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At Barron's

The Mistake People Make With Indexing, According to This CEO

At Barron's

At Barron's

Business

4.717 Ratings

🗓️ 31 October 2024

⏱️ 24 minutes

🧾️ Download transcript

Summary

Alger CEO Dan Chung said that "obsessive focus on categories and benchmarks and relative and returns" can inadvertenly cause allocation issues for investors as part of a wider conversation with Barron's.

Transcript

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0:00.0

Hello everyone and welcome to Ad Barrens.

0:07.0

I'm Andy Surwer and welcome to our guest, Dan Chung, CEO of Alger.

0:12.0

Dan, nice to see you.

0:13.0

Thank you, Andy.

0:14.0

So let me start off by asking you about Alger.

0:18.0

It's a privately owned money management firm. And maybe how is it different from

0:24.1

other similar firms? I think we're different. And first, we have a long history, founded in

0:30.1

1964. And an illustrious one in terms of sort of the intellectual foundation of the money

0:36.1

management industry. In particular, our founder, Fred Alger, is credited with being sort of the intellectual foundation of the money management industry, in particular, our founder, Fred Alger, is credited with being sort of the pioneer of the growth style of investing.

0:45.1

And then flipping where 60 years this year, I think what makes us different also is that we've stuck to our knitting, focused on our core of growth, fundamental investing,

0:55.0

and not really wavered from that for 60 years. So today we're bigger, a little bit more diverse,

1:01.0

but in many ways our investment philosophy and the core of the firm is still the same.

1:05.0

Right, 22, 26 billion?

1:08.0

26 billion.

1:09.0

26 billion at this point. And talk to me about sticking to this growth foundation, orientation, I should say.

1:16.7

Why haven't you branched out and, like, you know, gotten into value or gotten into fixed income

1:22.1

or bought into fixed income manager, those kinds of things?

1:25.4

I think is first and foremost because we're really

1:31.6

focused on our people. And our people as professionals are really just passionate investors.

1:37.7

And we couple that with, I think, hard work, training around our investment philosophy of investing in positive dynamic change.

1:46.5

And I think what you get is we get passionate growth investors.

1:50.1

So as a result, whether you're a junior analyst, a salesperson, a portfolio manager,

...

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