Mid Cap Growth fund seekers should consider taking a look at Alger Mid Cap Growth Institutional Fund I (ALMRX). ALMRX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
ALMRX is part of the Mid Cap Growth section, a segment that boasts a wide array of possible selections. While Mid Cap Growth mutual funds choose companies with a stock market valuation between $2 billion and $10 billion, stocks in these funds are also expected to show broad considerable growth opportunities for investors compared to their peers. To be considered a growth stock, companies must consistently report impressive sales and/or earnings growth.
History of Fund/Manager
Alger Funds is based in New York, NY, and is the manager of ALMRX. The Alger Mid Cap Growth Institutional Fund I made its debut in November of 1993 and ALMRX has managed to accumulate roughly $108 million in assets, as of the most recently available information. Dan C. Chung is the fund’s current manager and has held that role since January of 2018.
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 23.98%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 23.61%, which places it in the top third during this time-frame.
When looking at a fund’s performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 17.61%, the standard deviation of ALMRX over the past three years is 23.42%. The standard deviation of the fund over the past 5 years is 19.07% compared to the category average of 14.42%. This makes the fund more volatile than its peers over the past half-decade.
With a 5-year beta of 1.07, the fund is likely to be more volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio’s performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. With a positive alpha of 4.6, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, ALMRX is a no load fund. It has an expense ratio of 1.25% compared to the category average of 1.17%. ALMRX is actually more expensive than its peers when you consider factors like cost.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Overall, Alger Mid Cap Growth Institutional Fund I ( ALMRX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, Alger Mid Cap Growth Institutional Fund I ( ALMRX ) looks like a good potential choice for investors right now.
Your research on the Mid Cap Growth segment doesn’t have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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