the margin call may be made at short notice. If additional margin is not provided in time, the seller may liquidate the positions at a loss which a Fund is liable. The potential for margin calls and large losses are much greater in CFDs than in other leveraged products. Most CFDs are traded OTC. CFDs are not registered with the SEC or any U.S. regulator, and are not subject to U.S. regulation. In a short position, a Fund will receive or pay an amount based upon the amount, if any, by which the notional amount of the CFD would have decreased or increased in value had it sold the particular stocks short, less the dividends that would have been paid on those stocks, plus a floating rate of interest on the notional amount of the CFD. All of these components are reflected in the market value of the CFD.
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THE ALGER FUNDS IINOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 5 — Affiliated Securities:
During the three-month period ended January 31, 2024, as disclosed in the following table, certain Funds held 5% or more of the outstanding voting securities of the issuers listed below. As such, these issuers were “affiliated persons” of the applicable Fund(s) for purposes of the 1940 Act. Transactions during the period ended January 31, 2024 with such affiliated persons are summarized below. During this period, other Funds in the Trust may also have held voting shares of the issuers at levels below 5%.
Security | Shares Held at October 31, 2023 | Shares Purchased | Shares Sold | Shares Held at January 31, 2024 | Dividend Income | Realized Gain (Loss) | Net Change in Unrealized App(Dep) | Value at January 31, 2024 |
Alger Spectra Fund | ||||||||
Preferred Stocks | ||||||||
Prosetta Biosciences, Inc., Series D1 | 2,912,012 | — | — | 2,912,012 | $— | $— | $— | $— 2 |
Special Purpose Vehicle | ||||||||
Crosslink Ventures C, LLC, Cl. A3 | — | — | — | — | — | — | (172,578 ) | 6,595,008 |
Crosslink Ventures C, LLC, Cl. B3 | — | — | — | — | — | — | (107,421 ) | 4,105,056 |
Total | $— | $— | $(279,999 ) | $10,700,064 |
Security | Shares Held at October 31, 2023 | Shares Purchased | Shares Sold | Shares Held at January 31, 2024 | Dividend Income | Realized Gain (Loss) | Net Change in Unrealized App(Dep) | Value at January 31, 2024 |
Alger Dynamic Opportunities Fund | ||||||||
Preferred Stocks | ||||||||
Prosetta Biosciences, Inc., Series D1 | 41,418 | — | — | 41,418 | $— | $— | $— | $— 2 |
Special Purpose Vehicle | ||||||||
Crosslink Ventures C, LLC, Cl. A3 | — | — | — | — | — | — | (21,719 ) | 829,984 |
Crosslink Ventures C, LLC, Cl. B3 | — | — | — | — | — | — | (12,914 ) | 493,504 |
Total | $— | $— | $(34,633 ) | $1,323,488 |
1 | Prosetta Biosciences, Inc., Series D is deemed to be an affiliate of the Funds because the Funds and Prosetta Biosciences, Inc., Series D are under common control. |
2 | Prosetta Biosciences, Inc., Series D shares are classified as a Level 3 investment and are fair valued at zero as of January 31, 2024 |
3 | The Alger Fund Complex and other entities managed by Alger Management fully own Crosslink Ventures C, LLC, Class A and Crosslink Ventures C, LLC, Class B. There were no capital increases or decreases for the period ended January 31, 2024. |
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