April 16, 2018

How to Find Coming of Age Companies Whose Stocks Could Rise 10 Fold

This article at Marketwatch focuses on the Alger Small Cap Focus Fund.  Not only do they look at the fund's holdings, but they also discuss the philosophy behind the companies that they add to the portfolio:

"At the initial point of investing, we look for companies with durable business models but operating revenue of less than $500 million. The sweet spot is probably $100 million to $200 million. We look for companies to double revenue within three to five years.
We are not looking for stocks to shoot up 20% to 30% in this portfolio. We are looking for a stock to grow two, three, four, five or 10-fold over a long period. We invest in long-term, value-creating engines. That’s how alpha is generated."

The top holdings of the fund as of Jan. 31 2018 are as follows:


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