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Is Alger Mid Cap Growth Institutional Fund I (ALMRX) a Strong Mutual Fund Pick Right Now?
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Having trouble finding a Mutual Fund Equity Report fund? Well, Alger Mid Cap Growth Institutional Fund I (ALMRX - Free Report) would not be a good potential starting point right now. ALMRX holds a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Alger Funds is based in New York, NY, and is the manager of ALMRX. Since Alger Mid Cap Growth Institutional Fund I made its debut in November of 1993, ALMRX has garnered more than $42.48 million in assets. Dan C. Chung is the fund's current manager and has held that role since January of 2018.
Performance
Of course, investors look for strong performance in funds. ALMRX has a 5-year annualized total return of 6.81% and it sits in the bottom third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 6.27%, which places it in the bottom 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. The standard deviation of ALMRX over the past three years is 26.89% compared to the category average of 20.23%. Looking at the past 5 years, the fund's standard deviation is 23.99% compared to the category average of 17.66%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.08, so it is likely going to be more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. ALMRX's 5-year performance has produced a negative alpha of -2.43, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is largely on equities that are traded in the United States.
The mutual fund currently has 86.39% of its holdings in stocks, with an average market capitalization of $24.31 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Other
Retail Trade
With turnover at about 199.22%, this fund is making more trades in a given year than the average of comparable funds.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, ALMRX is a no load fund. It has an expense ratio of 1.43% compared to the category average of 1.15%. From a cost perspective, ALMRX is actually more expensive than its peers.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Bottom Line
Overall, Alger Mid Cap Growth Institutional Fund I ( ALMRX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and higher fees, this fund looks like a somewhat weak choice for investors right now.
Your research on the Mutual Fund Equity Report 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. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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Is Alger Mid Cap Growth Institutional Fund I (ALMRX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Mutual Fund Equity Report fund? Well, Alger Mid Cap Growth Institutional Fund I (ALMRX - Free Report) would not be a good potential starting point right now. ALMRX holds a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Alger Funds is based in New York, NY, and is the manager of ALMRX. Since Alger Mid Cap Growth Institutional Fund I made its debut in November of 1993, ALMRX has garnered more than $42.48 million in assets. Dan C. Chung is the fund's current manager and has held that role since January of 2018.
Performance
Of course, investors look for strong performance in funds. ALMRX has a 5-year annualized total return of 6.81% and it sits in the bottom third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 6.27%, which places it in the bottom 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. The standard deviation of ALMRX over the past three years is 26.89% compared to the category average of 20.23%. Looking at the past 5 years, the fund's standard deviation is 23.99% compared to the category average of 17.66%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.08, so it is likely going to be more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. ALMRX's 5-year performance has produced a negative alpha of -2.43, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is largely on equities that are traded in the United States.
The mutual fund currently has 86.39% of its holdings in stocks, with an average market capitalization of $24.31 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Other
- Retail Trade
With turnover at about 199.22%, this fund is making more trades in a given year than the average of comparable funds.Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, ALMRX is a no load fund. It has an expense ratio of 1.43% compared to the category average of 1.15%. From a cost perspective, ALMRX is actually more expensive than its peers.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Bottom Line
Overall, Alger Mid Cap Growth Institutional Fund I ( ALMRX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and higher fees, this fund looks like a somewhat weak choice for investors right now.
Your research on the Mutual Fund Equity Report 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. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.