N-Q 1 algernq_01312018.htm algernq_01312018.htm - Generated by SEC Publisher for SEC Filing

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-1355

The Alger Funds

__________________________________________________________________
(Exact name of registrant as specified in charter)

360 Park Avenue South, New York, New York 10010

__________________________________________________________________
(Address of principal executive offices) (Zip code)

Mr. Hal Liebes

Fred Alger Management, Inc.

360 Park Avenue South

New York, New York 10010

__________________________________________________________________
(Name and address of agent for service)

Registrant's telephone number, including area code: 212-806-8800

Date of fiscal year end: October 31

Date of reporting period: January 31, 2018

 

ITEM 1. Schedule of Investments.

 

THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND
Schedule of Investments January 31, 2018 (Unaudited)

COMMON STOCKS—95.9%   SHARES     VALUE
AEROSPACE & DEFENSE—1.3%          
General Dynamics Corp. 55,127   $ 12,264,655
The Boeing Co. 55,588     19,698,720
United Technologies Corp. 57,809     7,978,220
          39,941,595
AIR FREIGHT & LOGISTICS—0.8%          
FedEx Corp. 95,962     25,188,106
APPAREL ACCESSORIES & LUXURY GOODS—0.9%          
adidas AG 42,616     9,904,103
PVH Corp. 108,462     16,820,287
          26,724,390
APPLICATION SOFTWARE—3.8%          
Adobe Systems, Inc. * 119,417     23,854,740
Autodesk, Inc. * 240,945     27,858,061
salesforce. com, Inc. * 552,506     62,935,958
        114,648,759
ASSET MANAGEMENT & CUSTODY BANKS—0.7%          
BlackRock, Inc. , Cl. A 23,324     13,103,423
WisdomTree Investments, Inc. 671,586     7,783,682
          20,887,105
AUTO PARTS & EQUIPMENT—0.4%          
Aptiv PLC. 143,261     13,592,604
BIOTECHNOLOGY—4.2%          
AbbVie, Inc. 237,629     26,666,726
ACADIA Pharmaceuticals, Inc. * 158,111     4,729,100
BioMarin Pharmaceutical, Inc. * 111,131     10,027,350
Celgene Corp. * 116,138     11,748,520
Clovis Oncology, Inc. * 49,713     3,007,636
Exact Sciences Corp. * 280,135     13,925,511
Sarepta Therapeutics, Inc. * 210,213     13,777,360
Vertex Pharmaceuticals, Inc. * 259,913     43,371,682
        127,253,885
BROADCASTING—0.3%          
CBS Corp. , Cl. B 181,863     10,477,127
CABLE & SATELLITE—1.7%          
Charter Communications, Inc. , Cl. A* 23,042     8,692,595
Comcast Corp. , Cl. A 987,595     42,002,415
          50,695,010
COMMUNICATIONS EQUIPMENT—0.1%          
Palo Alto Networks, Inc. * 28,237     4,457,775
CONSTRUCTION MACHINERY & HEAVY TRUCKS—0.5%        
Caterpillar, Inc. 98,330     16,006,157
CONSTRUCTION MATERIALS—1.1%          
Vulcan Materials Co. 240,444     32,556,118
CONSUMER FINANCE—0.1%          
LendingClub Corp. * 1,175,509     4,302,363

 

- 1 -

 

THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

COMMON STOCKS—95.9% (CONT. )   SHARES     VALUE
DATA PROCESSING & OUTSOURCED SERVICES—4.0%        
Visa, Inc. , Cl. A 974,109 $ 121,013,561
DIVERSIFIED BANKS—3.7%          
Bank of America Corp. 2,224,728     71,191,296
Citigroup, Inc. 223,088     17,507,946
JPMorgan Chase & Co. 196,561     22,736,211
        111,435,453
DIVERSIFIED CHEMICALS—0.7%          
DowDuPont, Inc. 269,908     20,399,647
DIVERSIFIED SUPPORT SERVICES—0.5%          
Cintas Corp. 88,111     14,842,298
ELECTRICAL COMPONENTS & EQUIPMENT—0.0%          
Rockwell Automation, Inc. 7,157     1,412,005
FINANCIAL EXCHANGES & DATA—1.9%          
Intercontinental Exchange, Inc. 489,899     36,174,142
S&P Global, Inc. 115,802     20,971,742
          57,145,884
FOOD DISTRIBUTORS—0.1%          
Performance Food Group Co. * 134,094     4,606,129
HEALTH CARE EQUIPMENT—3.2%          
ABIOMED, Inc. * 23,314     5,478,790
Boston Scientific Corp. * 713,466     19,948,510
Danaher Corp. 361,211     36,583,450
Intuitive Surgical, Inc. 31,175     13,457,312
Medtronic PLC. 174,444     14,982,995
Zimmer Biomet Holdings, Inc. 60,299     7,665,209
          98,116,266
HOME ENTERTAINMENT SOFTWARE—0.6%          
Electronic Arts, Inc. * 142,505     18,092,435
HOME IMPROVEMENT RETAIL—2.4%          
The Home Depot, Inc. 368,873     74,106,586
HOTELS RESORTS & CRUISE LINES—0.5%          
Norwegian Cruise Line Holdings Ltd. * 273,199     16,594,107
HOUSEWARES & SPECIALTIES—0.3%          
Newell Brands, Inc. 315,949     8,353,692
HYPERMARKETS & SUPER CENTERS—1.0%          
Wal-Mart Stores, Inc. 275,681     29,387,595
INDUSTRIAL CONGLOMERATES—2.7%          
Honeywell International, Inc. 514,286     82,116,046
INDUSTRIAL GASES—1.4%          
Air Products & Chemicals, Inc. 246,375     41,482,159
INDUSTRIAL MACHINERY—1.3%          
Stanley Black & Decker, Inc. 234,126     38,918,765
INTERNET & DIRECT MARKETING RETAIL—10.2%          
Amazon. com, Inc. * 191,589     277,974,564

 

- 2 -

 

THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

COMMON STOCKS—95.9% (CONT. )   SHARES     VALUE
INTERNET & DIRECT MARKETING RETAIL—10.2% (CONT. )      
Netflix, Inc. * 111,765   $ 30,210,080
        308,184,644
INTERNET SOFTWARE & SERVICES—14.1%          
Alibaba Group Holding Ltd. #* 391,465     79,972,385
Alphabet, Inc. , Cl. C* 131,201     153,497,298
Altaba, Inc. * 464,360     37,093,077
Facebook, Inc. , Cl. A* 841,708     157,306,808
Palantir Technologies, Inc. , Cl. A*,@,(a) 153,282     881,371
        428,750,939
INVESTMENT BANKING & BROKERAGE—1.1%          
Morgan Stanley 571,710     32,330,201
IT CONSULTING & OTHER SERVICES—0.6%          
Cognizant Technology Solutions Corp. , Cl. A 216,981     16,920,178
LEISURE FACILITIES—0.7%          
Vail Resorts, Inc. 92,331     20,179,863
LIFE SCIENCES TOOLS & SERVICES—0.6%          
Illumina, Inc. * 73,204     17,030,179
MANAGED HEALTH CARE—3.4%          
Aetna, Inc. 83,701     15,637,021
UnitedHealth Group, Inc. 364,597     86,329,277
        101,966,298
OIL & GAS EQUIPMENT & SERVICES—0.7%          
Halliburton Co. 387,303     20,798,171
OIL & GAS EXPLORATION & PRODUCTION—1.0%          
Pioneer Natural Resources Co. 170,582     31,201,154
PAPER PACKAGING—0.4%          
International Paper Co. 176,983     11,125,151
PHARMACEUTICALS—0.3%          
Bristol-Myers Squibb Co. 142,421     8,915,555
PROPERTY & CASUALTY INSURANCE—0.2%          
The Progressive Corp. 122,568     6,630,929
RAILROADS—1.0%          
Union Pacific Corp. 219,817     29,345,569
RESTAURANTS—1.1%          
McDonald's Corp. 192,466     32,938,631
SEMICONDUCTOR EQUIPMENT—1.4%          
Applied Materials, Inc. 765,520     41,054,838
SEMICONDUCTORS—4.9%          
Broadcom Ltd. 275,503     68,333,009
Cavium, Inc. * 132,327     11,747,991
Microchip Technology, Inc. 411,729     39,204,835
Micron Technology, Inc. * 341,834     14,944,982
NVIDIA Corp. 60,648     14,907,278
        149,138,095

 

- 3 -

 

THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

COMMON STOCKS—95.9% (CONT. )   SHARES       VALUE
SPECIALTY CHEMICALS—1.1%            
The Sherwin-Williams Co. 82,933     $ 34,592,184
SYSTEMS SOFTWARE—7.7%            
Microsoft Corp. 2,090,270       198,596,553
Red Hat, Inc. * 109,627       14,402,795
ServiceNow, Inc. * 114,361       17,024,922
VMware, Inc. , Cl. A* 42,947       5,316,409
          235,340,679
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—4.4%        
Apple, Inc. 799,419     133,846,723
TOBACCO—0.3%            
Philip Morris International, Inc. 98,729       10,586,711
TRADING COMPANIES & DISTRIBUTORS—0.3%            
United Rentals, Inc. * 54,041       9,787,365
WIRELESS TELECOMMUNICATION SERVICES—0.2%            
T-Mobile US, Inc. * 116,464       7,581,806
TOTAL COMMON STOCKS            
(Cost $1,953,571,762)         2,912,999,485
PREFERRED STOCKS—0.3%   SHARES       VALUE
INTERNET SOFTWARE & SERVICES—0.1%            
Palantir Technologies, Inc. , Cl. B*,@,(a) 625,130       3,594,498
Palantir Technologies, Inc. , Cl. D*,@,(a) 81,445       468,309
            4,062,807
PHARMACEUTICALS—0.2%            
Intarcia Therapeutics, Inc. , Series DD*,@,(a) 76,682       4,403,847
TOTAL PREFERRED STOCKS            
(Cost $7,149,501)           8,466,654
MASTER LIMITED PARTNERSHIP—0.8%   SHARES       VALUE
ASSET MANAGEMENT & CUSTODY BANKS—0.8%            
The Blackstone Group LP. 640,501       23,410,311
(Cost $17,726,121)           23,410,311
REAL ESTATE INVESTMENT TRUST—2.5%   SHARES       VALUE
SPECIALIZED—2.5%            
Crown Castle International Corp. 159,102       17,941,933
Equinix, Inc. 97,525       44,392,405
SBA Communications Corp. , Cl. A* 80,649       14,073,250
            76,407,588
TOTAL REAL ESTATE INVESTMENT TRUST            
(Cost $68,389,301)           76,407,588
Total Investments            
(Cost $2,046,836,685) 99.5 % $ 3,021,284,038
Unaffiliated Securities (Cost $2,046,836,685)           3,021,284,038
Other Assets in Excess of Liabilities 0.5 %     14,924,882
NET ASSETS 100.0 % $ 3,036,208,920

 

- 4 -

 

THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

# American Depositary Receipts.
(a) Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the
Board.
* Non-income producing security.
@ Restricted security - Investment in security not registered under the Securities Act of 1933. The investment is deemed to not be liquid
and may be sold only to qualified buyers.

        % of net assets       % of net assets  
  Acquisition   Acquisition (Acquisition     Market as of  
Security Date(s)   Cost Date)     Value 1/31/2018  
Intarcia Therapeutics, Inc. , Series                  
DD 03/27/14 $ 2,483,730 0.14 % $ 4,403,847 0.15 %
Palantir Technologies, Inc. , Cl. A 10/07/14   997,406 0.05 %   881,371 0.03 %
Palantir Technologies, Inc. , Cl. B 10/07/14   4,128,004 0.22 %   3,594,498 0.12 %
Palantir Technologies, Inc. , Cl. D 10/14/14   537,767 0.03 %   468,309 0.02 %
Total           $ 9,348,025 0.32 %
                   
See Notes to Financial Statements.                

 

- 5 -

 

THE ALGER FUNDS | ALGER INTERNATIONAL GROWTH FUND
Schedule of Investments January 31, 2018 (Unaudited)

COMMON STOCKS—97.5%   SHARES   VALUE
AUSTRALIA—1.6%        
DIVERSIFIED METALS & MINING—1.6%        
Rio Tinto Ltd. 48,000 $ 2,955,460
(Cost $2,404,516)        
AUSTRIA—1.9%        
DIVERSIFIED BANKS—1.9%        
Bawag Group AG*,(a) 24,000   1,397,658
Erste Group Bank AG 43,000   2,166,172
        3,563,830
(Cost $3,012,489)        
BRAZIL—0.7%        
DIVERSIFIED BANKS—0.7%        
Banco Bradesco SA 100,000   1,279,935
(Cost $996,968)        
CANADA—8.0%        
DIVERSIFIED BANKS—1.8%        
Royal Bank of Canada 39,000   3,339,143
FOOD RETAIL—1.3%        
Alimentation Couche-Tard, Inc. , Cl. B 45,000   2,354,077
INTEGRATED OIL & GAS—1.2%        
Suncor Energy, Inc. 60,000   2,173,482
LIFE & HEALTH INSURANCE—1.6%        
Manulife Financial Corp. 140,000   2,970,490
OIL & GAS EXPLORATION & PRODUCTION—2.1%        
Canadian Natural Resources Ltd. 79,000   2,696,699
Encana Corp. 100,000   1,236,485
        3,933,184
TOTAL CANADA        
(Cost $13,248,512)       14,770,376
CHINA—12.0%        
ALUMINUM—0.4%        
Aluminum Corp. of China Ltd. , Cl. H* 1,000,000   676,290
AUTOMOBILE MANUFACTURERS—0.7%        
BYD Co. , Ltd. , Cl. H 145,000   1,364,286
CASINOS & GAMING—1.1%        
Sands China Ltd. 340,000   2,020,513
DIVERSIFIED BANKS—1.3%        
China Construction Bank Corp. , Cl. H 2,170,000   2,491,315
ELECTRONIC EQUIPMENT & INSTRUMENTS—0.7%        
Hangzhou Hikvision Digital Technology Co. , Ltd. , Cl. A 200,000   1,264,600
INTEGRATED OIL & GAS—0.7%        
China Petroleum & Chemical Corp. , Cl. H 1,400,000   1,210,183
INTERNET SOFTWARE & SERVICES—6.3%        
Alibaba Group Holding Ltd. #* 29,200   5,965,268
Baidu, Inc. #* 3,700   913,604

 

- 6 -

 

THE ALGER FUNDS | ALGER INTERNATIONAL GROWTH FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

COMMON STOCKS—97.5% (CONT. )   SHARES   VALUE
CHINA—12.0% (CONT. )        
INTERNET SOFTWARE & SERVICES—6.3% (CONT. )        
Tencent Holdings Ltd. 82,000 $ 4,845,171
        11,724,043
OIL & GAS EXPLORATION & PRODUCTION—0.3%        
CNOOC Ltd. 320,000   502,996
WATER UTILITIES—0.5%        
Beijing Enterprises Water Group Ltd. 1,200,000   861,846
TOTAL CHINA        
(Cost $18,190,300)       22,116,072
FINLAND—1.0%        
PAPER PRODUCTS—1.0%        
Stora Enso OYJ 110,000   1,889,233
(Cost $1,912,593)        
FRANCE—7.9%        
APPAREL ACCESSORIES & LUXURY GOODS—1.4%        
LVMH Moet Hennessy Louis Vuitton SE 8,000   2,506,312
AUTO PARTS & EQUIPMENT—1.2%        
Valeo SA 28,061   2,209,753
DIVERSIFIED BANKS—1.5%        
BNP Paribas SA 34,000   2,808,528
ELECTRICAL COMPONENTS & EQUIPMENT—1.3%        
Schneider Electric SE 24,900   2,333,344
INTEGRATED OIL & GAS—1.6%        
TOTAL SA 51,000   2,957,334
PERSONAL PRODUCTS—0.9%        
L'Oreal SA 7,500   1,704,614
TOTAL FRANCE        
(Cost $12,920,182)       14,519,885
GERMANY—14.6%        
ADVERTISING—1.3%        
Stroeer SE & Co. KGaA 31,600   2,435,706
APPAREL ACCESSORIES & LUXURY GOODS—0.8%        
adidas AG 6,300   1,464,141
APPLICATION SOFTWARE—1.5%        
SAP SE 23,847   2,698,389
AUTOMOBILE MANUFACTURERS—1.2%        
Volkswagen AG 10,000   2,199,307
HEALTH CARE SERVICES—1.8%        
Fresenius Medical Care AG & Co. KGaA 29,000   3,343,000
INDUSTRIAL CONGLOMERATES—1.7%        
Siemens AG 20,045   3,043,283
INDUSTRIAL MACHINERY—0.5%        
Aumann AG*,(a) 12,000   989,743

 

- 7 -

 

THE ALGER FUNDS | ALGER INTERNATIONAL GROWTH FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

COMMON STOCKS—97.5% (CONT. )   SHARES   VALUE
GERMANY—14.6% (CONT. )        
INTERNET & DIRECT MARKETING RETAIL—0.5%        
Shop Apotheke Europe NV*,(a) 15,000 $ 866,086
IT CONSULTING & OTHER SERVICES—0.5%        
Bechtle AG 10,300   939,505
MULTI-LINE INSURANCE—2.1%        
Allianz SE 15,391   3,893,261
PHARMACEUTICALS—1.6%        
Bayer AG 22,200   2,909,381
SEMICONDUCTOR EQUIPMENT—0.5%        
Siltronic AG* 5,500   913,202
STEEL—0.6%        
thyssenkrupp AG 34,000   1,070,621
TOTAL GERMANY        
(Cost $23,850,725)       26,765,625
HONG KONG—1.5%        
LIFE & HEALTH INSURANCE—1.5%        
AIA Group Ltd. 312,693   2,670,869
(Cost $2,246,865)        
INDIA—1.7%        
DIVERSIFIED BANKS—0.9%        
HDFC Bank Ltd. 50,200   1,630,450
OIL & GAS REFINING & MARKETING—0.8%        
Reliance Industries Ltd. 96,000   1,450,563
TOTAL INDIA        
(Cost $2,582,519)       3,081,013
IRELAND—0.7%        
CONSTRUCTION MATERIALS—0.7%        
CRH PLC. 35,000   1,300,218
(Cost $1,220,143)        
ITALY—3.2%        
DIVERSIFIED BANKS—1.2%        
UniCredit SpA* 100,000   2,205,027
INTERNET & DIRECT MARKETING RETAIL—0.6%        
Yoox Net-A-Porter Group SpA* 23,750   1,115,669
LEISURE PRODUCTS—0.5%        
Technogym SpA*,(a) 85,000   931,088
OIL & GAS EQUIPMENT & SERVICES—0.9%        
Tenaris SA 90,000   1,572,277
TOTAL ITALY        
(Cost $4,793,207)       5,824,061
JAPAN—14.7%        
BREWERS—0.5%        
Asahi Group Holdings Ltd. 20,000   1,010,496
CONSUMER ELECTRONICS—1.6%        
Sony Corp. 62,000   2,973,723

 

- 8 -

 

THE ALGER FUNDS | ALGER INTERNATIONAL GROWTH FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

COMMON STOCKS—97.5% (CONT. )   SHARES   VALUE
JAPAN—14.7% (CONT. )        
DIVERSIFIED BANKS—2.4%        
Mitsubishi UFJ Financial Group, Inc. 581,000 $ 4,393,359
DRUG RETAIL—0.5%        
Qol Co. Ltd. 50,000   994,622
ELECTRONIC COMPONENTS—0.8%        
Alps Electric Co. , Ltd. 50,000   1,444,946
ELECTRONIC EQUIPMENT & INSTRUMENTS—0.7%        
Keyence Corp. 2,000   1,222,271
GENERAL MERCHANDISE STORES—0.6%        
Don Quijote Holdings Co. , Ltd. 21,500   1,191,285
INDUSTRIAL MACHINERY—2.3%        
DMG Mori Co. , Ltd. 62,000   1,419,759
FANUC Corp. 5,700   1,547,156
THK Co. , Ltd. 30,000   1,253,384
        4,220,299
LIFE & HEALTH INSURANCE—1.3%        
T&D Holdings, Inc. 130,000   2,331,034
REAL ESTATE SERVICES—1.1%        
Investors Cloud Co. Ltd. * 30,000   467,162
Open House Co. , Ltd. 25,008   1,470,247
        1,937,409
SEMICONDUCTOR EQUIPMENT—1.5%        
Disco Corp. 4,000   943,391
SUMCO Corp. 70,000   1,905,229
        2,848,620
WIRELESS TELECOMMUNICATION SERVICES—1.4%        
SoftBank Group Corp. 31,000   2,575,843
TOTAL JAPAN        
(Cost $22,416,229)       27,143,907
LUXEMBOURG—1.2%        
REAL ESTATE OPERATING COMPANIES—1.2%        
Aroundtown SA 270,000   2,174,154
(Cost $1,798,748)        
NETHERLANDS—1.3%        
LEISURE FACILITIES—0.5%        
Basic-Fit NV*,(a) 37,000   1,006,149
SEMICONDUCTOR EQUIPMENT—0.8%        
ASML Holding NV 7,000   1,420,720
TOTAL NETHERLANDS        
(Cost $2,145,982)       2,426,869
NORWAY—0.9%        
DIVERSIFIED BANKS—0.4%        
Sbanken ASA(a) 81,000   835,431

 

- 9 -

 

THE ALGER FUNDS | ALGER INTERNATIONAL GROWTH FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

COMMON STOCKS—97.5% (CONT. )   SHARES   VALUE
NORWAY—0.9% (CONT. )        
PACKAGED FOODS & MEATS—0.5%        
Leroy Seafood Group ASA* 165,000 $ 840,381
TOTAL NORWAY        
(Cost $1,621,758)       1,675,812
RUSSIA—0.4%        
FOOD RETAIL—0.4%        
X5 Retail Group NV(b) 20,000   767,836
(Cost $650,901)        
SOUTH KOREA—4.5%        
DIVERSIFIED METALS & MINING—0.8%        
Korea Zinc Co. , Ltd. * 3,000   1,444,274
STEEL—0.9%        
POSCO 4,500   1,602,146
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—2.8%    
Samsung Electronics Co. , Ltd. 2,200   5,132,702
TOTAL SOUTH KOREA        
(Cost $7,377,893)       8,179,122
SWEDEN—3.3%        
BUILDING PRODUCTS—0.5%        
Assa Abloy AB. , Cl. B 42,000   931,004
DIVERSIFIED BANKS—1.2%        
Nordea Bank AB 184,000   2,271,513
ELECTRONIC MANUFACTURING SERVICES—0.8%        
HMS Networks AB 94,000   1,550,791
OIL & GAS EXPLORATION & PRODUCTION—0.8%        
Lundin Petroleum AB 55,000   1,372,195
TOTAL SWEDEN        
(Cost $5,505,767)       6,125,503
SWITZERLAND—7.5%        
DIVERSIFIED CAPITAL MARKETS—2.3%        
Credit Suisse Group AG* 100,000   1,934,415
UBS Group AG 117,000   2,375,414
        4,309,829
INDUSTRIAL MACHINERY—0.9%        
Interroll Holding AG* 1,000   1,654,846
MULTI-LINE INSURANCE—1.3%        
Zurich Insurance Group AG 7,500   2,467,506
PACKAGED FOODS & MEATS—1.8%        
Nestle SA 38,000   3,283,044
PHARMACEUTICALS—1.2%        
Novartis AG 24,000   2,166,519
TOTAL SWITZERLAND        
(Cost $12,176,636)       13,881,744

 

- 10 -

 

THE ALGER FUNDS | ALGER INTERNATIONAL GROWTH FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

COMMON STOCKS—97.5% (CONT. )   SHARES       VALUE
TAIWAN—1.8%            
INDUSTRIAL MACHINERY—0.5%            
Airtac International Group 60,000     $ 950,889
SEMICONDUCTORS—1.3%            
Taiwan Semiconductor Manufacturing Co. , Ltd. 270,000       2,356,863
TOTAL TAIWAN            
(Cost $2,914,480)           3,307,752
UNITED KINGDOM—6.5%            
ASSET MANAGEMENT & CUSTODY BANKS—1.0%            
Man Group PLC. * 620,000       1,911,399
HOUSEHOLD PRODUCTS—1.4%            
Reckitt Benckiser Group PLC. 27,000       2,607,668
IT CONSULTING & OTHER SERVICES—1.0%            
Keywords Studios PLC. * 90,819       1,918,969
PHARMACEUTICALS—0.8%            
GW Pharmaceuticals PLC. #* 10,000       1,381,300
TRADING COMPANIES & DISTRIBUTORS—2.3%            
Ashtead Group PLC. 140,000       4,185,475
TOTAL UNITED KINGDOM            
(Cost $9,699,708)           12,004,811
UNITED STATES—0.6%            
SEMICONDUCTORS—0.6%            
Broadcom Ltd. 4,700       1,165,741
(Cost $1,013,605)            
TOTAL COMMON STOCKS            
(Cost $154,700,726)         179,589,828
RIGHTS—0.0%   SHARES       VALUE
ITALY—0.0%            
DIVERSIFIED BANKS—0.0%            
UniCredit SpA, 2/21/18* 100,000       496
(Cost $–)            
Total Investments            
(Cost $154,700,726) 97.5 % $ 179,590,324
Unaffiliated Securities (Cost $154,700,726)           179,590,324
Other Assets in Excess of Liabilities 2.5 %     4,548,292
NET ASSETS 100.0 % $ 184,138,616

 

# 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 are however deemed to be liquid and represent 3.3% of the net assets of the
Fund.
(b) Global Depositary Receipts.
* Non-income producing security.

See Notes to Financial Statements.

- 11 -

 

THE ALGER FUNDS | ALGER MID CAP GROWTH FUND
Schedule of Investments January 31, 2018 (Unaudited)

COMMON STOCKS—93.3%   SHARES   VALUE
AEROSPACE & DEFENSE—1.3%        
HEICO Corp. 31,825 $ 2,556,184
AIR FREIGHT & LOGISTICS—0.6%        
XPO Logistics, Inc. * 11,617   1,097,110
APPAREL ACCESSORIES & LUXURY GOODS—1.9%        
Michael Kors Holdings Ltd. * 18,950   1,250,700
PVH Corp. 14,946   2,317,826
        3,568,526
APPAREL RETAIL—2.0%        
Burlington Stores, Inc. * 13,515   1,644,910
Ross Stores, Inc. 26,705   2,200,225
        3,845,135
APPLICATION SOFTWARE—3.9%        
Autodesk, Inc. * 25,164   2,909,462
Paylocity Holding Corp. * 35,196   1,840,399
Splunk, Inc. * 20,275   1,872,802
Workday, Inc. , Cl. A* 7,392   886,227
        7,508,890
ASSET MANAGEMENT & CUSTODY BANKS—1.0%        
WisdomTree Investments, Inc. 167,173   1,937,535
AUTO PARTS & EQUIPMENT—1.0%        
Aptiv PLC. 17,467   1,657,269
Delphi Technologies PLC. 5,822   321,549
        1,978,818
AUTOMOTIVE RETAIL—0.9%        
AutoZone, Inc. * 2,337   1,788,833
BIOTECHNOLOGY—6.1%        
Agios Pharmaceuticals, Inc. * 4,962   390,807
BeiGene Ltd. #* 3,286   446,074
BioMarin Pharmaceutical, Inc. * 12,151   1,096,385
Bluebird Bio, Inc. * 9,962   2,041,214
Clovis Oncology, Inc. * 21,206   1,282,963
Exact Sciences Corp. * 25,916   1,288,284
Halozyme Therapeutics, Inc. * 26,040   486,427
Immunomedics, Inc. * 32,782   546,476
Incyte Corp. * 3,395   306,535
Neurocrine Biosciences, Inc. * 10,109   864,016
Sage Therapeutics, Inc. * 3,250   616,850
Sarepta Therapeutics, Inc. * 24,716   1,619,887
TESARO, Inc. * 10,291   694,231
        11,680,149
BUILDING PRODUCTS—2.5%        
Fortune Brands Home & Security, Inc. 35,496   2,517,731
Lennox International, Inc. 10,821   2,358,004
        4,875,735
CASINOS & GAMING—0.2%        
Wynn Resorts Ltd. 2,845   471,104

 

- 12 -

 

THE ALGER FUNDS | ALGER MID CAP GROWTH FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

COMMON STOCKS—93.3% (CONT. )   SHARES   VALUE
COMMUNICATIONS EQUIPMENT—1.2%        
Palo Alto Networks, Inc. * 14,969 $ 2,363,156
CONSTRUCTION MACHINERY & HEAVY TRUCKS—1.0%      
WABCO Holdings, Inc. * 12,893   1,990,550
CONSTRUCTION MATERIALS—1.7%        
Vulcan Materials Co. 23,513   3,183,660
CONSUMER FINANCE—0.3%        
LendingClub Corp. * 162,209   593,685
DATA PROCESSING & OUTSOURCED SERVICES—5.4%      
Alliance Data Systems Corp. 7,044   1,807,913
Fiserv, Inc. * 16,764   2,361,042
FleetCor Technologies, Inc. * 8,197   1,741,862
GDS Holdings Ltd. #* 20,901   596,515
Total System Services, Inc. 11,643   1,034,597
WNS Holdings Ltd. #* 28,513   1,267,688
Worldpay, Inc. , Cl. A* 19,875   1,596,161
        10,405,778
DISTRIBUTORS—0.9%        
LKQ Corp. * 43,505   1,828,515
DIVERSIFIED SUPPORT SERVICES—1.4%        
Cintas Corp. 16,148   2,720,131
ELECTRICAL COMPONENTS & EQUIPMENT—2.6%        
AMETEK, Inc. 12,379   944,518
Hubbell, Inc. , Cl. B 16,033   2,179,686
Rockwell Automation, Inc. 9,461   1,866,561
        4,990,765
ELECTRONIC COMPONENTS—0.8%        
Universal Display Corp. 9,940   1,584,436
ELECTRONIC EQUIPMENT & INSTRUMENTS—2.7%        
Cognex Corp. 10,070   628,066
Coherent, Inc. * 8,355   2,168,290
Trimble, Inc. * 55,838   2,462,456
        5,258,812
FINANCIAL EXCHANGES & DATA—2.2%        
Intercontinental Exchange, Inc. 19,320   1,426,589
MarketAxess Holdings, Inc. 9,748   1,912,655
S&P Global, Inc. 5,387   975,586
        4,314,830
GENERAL MERCHANDISE STORES—1.0%        
Dollar Tree, Inc. * 17,129   1,969,835
HEALTH CARE EQUIPMENT—5.6%        
ABIOMED, Inc. * 12,852   3,020,220
DexCom, Inc. * 13,122   763,700
Edwards Lifesciences Corp. * 5,590   707,582
IDEXX Laboratories, Inc. * 7,804   1,459,660
Insulet Corp. * 34,463   2,637,453

 

- 13 -

 

THE ALGER FUNDS | ALGER MID CAP GROWTH FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

COMMON STOCKS—93.3% (CONT. )   SHARES   VALUE
HEALTH CARE EQUIPMENT—5.6% (CONT. )        
Masimo Corp. * 13,398 $ 1,262,628
Teleflex, Inc. 713   198,036
Zimmer Biomet Holdings, Inc. 6,037   767,423
        10,816,702
HEALTH CARE SUPPLIES—1.2%        
Align Technology, Inc. * 8,829   2,313,198
HEALTH CARE TECHNOLOGY—1.3%        
Medidata Solutions, Inc. * 17,286   1,177,349
Veeva Systems, Inc. , Cl. A* 19,824   1,246,136
        2,423,485
HOME ENTERTAINMENT SOFTWARE—1.1%        
Electronic Arts, Inc. * 16,786   2,131,151
HOME FURNISHINGS—0.6%        
Mohawk Industries, Inc. * 4,314   1,212,493
HOMEBUILDING—0.6%        
Lennar Corp. , Cl. A 18,894   1,183,898
Lennar Corp. , Cl. B 377   19,091
        1,202,989
HOTELS RESORTS & CRUISE LINES—2.3%        
Extended Stay America, Inc. 110,194   2,229,225
Norwegian Cruise Line Holdings Ltd. * 37,212   2,260,257
        4,489,482
HOUSEHOLD PRODUCTS—0.7%        
Church & Dwight Co. , Inc. 27,769   1,356,516
INDUSTRIAL CONGLOMERATES—1.8%        
Roper Technologies, Inc. 12,253   3,438,069
INDUSTRIAL MACHINERY—3.2%        
Fortive Corp. 24,711   1,878,530
Parker-Hannifin Corp. 7,326   1,475,603
Stanley Black & Decker, Inc. 12,268   2,039,310
Welbilt, Inc. * 37,397   833,953
        6,227,396
INTERNET & DIRECT MARKETING RETAIL—0.5%        
Expedia, Inc. 7,537   964,811
INTERNET SOFTWARE & SERVICES—1.3%        
LogMeIn, Inc. 7,462   938,720
Match Group, Inc. * 37,325   1,304,136
Palantir Technologies, Inc. , Cl. A*,@,(a) 16,376   94,162
        2,337,018
IT CONSULTING & OTHER SERVICES—2.3%        
EPAM Systems, Inc. * 20,096   2,360,878
Gartner, Inc. * 14,473   2,007,984
        4,368,862
LEISURE FACILITIES—1.2%        
Vail Resorts, Inc. 10,699   2,338,373

 

- 14 -

 

THE ALGER FUNDS | ALGER MID CAP GROWTH FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

COMMON STOCKS—93.3% (CONT. )   SHARES   VALUE
LIFE SCIENCES TOOLS & SERVICES—3.1%        
Agilent Technologies, Inc. 18,792 $ 1,379,897
Illumina, Inc. * 12,045   2,802,149
Mettler-Toledo International, Inc. * 1,949   1,316,082
PRA Health Sciences, Inc. * 4,858   442,369
        5,940,497
MANAGED HEALTH CARE—0.8%        
WellCare Health Plans, Inc. * 7,733   1,626,869
METAL & GLASS CONTAINERS—0.8%        
Ball Corp. 40,984   1,568,867
OIL & GAS EXPLORATION & PRODUCTION—0.8%        
Encana Corp. 125,973   1,559,546
PACKAGED FOODS & MEATS—0.5%        
Pinnacle Foods, Inc. 14,479   896,829
PAPER PACKAGING—0.9%        
International Paper Co. 28,961   1,820,488
PHARMACEUTICALS—2.1%        
Aerie Pharmaceuticals, Inc. * 27,290   1,496,857
GW Pharmaceuticals PLC. #* 7,772   1,073,546
Zoetis, Inc. , Cl. A 18,300   1,404,159
        3,974,562
PROPERTY & CASUALTY INSURANCE—1.1%        
The Progressive Corp. 39,558   2,140,088
RAILROADS—0.4%        
Kansas City Southern 6,449   729,575
REGIONAL BANKS—1.9%        
Citizens Financial Group, Inc. 22,961   1,053,910
Regions Financial Corp. 136,846   2,631,549
        3,685,459
RESEARCH & CONSULTING SERVICES—0.5%        
FTI Consulting, Inc. * 20,420   887,657
RESTAURANTS—1.2%        
Dunkin' Brands Group, Inc. 16,357   1,057,480
Restaurant Brands International, Inc. 21,478   1,297,056
        2,354,536
SEMICONDUCTOR EQUIPMENT—2.1%        
Lam Research Corp. 21,281   4,075,737
SEMICONDUCTORS—3.9%        
Cavium, Inc. * 17,778   1,578,331
Marvell Technology Group Ltd. 40,041   934,157
Microchip Technology, Inc. 33,522   3,191,965
Skyworks Solutions, Inc. 18,777   1,825,312
        7,529,765
SPECIALIZED CONSUMER SERVICES—1.0%        
ServiceMaster Global Holdings, Inc. * 35,959   1,895,758

 

- 15 -

 

THE ALGER FUNDS | ALGER MID CAP GROWTH FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

COMMON STOCKS—93.3% (CONT. )   SHARES       VALUE
SPECIALTY STORES—0.5%            
Ulta Beauty, Inc. * 4,205     $ 933,930
SYSTEMS SOFTWARE—3.8%            
Proofpoint, Inc. * 19,725       2,012,345
Red Hat, Inc. * 21,417       2,813,765
ServiceNow, Inc. * 16,301       2,426,730
            7,252,840
TRADING COMPANIES & DISTRIBUTORS—1.0%            
United Rentals, Inc. * 10,817       1,959,067
TRUCKING—0.6%            
Old Dominion Freight Line, Inc. 7,585       1,110,823
TOTAL COMMON STOCKS            
(Cost $156,552,230)         180,075,610
PREFERRED STOCKS—0.6%   SHARES       VALUE
BIOTECHNOLOGY—0.4%            
Prosetta Biosciences, Inc. , Series D*,@,(a),(b) 219,610       685,183
INTERNET SOFTWARE & SERVICES—0.2%            
Palantir Technologies, Inc. , Cl. B*,@,(a) 66,787       384,025
Palantir Technologies, Inc. , Cl. D*,@,(a) 8,701       50,031
            434,056
TOTAL PREFERRED STOCKS            
(Cost $1,486,719)           1,119,239
RIGHTS—0.8%   SHARES       VALUE
BIOTECHNOLOGY—0.8%            
Tolero CDR*,@,(a),(c) 590,059       1,687,722
(Cost $315,501)           1,687,722
REAL ESTATE INVESTMENT TRUST—2.1%   SHARES       VALUE
SPECIALIZED—2.1%            
CyrusOne, Inc. 33,305       1,921,365
SBA Communications Corp. , Cl. A* 12,205       2,129,773
            4,051,138
TOTAL REAL ESTATE INVESTMENT TRUST            
(Cost $3,400,009)           4,051,138
SPECIAL PURPOSE VEHICLE—0.2%   SHARES       VALUE
CONSUMER FINANCE—0.2%            
JS Kred SPV I, LLC. *,@,(a) 314,956       380,215
(Cost $314,956)           380,215
Total Investments            
(Cost $162,069,415) 97.0 % $ 187,313,924
Affiliated Securities (Cost $988,245)           685,183
Unaffiliated Securities (Cost $161,081,170)           186,628,741
Other Assets in Excess of Liabilities 3.0 %     5,730,571
NET ASSETS 100.0 % $ 193,044,495

 

- 16 -

 

THE ALGER FUNDS | ALGER MID CAP GROWTH FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

# American Depositary Receipts.
(a) Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the
Board.
(b) Deemed an affiliate of the Alger fund complex during the year for purposes of Section 2(a)(3) of the Investment Company Act of
1940. See Affiliated Securities Note 5.
(c) Contingent Deferred Rights.
* Non-income producing security.
@ Restricted security - Investment in security not registered under the Securities Act of 1933. The investment is deemed to not be liquid
and may be sold only to qualified buyers.

        % of net assets       % of net assets  
  Acquisition   Acquisition (Acquisition     Market as of  
Security Date(s)   Cost Date)     Value 1/31/2018  
JS Kred SPV I, LLC. 06/26/15 $ 314,956 0.15 % $ 380,215 0.20 %
Palantir Technologies, Inc. , Cl. A 10/07/14   106,559 0.05 %   94,162 0.05 %
Palantir Technologies, Inc. , Cl. B 10/07/14   441,023 0.22 %   384,025 0.20 %
Palantir Technologies, Inc. , Cl. D 10/14/14   57,451 0.03 %   50,031 0.03 %
Prosetta Biosciences, Inc. , Series D 02/06/15   988,245 0.50 %   685,183 0.35 %
Tolero CDR 02/06/17   315,501 0.19 %   1,687,722 0.87 %
Total           $ 3,281,338 1.70 %
                   
See Notes to Financial Statements.                

 

- 17 -

 

THE ALGER FUNDS | ALGER SMID CAP FOCUS FUND
Schedule of Investments January 31, 2018 (Unaudited)

COMMON STOCKS—95.3%   SHARES   VALUE
AEROSPACE & DEFENSE—2.8%        
HEICO Corp. 77,960 $ 6,261,747
AIR FREIGHT & LOGISTICS—4.8%        
XPO Logistics, Inc. * 113,865   10,753,411
APPAREL ACCESSORIES & LUXURY GOODS—3.3%        
Canada Goose Holdings, Inc. * 205,364   7,380,782
APPLICATION SOFTWARE—16.1%        
Ebix, Inc. 110,271   9,053,249
Everbridge, Inc. * 197,330   6,369,813
Globant SA* 76,034   3,454,985
HubSpot, Inc. * 38,101   3,697,702
Paylocity Holding Corp. * 158,257   8,275,259
RealPage, Inc. * 18,191   905,002
The Ultimate Software Group, Inc. * 20,751   4,832,700
        36,588,710
ASSET MANAGEMENT & CUSTODY BANKS—0.7%        
Financial Engines, Inc. 5,985   170,273
Virtus Investment Partners, Inc. 10,300   1,318,400
        1,488,673
BIOTECHNOLOGY—8.4%        
ACADIA Pharmaceuticals, Inc. * 146,447   4,380,230
Acorda Therapeutics, Inc. 65,108   1,689,553
Portola Pharmaceuticals, Inc. * 132,812   6,814,584
Puma Biotechnology, Inc. * 46,244   3,091,411
Ultragenyx Pharmaceutical, Inc. * 59,070   3,151,384
        19,127,162
CONSUMER ELECTRONICS—0.2%        
GoPro, Inc. , Cl. A* 63,394   346,765
EDUCATION SERVICES—4.0%        
Chegg, Inc. * 529,701   9,174,421
GENERAL MERCHANDISE STORES—2.1%        
Ollie's Bargain Outlet Holdings, Inc. * 85,128   4,728,860
HEALTH CARE DISTRIBUTORS—0.2%        
PetIQ, Inc. , Cl. A* 18,240   437,760
HEALTH CARE EQUIPMENT—4.0%        
Insulet Corp. * 119,090   9,113,958
HEALTH CARE FACILITIES—1.5%        
US Physical Therapy, Inc. 43,979   3,340,205
HEALTH CARE SERVICES—1.5%        
Diplomat Pharmacy, Inc. * 125,005   3,373,885
HEALTH CARE TECHNOLOGY—1.6%        
Cotiviti Holdings, Inc. * 100,394   3,513,790
HUMAN RESOURCE & EMPLOYMENT SERVICES—2.7%      
WageWorks, Inc. * 102,587   6,211,643
INDUSTRIAL MACHINERY—3.7%        
Proto Labs, Inc. * 6,738   736,800

 

- 18 -

 

THE ALGER FUNDS | ALGER SMID CAP FOCUS FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

COMMON STOCKS—95.3% (CONT. )   SHARES     VALUE
INDUSTRIAL MACHINERY—3.7% (CONT. )          
The Middleby Corp. * 56,299   $ 7,671,302
          8,408,102
INTERNET & DIRECT MARKETING RETAIL—4.7%          
Wayfair, Inc. , Cl. A* 115,446     10,622,187
INTERNET SOFTWARE & SERVICES—10.3%          
2U, Inc. * 35,560     2,641,041
CommerceHub, Inc. , Series A* 81,290     1,643,684
GTT Communications, Inc. * 148,923     6,872,796
Palantir Technologies, Inc. , Cl. A*,@,(a) 81,310     467,533
SPS Commerce, Inc. * 3,425     180,155
Stamps. com, Inc. * 41,744     8,509,514
The Trade Desk, Inc. , Cl. A* 61,746     2,993,446
          23,308,169
IT CONSULTING & OTHER SERVICES—2.3%          
EPAM Systems, Inc. * 43,691     5,132,819
LEISURE FACILITIES—2.1%          
Planet Fitness, Inc. , Cl. A* 141,443     4,775,116
OIL & GAS EQUIPMENT & SERVICES—1.0%          
Solaris Oilfield Infrastructure, Inc. , Cl. A* 121,322     2,289,346
PHARMACEUTICALS—0.5%          
Aerie Pharmaceuticals, Inc. * 21,101     1,157,390
REAL ESTATE SERVICES—4.4%          
FirstService Corp. 143,209     9,524,831
Redfin Corp. 23,218     471,325
          9,996,156
REGIONAL BANKS—4.8%          
Independent Bank Group, Inc. 89,590     6,428,082
Signature Bank* 29,232     4,501,728
          10,929,810
RESTAURANTS—0.2%          
Chuy's Holdings, Inc. * 14,148     374,922
SEMICONDUCTORS—0.6%          
Impinj, Inc. * 43,324     969,158
MACOM Technology Solutions Holdings, Inc. * 10,381     322,849
          1,292,007
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—0.8%      
Electronics For Imaging, Inc. * 62,725     1,834,079
THRIFTS & MORTGAGE FINANCE—2.9%          
BofI Holding, Inc. * 179,645     6,461,831
TRADING COMPANIES & DISTRIBUTORS—3.1%          
H&E Equipment Services, Inc. 58,624     2,308,613
SiteOne Landscape Supply, Inc. * 62,505     4,760,381
          7,068,994
TOTAL COMMON STOCKS          
(Cost $163,256,044)     215,492,700

 

- 19 -

 

THE ALGER FUNDS | ALGER SMID CAP FOCUS FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

PREFERRED STOCKS—1.6%   SHARES     VALUE
BIOTECHNOLOGY—0.3%          
Prosetta Biosciences, Inc. , Series D*,@,(a),(b) 231,474   $ 722,199
PHARMACEUTICALS—1.3%          
Intarcia Therapeutics, Inc. , Series DD*,@,(a) 49,317     2,832,275
TOTAL PREFERRED STOCKS          
(Cost $2,639,011)         3,554,474
RIGHTS—0.0%   SHARES     VALUE
BIOTECHNOLOGY—0.0%          
Dyax Corp*,@,(a) 37,550     106,642
(Cost $0)         106,642
Total Investments          
(Cost $165,895,055) 96.9 % $                                                    219,153,816
Affiliated Securities (Cost $1,041,633)         722,199
Unaffiliated Securities (Cost $164,853,422)         218,431,617
Other Assets in Excess of Liabilities 3.1 %   7,015,332
NET ASSETS 100.0 % $                                                    226,169,148

 

(a) Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established
by the Board.
(b) Deemed an affiliate of the Alger fund complex during the year for purposes of Section 2(a)(3) of the Investment Company
Act of 1940. See Affiliated Securities Note 5.
* Non-income producing security.
@ Restricted security - Investment in security not registered under the Securities Act of 1933. The investment is deemed to not be
liquid and may be sold only to qualified buyers.

        % of net assets       % of net assets  
  Acquisition   Acquisition (Acquisition     Market as of  
Security Date(s)   Cost Date)     Value 1/31/2018  
Dyax Corp. Rights 05/07/15 $ 0 0.00 % $ 45,156 0.02 %
Dyax Corp. Rights 05/15/15   0 0.00 %   1,704 0.00 %
Dyax Corp. Rights 06/18/15   0 0.00 %   40,470 0.02 %
Dyax Corp. Rights 06/26/15   0 0.00 %   19,312 0.01 %
Intarcia Therapeutics, Inc. , Series                  
DD 03/27/14   1,597,378 0.14 %   2,832,275 1.25 %
Palantir Technologies, Inc. , Cl. A 10/07/14   529,084 0.05 %   467,533 0.21 %
Prosetta Biosciences, Inc. , Series D 02/06/15   1,041,633 0.10 %   722,199 0.32 %
Total           $ 4,128,649 1.83 %
                   
See Notes to Financial Statements.                  

 

- 20 -

 

THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND
Schedule of Investments January 31, 2018 (Unaudited)

COMMON STOCKS—97.2%   SHARES   VALUE
AEROSPACE & DEFENSE—1.1%        
Hexcel Corp. 20,837 $ 1,424,209
APPAREL ACCESSORIES & LUXURY GOODS—0.9%        
Canada Goose Holdings, Inc. * 31,421   1,129,271
APPAREL RETAIL—0.4%        
Burlington Stores, Inc. * 4,748   577,879
APPLICATION SOFTWARE—13.7%        
ACI Worldwide, Inc. * 88,218   2,067,830
Blackbaud, Inc. 35,561   3,407,455
Ellie Mae, Inc. * 11,327   1,059,074
Everbridge, Inc. * 23,550   760,194
Guidewire Software, Inc. * 22,749   1,807,408
HubSpot, Inc. * 18,640   1,809,012
Manhattan Associates, Inc. * 37,532   1,982,440
Paycom Software, Inc. * 13,274   1,216,429
Tyler Technologies, Inc. * 18,782   3,784,761
        17,894,603
ASSET MANAGEMENT & CUSTODY BANKS—1.8%        
WisdomTree Investments, Inc. 208,622   2,417,929
BIOTECHNOLOGY—4.2%        
ACADIA Pharmaceuticals, Inc. * 38,212   1,142,921
Bluebird Bio, Inc. * 3,666   751,164
CareDx, Inc. * 106,483   638,898
Clovis Oncology, Inc. * 7,960   481,580
Exact Sciences Corp. * 18,368   913,073
Halozyme Therapeutics, Inc. * 44,380   829,019
Sarepta Therapeutics, Inc. * 11,902   780,057
        5,536,712
BREWERS—0.5%        
Craft Brew Alliance, Inc. * 36,839   712,835
COMMUNICATIONS EQUIPMENT—0.6%        
Lumentum Holdings, Inc. * 16,503   764,089
CONSUMER FINANCE—1.2%        
LendingClub Corp. * 430,852   1,576,918
ELECTRONIC COMPONENTS—2.1%        
Dolby Laboratories, Inc. , Cl. A 24,049   1,547,313
Universal Display Corp. 7,332   1,168,721
        2,716,034
ELECTRONIC EQUIPMENT & INSTRUMENTS—5.0%        
Cognex Corp. 73,334   4,573,842
FLIR Systems, Inc. 39,669   2,031,449
        6,605,291
FINANCIAL EXCHANGES & DATA—0.5%        
MarketAxess Holdings, Inc. 3,640   714,204
GENERAL MERCHANDISE STORES—0.5%        
Ollie's Bargain Outlet Holdings, Inc. * 11,700   649,935

 

- 21 -

 

THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

COMMON STOCKS—97.2% (CONT. )   SHARES   VALUE
HEALTH CARE EQUIPMENT—14.1%        
Abaxis, Inc. 39,181 $ 2,807,318
ABIOMED, Inc. * 17,281   4,061,035
Cantel Medical Corp. 41,645   4,619,680
Cardiovascular Systems, Inc. * 20,614   509,372
DexCom, Inc. * 14,711   856,180
Inogen, Inc. * 20,917   2,548,527
Insulet Corp. * 39,588   3,029,670
        18,431,782
HEALTH CARE SUPPLIES—7.4%        
Neogen Corp. 63,800   3,766,114
OraSure Technologies, Inc. * 64,747   1,408,895
Quidel Corp. * 99,884   4,572,689
        9,747,698
HEALTH CARE TECHNOLOGY—6.9%        
Medidata Solutions, Inc. * 52,952   3,606,561
Veeva Systems, Inc. , Cl. A* 50,706   3,187,379
Vocera Communications, Inc. * 77,846   2,280,888
        9,074,828
HOME ENTERTAINMENT SOFTWARE—3.5%        
Take-Two Interactive Software, Inc. * 35,929   4,551,126
HUMAN RESOURCE & EMPLOYMENT SERVICES—1.9%      
WageWorks, Inc. * 41,522   2,514,157
INDUSTRIAL MACHINERY—3.2%        
DMC Global, Inc. 24,012   549,875
Sun Hydraulics Corp. 58,999   3,662,658
        4,212,533
INTERNET & DIRECT MARKETING RETAIL—0.3%        
Despegar. com Corp. * 11,057   336,686
INTERNET SOFTWARE & SERVICES—4.2%        
Apptio, Inc. , Cl. A* 26,327   672,655
Cornerstone OnDemand, Inc. * 14,291   587,789
NIC, Inc. 46,978   779,835
Q2 Holdings, Inc. * 31,598   1,338,175
Shopify, Inc. , Cl. A* 10,743   1,374,245
SPS Commerce, Inc. * 14,254   749,761
        5,502,460
IT CONSULTING & OTHER SERVICES—1.4%        
InterXion Holding NV* 29,099   1,825,962
LEISURE FACILITIES—1.2%        
Planet Fitness, Inc. , Cl. A* 45,969   1,551,913
LIFE SCIENCES TOOLS & SERVICES—4.0%        
Bio-Techne Corp. 24,924   3,496,588
PRA Health Sciences, Inc. * 18,551   1,689,254
        5,185,842
MANAGED HEALTH CARE—0.8%        
HealthEquity, Inc. * 20,684   1,047,024

 

- 22 -

 

THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

COMMON STOCKS—97.2% (CONT. )   SHARES     VALUE
MOVIES & ENTERTAINMENT—3.5%          
Lions Gate Entertainment Corp. , Cl. A* 56,847   $ 1,923,702
Lions Gate Entertainment Corp. , Cl. B 59,898     1,916,736
Live Nation Entertainment, Inc. * 17,062     768,814
          4,609,252
OIL & GAS EQUIPMENT & SERVICES—0.6%          
RPC, Inc. 38,037     768,347
OIL & GAS EXPLORATION & PRODUCTION—0.7%          
Parsley Energy, Inc. , Cl. A* 39,696     936,826
PERSONAL PRODUCTS—0.7%          
elf Beauty, Inc. * 43,718     898,842
PHARMACEUTICALS—1.2%          
Aerie Pharmaceuticals, Inc. * 27,545     1,510,843
RESTAURANTS—2.2%          
Shake Shack, Inc. , Cl. A* 21,823     953,883
Wingstop, Inc. 39,785     1,924,003
          2,877,886
SEMICONDUCTORS—2.3%          
Cavium, Inc. * 15,341     1,361,974
Microsemi Corp. * 27,577     1,703,983
          3,065,957
SPECIALTY CHEMICALS—1.7%          
Balchem Corp. 27,780     2,194,620
SPECIALTY STORES—0.5%          
Five Below, Inc. * 10,577     686,765
SYSTEMS SOFTWARE—2.4%          
Proofpoint, Inc. * 30,509     3,112,528
TOTAL COMMON STOCKS          
(Cost $81,174,453)       127,363,786
PREFERRED STOCKS—0.1%   SHARES     VALUE
BIOTECHNOLOGY—0.1%          
Prosetta Biosciences, Inc. , Series D*,@,(a),(b) 50,688     158,147
(Cost $228,096)         158,147
RIGHTS—0.4%   SHARES     VALUE
BIOTECHNOLOGY—0.4%          
Dyax Corp. *,@,(a) 9,700     27,548
Neuralstem, Inc. Strike Price: 47.61, 1/8/19*,(a) 5,997     –
Tolero CDR*,@,(a),(c) 174,782     499,922
          527,470
TOTAL RIGHTS          
(Cost $94,483)         527,470
REAL ESTATE INVESTMENT TRUST—0.9%   SHARES     VALUE
SPECIALIZED—0.9%          
CyrusOne, Inc. 19,702     1,136,608
(Cost $661,200)       1,136,608

 

- 23 -

 

THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

SPECIAL PURPOSE VEHICLE—0.3%   SHARES     VALUE
CONSUMER FINANCE—0.3%          
JS Kred SPV I, LLC. *,@,(a) 290,078   $ 350,182
(Cost $290,078)         350,182
Total Investments          
(Cost $82,448,310) 98.9 % $                                                  129,536,193
Affiliated Securities (Cost $228,096)         158,147
Unaffiliated Securities (Cost $82,220,214)         129,378,046
Other Assets in Excess of Liabilities 1.1 %   1,485,749
NET ASSETS 100.0 % $                                                  131,021,942

 

(a) Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the
Board.
(b) Deemed an affiliate of the Alger fund complex during the year for purposes of Section 2(a)(3) of the Investment Company Act of
1940. See Affiliated Securities Note 11.
(c) Contingent Deferred Rights.
* Non-income producing security.
@ Restricted security - Investment in security not registered under the Securities Act of 1933. The investment is deemed to not be liquid
and may be sold only to qualified buyers.

        % of net assets       % of net assets  
  Acquisition   Acquisition (Acquisition     Market as of  
Security Date(s)   Cost Date)     Value 1/31/2018  
Dyax Corp. Rights 05/01/15 $ 0 0.00 % $ 17,324 0.01 %
Dyax Corp. Rights 08/14/15   0 0.00 %   10,224 0.01 %
JS Kred SPV I, LLC. 06/26/15   290,078 0.15 %   350,182 0.27 %
Prosetta Biosciences, Inc. , Series D 02/06/15   228,096 0.10 %   158,147 0.12 %
Tolero CDR 02/06/17   94,483 0.08 %   499,922 0.38 %
Total           $ 1,035,799 0.79 %
                   
 
 
See Notes to Financial Statements.                

 

- 24 -

 

THE ALGER FUNDS | ALGER SMALL CAP FOCUS FUND
Schedule of Investments January 31, 2018 (Unaudited)

COMMON STOCKS—98.9%   SHARES     VALUE
AEROSPACE & DEFENSE—0.9%          
Mercury Systems, Inc. * 128,819   $ 6,185,888
APPAREL ACCESSORIES & LUXURY GOODS—2.4%          
Canada Goose Holdings, Inc. * 479,735     17,241,676
APPLICATION SOFTWARE—20.6%          
ACI Worldwide, Inc. * 641,818     15,044,214
ANSYS, Inc. * 85,884     13,883,149
Blackbaud, Inc. 161,609     15,485,374
Ellie Mae, Inc. * 147,245     13,767,408
Everbridge, Inc. * 389,612     12,576,675
Guidewire Software, Inc. * 251,581     19,988,110
Manhattan Associates, Inc. * 153,118     8,087,693
Paycom Software, Inc. * 179,203     16,422,163
PROS Holdings, Inc. * 343,715     9,981,484
Tyler Technologies, Inc. * 100,725     20,297,095
        145,533,365
ASSET MANAGEMENT & CUSTODY BANKS—1.6%          
WisdomTree Investments, Inc. 954,330     11,060,685
BIOTECHNOLOGY—2.5%          
CareDx, Inc. * 1,346,282     8,077,692
Exact Sciences Corp. * 205,771     10,228,876
          18,306,568
ELECTRONIC COMPONENTS—1.8%          
Universal Display Corp. 77,569     12,364,499
ELECTRONIC EQUIPMENT & INSTRUMENTS—3.0%          
Cognex Corp. 334,352     20,853,534
FINANCIAL EXCHANGES & DATA—1.6%          
MarketAxess Holdings, Inc. 58,110     11,401,763
GENERAL MERCHANDISE STORES—1.6%          
Ollie's Bargain Outlet Holdings, Inc. * 199,833     11,100,723
HEALTH CARE EQUIPMENT—18.3%          
Abaxis, Inc. 167,707     12,016,206
ABIOMED, Inc. * 102,269     24,033,215
Cantel Medical Corp. 206,481     22,904,937
Heska Corp. * 128,196     9,992,878
Inogen, Inc. * 150,256     18,307,191
Insulet Corp. * 348,556     26,674,991
Tactile Systems Technology, Inc. * 477,001     15,039,842
        128,969,260
HEALTH CARE SUPPLIES—8.2%          
Neogen Corp. 290,570     17,152,347
OraSure Technologies, Inc. * 796,189     17,325,072
Quidel Corp. * 507,392     23,228,406
          57,705,825
HEALTH CARE TECHNOLOGY—8.2%          
Medidata Solutions, Inc. * 217,502     14,814,061
Veeva Systems, Inc. , Cl. A* 438,024     27,534,189

 

- 25 -

 

THE ALGER FUNDS | ALGER SMALL CAP FOCUS FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

COMMON STOCKS—98.9% (CONT. )   SHARES       VALUE
HEALTH CARE TECHNOLOGY—8.2% (CONT. )            
Vocera Communications, Inc. * 520,336     $ 15,245,845
            57,594,095
HUMAN RESOURCE & EMPLOYMENT SERVICES—2.4%          
WageWorks, Inc. * 275,751       16,696,723
INDUSTRIAL MACHINERY—4.9%            
DMC Global, Inc. 139,152       3,186,581
Proto Labs, Inc. * 141,092       15,428,410
Sun Hydraulics Corp. 257,379       15,978,088
            34,593,079
INTERNET SOFTWARE & SERVICES—8.9%            
Apptio, Inc. , Cl. A* 287,790       7,353,034
Cornerstone OnDemand, Inc. * 117,015       4,812,827
NIC, Inc. 386,399       6,414,224
Shopify, Inc. , Cl. A* 118,448       15,151,868
SPS Commerce, Inc. * 106,599       5,607,107
Stamps. com, Inc. * 116,449       23,738,129
            63,077,189
LIFE SCIENCES TOOLS & SERVICES—1.8%            
Bio-Techne Corp. 91,837       12,883,813
MANAGED HEALTH CARE—1.4%            
HealthEquity, Inc. * 198,315       10,038,705
PERSONAL PRODUCTS—1.1%            
elf Beauty, Inc. * 363,846       7,480,674
RESTAURANTS—2.2%            
Wingstop, Inc. 319,383       15,445,362
SPECIALTY CHEMICALS—1.5%            
Balchem Corp. 133,176       10,520,904
SPECIALTY STORES—1.7%            
Five Below, Inc. * 183,164       11,892,839
SYSTEMS SOFTWARE—2.3%            
Proofpoint, Inc. * 158,992       16,220,364
TOTAL COMMON STOCKS            
(Cost $543,233,595)         697,167,533
RIGHTS—0.0%   SHARES       VALUE
BIOTECHNOLOGY—0.0%            
Tolero CDR*,@,(a),(b) 11,905       34,051
(Cost $6,436)           34,051
Total Investments            
(Cost $543,240,031) 98.9 % $ 697,201,584
Unaffiliated Securities (Cost $543,240,031)           697,201,584
Other Assets in Excess of Liabilities 1.1 %     7,997,626
NET ASSETS 100.0 % $ 705,199,210

 

- 26 -

 

THE ALGER FUNDS | ALGER SMALL CAP FOCUS FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

(a) Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the
Board.
(b) Contingent Deferred Rights.
* Non-income producing security.
@ Restricted security - Investment in security not registered under the Securities Act of 1933. The investment is deemed to not be liquid
and may be sold only to qualified buyers.

        % of net assets       % of net assets  
  Acquisition   Acquisition (Acquisition     Market as of  
Security Date(s)   Cost Date)     Value 1/31/2018  
Tolero CDR 02/06/17 $ 6,436 0.00 % $ 34,051 0.00 %
 Total         $ 34,051 0.00 %
                   
See Notes to Financial Statements.                

 

- 27 -

 

THE ALGER FUNDS | ALGER HEALTH SCIENCES FUND
Schedule of Investments January 31, 2018 (Unaudited)

COMMON STOCKS—92.6%   SHARES   VALUE
BIOTECHNOLOGY—41.6%        
AbbVie, Inc. 86,000 $ 9,650,920
ACADIA Pharmaceuticals, Inc. * 19,000   568,290
Adverum Biotechnologies, Inc. * 5,000   36,500
Agios Pharmaceuticals, Inc. * 5,000   393,800
Alexion Pharmaceuticals, Inc. * 20,000   2,386,400
Amicus Therapeutics, Inc. * 108,000   1,751,760
AnaptysBio, Inc. * 4,500   474,255
Avexis, Inc. * 7,500   927,975
BeiGene Ltd. #* 8,000   1,086,000
Biogen, Inc. 13,000   4,521,530
BioMarin Pharmaceutical, Inc. * 50,000   4,511,500
Bluebird Bio, Inc. * 22,000   4,507,800
Calithera Biosciences, Inc. * 10,000   80,000
Clovis Oncology, Inc. * 31,247   1,890,444
Emmaus Life Sciences, Inc. *,@,(a) 479,063   2,912,703
Enanta Pharmaceuticals, Inc. * 2,000   169,900
Epizyme, Inc. * 20,000   323,000
Exact Sciences Corp. * 39,000   1,938,690
Exelixis, Inc. * 10,000   303,100
Five Prime Therapeutics, Inc. * 14,000   280,000
Genmab A/S* 7,500   1,373,966
Gilead Sciences, Inc. 15,000   1,257,000
Global Blood Therapeutics, Inc. * 10,000   579,000
GlycoMimetics, Inc. * 7,000   157,430
Halozyme Therapeutics, Inc. * 158,000   2,951,440
Immunomedics, Inc. * 58,000   966,860
Incyte Corp. * 18,000   1,625,220
Madrigal Pharmaceuticals, Inc. * 8,000   1,187,360
Neurocrine Biosciences, Inc. * 21,500   1,837,605
Ra Pharmaceuticals, Inc. * 14,000   103,040
Radius Health, Inc. * 18,000   677,880
Regeneron Pharmaceuticals, Inc. * 2,500   916,625
Sage Therapeutics, Inc. * 11,000   2,087,800
Sangamo Therapeutics, Inc. * 27,000   562,950
Sarepta Therapeutics, Inc. * 70,000   4,587,800
Spark Therapeutics, Inc. * 20,000   1,121,000
TESARO, Inc. * 20,000   1,349,200
Vertex Pharmaceuticals, Inc. * 41,000   6,841,670
Zealand Pharma A/S#* 40,000   674,800
        69,573,213
HEALTH CARE EQUIPMENT—19.6%        
Abaxis, Inc. 7,000   501,550
Abbott Laboratories 20,000   1,243,200
ABIOMED, Inc. * 27,500   6,462,500
AxoGen, Inc. * 12,000   333,600
Baxter International, Inc. 31,000   2,232,930
DexCom, Inc. * 27,500   1,600,500
Edwards Lifesciences Corp. * 12,000   1,518,960

 

- 28 -

 

THE ALGER FUNDS | ALGER HEALTH SCIENCES FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

COMMON STOCKS—92.6% (CONT. )   SHARES   VALUE
HEALTH CARE EQUIPMENT—19.6% (CONT. )        
IDEXX Laboratories, Inc. * 14,500 $ 2,712,080
Insulet Corp. * 54,000   4,132,620
Intuitive Surgical, Inc. 9,500   4,100,865
Masimo Corp. * 17,000   1,602,080
Mazor Robotics Ltd. #* 5,000   328,550
Obalon Therapeutics, Inc. * 46,795   191,860
Stryker Corp. 19,000   3,123,220
Teleflex, Inc. 5,000   1,388,750
Zimmer Biomet Holdings, Inc. 11,000   1,398,320
        32,871,585
HEALTH CARE FACILITIES—0.7%        
HCA Healthcare, Inc. 11,000   1,112,760
HEALTH CARE SERVICES—0.3%        
DaVita, Inc. * 6,500   507,260
HEALTH CARE SUPPLIES—2.3%        
Align Technology, Inc. * 14,500   3,799,000
HEALTH CARE TECHNOLOGY—0.4%        
Teladoc, Inc. * 19,000   710,600
LIFE SCIENCES TOOLS & SERVICES—5.7%        
Agilent Technologies, Inc. 33,000   2,423,190
Illumina, Inc. * 19,000   4,420,160
Mettler-Toledo International, Inc. * 3,300   2,228,358
PRA Health Sciences, Inc. * 5,000   455,300
        9,527,008
MANAGED HEALTH CARE—9.6%        
Centene Corp. * 5,000   536,200
Cigna Corp. 8,000   1,666,800
Humana, Inc. 8,000   2,254,640
UnitedHealth Group, Inc. 46,000   10,891,880
WellCare Health Plans, Inc. * 3,500   736,330
        16,085,850
PHARMACEUTICALS—12.4%        
Aerie Pharmaceuticals, Inc. * 39,000   2,139,150
Allergan PLC. 7,500   1,351,950
Assembly Biosciences, Inc. * 7,000   330,260
AstraZeneca PLC. # 27,000   946,620
Bristol-Myers Squibb Co. 77,000   4,820,200
Dermira, Inc. * 5,000   142,600
GW Pharmaceuticals PLC. #* 15,617   2,157,176
Intersect ENT, Inc. * 3,000   112,050
Johnson & Johnson 16,000   2,211,040
Mylan NV* 28,500   1,221,225
Novo Nordisk A/S# 44,000   2,442,000
Revance Therapeutics, Inc. * 26,500   855,950
Zoetis, Inc. , Cl. A 19,000   1,457,870

 

- 29 -

 

THE ALGER FUNDS | ALGER HEALTH SCIENCES FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

COMMON STOCKS—92.6% (CONT. )   SHARES       VALUE
PHARMACEUTICALS—12.4% (CONT. )            
Zogenix, Inc. * 15,000     $ 545,250
            20,733,341
TOTAL COMMON STOCKS            
(Cost $112,834,373)         154,920,617
PREFERRED STOCKS—1.9%   SHARES       VALUE
BIOTECHNOLOGY—1.7%            
Prosetta Biosciences, Inc. , Series D*,@,(a),(b) 897,366       2,799,782
PHARMACEUTICALS—0.2%            
Intarcia Therapeutics, Inc. , Series DD*,@,(a) 7,546       433,366
TOTAL PREFERRED STOCKS            
(Cost $4,282,562)           3,233,148
RIGHTS—4.0%   SHARES       VALUE
BIOTECHNOLOGY—4.0%            
Dyax Corp.*,@,(a) 21,800       61,912
Emmaus Life Sciences, Inc. , 9/11/18*,@,(a) 320,000       950,400
Neuralstem, Inc. , Strike Price: 47.61, 1/8/19*,(a) 26,472       –
Tolero CDR*,@,(a),(c) 1,956,996       5,597,517
            6,609,829
TOTAL RIGHTS            
(Cost $1,044,370)           6,609,829
Total Investments            
(Cost $118,161,305) 98.5 % $ 164,763,594
Affiliated Securities (Cost $4,038,147)           2,799,782
Unaffiliated Securities (Cost $114,123,158)           161,963,812
Other Assets in Excess of Liabilities 1.5 %     2,502,160
NET ASSETS 100.0 % $ 167,265,754

 

# American Depositary Receipts.
(a) Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the
Board.
(b) Deemed an affiliate of the Alger fund complex during the year for the purpose of Section 2(a)(3) of the Investment Company Act of
1940, See Affiliated Securities Note 5.
(c) Contingent Deferred Rights.
* Non-income producing security.

- 30 -

 

THE ALGER FUNDS | ALGER HEALTH SCIENCES FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

@ Restricted security - Investment in security not registered under the Securities Act of 1933. The investment is deemed to not be liquid
and may be sold only to qualified buyers.

          % of net assets       % of net assets  
  Acquisition   Acquisition   (Acquisition     Market as of  
Security Date(s)   Cost   Date)     Value 1/31/2018  
Dyax Corp. Rights 04/01/15 $ 0   0.00 % $ 60,634 0.04 %
Dyax Corp. Rights 10/15/15   0   0.00 %   1,278 0.00 %
Emmaus Life Sciences, Inc. 06/06/14   556,721   0.28 %   967,103 0.58 %
Emmaus Life Sciences, Inc. 09/09/13   800,000   0.42 %   1,945,600 1.16 %
Emmaus Life Sciences, Inc. , Rights 09/09/13   0   0.00 %   950,400 0.57 %
Intarcia Therapeutics, Inc. , Series                    
DD 03/27/14   290,376   0.15 %   433,366 0.26 %
Prosetta Biosciences, Inc. , Series D 02/06/15   4,038,147   2.00 %   2,799,782 1.67 %
Tolero CDR 02/06/17   1,044,370   0.90 %   5,597,517 3.35 %
Total             $ 12,755,680 7.63 %
 
See Notes to Financial Statements.                  

 

- 31 -

 

THE ALGER FUNDS | ALGER GROWTH & INCOME FUND
Schedule of Investments January 31, 2018 (Unaudited)

COMMON STOCKS—92.3%   SHARES   VALUE
AEROSPACE & DEFENSE—3.7%        
General Dynamics Corp. 7,556 $ 1,681,059
The Boeing Co. 8,376   2,968,203
        4,649,262
AIR FREIGHT & LOGISTICS—0.4%        
United Parcel Service, Inc. , Cl. B 4,399   560,081
AIRPORT SERVICES—0.4%        
Macquarie Infrastructure Corp. 8,137   539,890
APPAREL ACCESSORIES & LUXURY GOODS—0.6%        
Tapestry, Inc. 16,537   777,900
APPAREL RETAIL—0.7%        
The Gap, Inc. 26,419   878,168
ASSET MANAGEMENT & CUSTODY BANKS—1.9%        
BlackRock, Inc. , Cl. A 4,284   2,406,751
AUTO PARTS & EQUIPMENT—0.7%        
Aptiv PLC. 8,803   835,229
BIOTECHNOLOGY—2.5%        
AbbVie, Inc. 13,736   1,541,454
Amgen, Inc. 4,100   762,805
Gilead Sciences, Inc. 9,700   812,860
        3,117,119
BREWERS—0.5%        
Molson Coors Brewing Co. , Cl. B 7,489   629,226
BUILDING PRODUCTS—1.0%        
Johnson Controls International PLC. 31,280   1,223,986
CABLE & SATELLITE—2.2%        
Comcast Corp. , Cl. A 66,582   2,831,732
COMMUNICATIONS EQUIPMENT—1.4%        
Cisco Systems, Inc. 43,199   1,794,486
CONSUMER ELECTRONICS—0.5%        
Garmin Ltd. 9,418   592,769
CONSUMER FINANCE—0.4%        
Discover Financial Services 6,501   518,780
DIVERSIFIED BANKS—7.2%        
Bank of America Corp. 71,198   2,278,336
JPMorgan Chase & Co. 42,602   4,927,773
Wells Fargo & Co. 28,454   1,871,704
        9,077,813
DIVERSIFIED CHEMICALS—1.0%        
DowDuPont, Inc. 17,320   1,309,046
DRUG RETAIL—1.0%        
CVS Health Corp. 15,600   1,227,564
ELECTRICAL COMPONENTS & EQUIPMENT—1.1%        
Eaton Corp. , PLC. 9,500   797,715

 

- 32 -

 

THE ALGER FUNDS | ALGER GROWTH & INCOME FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

COMMON STOCKS—92.3% (CONT. )   SHARES   VALUE
ELECTRICAL COMPONENTS & EQUIPMENT—1.1% (CONT. )    
Hubbell, Inc. , Cl. B 4,864 $ 661,261
        1,458,976
FINANCIAL EXCHANGES & DATA—1.7%        
CME Group, Inc. , Cl. A 14,143   2,170,668
HEALTH CARE EQUIPMENT—0.6%        
Medtronic PLC. 8,783   754,372
HOME IMPROVEMENT RETAIL—2.5%        
The Home Depot, Inc. 15,490   3,111,941
HOTELS RESORTS & CRUISE LINES—1.7%        
Carnival Corp. 13,500   966,735
Extended Stay America, Inc. 55,787   1,128,571
        2,095,306
HOUSEHOLD PRODUCTS—1.3%        
The Procter & Gamble Co. 18,860   1,628,372
HYPERMARKETS & SUPER CENTERS—1.0%        
Wal-Mart Stores, Inc. 12,141   1,294,231
INDUSTRIAL CONGLOMERATES—3.0%        
General Electric Co. 49,081   793,640
Honeywell International, Inc. 19,156   3,058,638
        3,852,278
INDUSTRIAL GASES—0.8%        
Air Products & Chemicals, Inc. 6,023   1,014,092
INTEGRATED OIL & GAS—3.1%        
Exxon Mobil Corp. 28,532   2,490,843
TOTAL SA# 24,162   1,402,846
        3,893,689
INTEGRATED TELECOMMUNICATION SERVICES—2.8%      
AT&T, Inc. 30,300   1,134,735
Verizon Communications, Inc. 45,395   2,454,508
        3,589,243
INTERNET & DIRECT MARKETING RETAIL—1.0%        
Amazon. com, Inc. * 912   1,323,212
INTERNET SOFTWARE & SERVICES—5.4%        
Alphabet, Inc. , Cl. A* 2,005   2,370,351
Alphabet, Inc. , Cl. C* 2,010   2,351,579
Facebook, Inc. , Cl. A* 11,268   2,105,877
        6,827,807
INVESTMENT BANKING & BROKERAGE—2.4%        
Morgan Stanley 54,020   3,054,831
LEISURE FACILITIES—0.6%        
Six Flags Entertainment Corp. 10,410   703,300
MANAGED HEALTH CARE—3.3%        
Aetna, Inc. 10,018   1,871,563
UnitedHealth Group, Inc. 9,760   2,310,973
        4,182,536

 

- 33 -

 

THE ALGER FUNDS | ALGER GROWTH & INCOME FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

COMMON STOCKS—92.3% (CONT. )   SHARES     VALUE
MULTI-LINE INSURANCE—0.8%          
The Hartford Financial Services Group, Inc. 16,900   $ 993,044
MULTI-UTILITIES—0.6%          
Sempra Energy 6,674     714,251
OIL & GAS EQUIPMENT & SERVICES—0.8%          
Schlumberger Ltd. 14,373     1,057,565
OIL & GAS EXPLORATION & PRODUCTION—0.8%          
ConocoPhillips 17,676     1,039,526
PACKAGED FOODS & MEATS—0.5%          
The Kraft Heinz Co. 8,600     674,154
PHARMACEUTICALS—7.8%          
Bristol-Myers Squibb Co. 28,880     1,807,888
Eli Lilly & Co. 20,500     1,669,725
GlaxoSmithKline PLC. # 21,339     800,426
Johnson & Johnson 20,000     2,763,800
Pfizer, Inc. 62,024     2,297,369
Roche Holding AG# 17,055     528,705
          9,867,913
RAILROADS—0.5%          
Union Pacific Corp. 4,509     601,951
RESTAURANTS—2.5%          
Darden Restaurants, Inc. 8,100     776,385
Dunkin' Brands Group, Inc. 10,654     688,781
McDonald's Corp. 10,118     1,731,595
          3,196,761
SEMICONDUCTOR EQUIPMENT—0.9%          
KLA-Tencor Corp. 10,895     1,196,271
SEMICONDUCTORS—4.1%          
Broadcom Ltd. 10,900     2,703,527
Intel Corp. 35,637     1,715,565
QUALCOMM, Inc. 12,100     825,825
          5,244,917
SOFT DRINKS—2.7%          
PepsiCo, Inc. 20,741     2,495,142
The Coca-Cola Co. 20,700     985,113
          3,480,255
SYSTEMS SOFTWARE—5.0%          
Microsoft Corp. 67,460     6,409,375
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—4.7%      
Apple, Inc. 31,623     5,294,639
Western Digital Corp. 7,324     651,689
          5,946,328
TOBACCO—2.2%          
Altria Group, Inc. 39,780     2,798,125
TOTAL COMMON STOCKS          
(Cost $63,759,761)     117,145,092

 

- 34 -

 

THE ALGER FUNDS | ALGER GROWTH & INCOME FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

CONVERTIBLE PREFERRED STOCKS—0.4%   SHARES     VALUE
PHARMACEUTICALS—0.4%          
Allergan PLC. , 5.50%, 3/1/18 770   $ 498,729
(Cost $770,000)         498,729
MASTER LIMITED PARTNERSHIP—1.9%   SHARES     VALUE
ASSET MANAGEMENT & CUSTODY BANKS—1.5%          
The Blackstone Group LP.(a) 53,190     1,944,095
OIL & GAS STORAGE & TRANSPORTATION—0.4%          
Cheniere Energy Partners LP. (a) 16,300     500,736
TOTAL MASTER LIMITED PARTNERSHIP          
(Cost $1,767,080)         2,444,831
REAL ESTATE INVESTMENT TRUST—2.9%   SHARES     VALUE
HEALTH CARE—0.5%          
Welltower, Inc. 11,100     665,667
MORTGAGE—0.7%          
Blackstone Mortgage Trust, Inc. , Cl. A 26,124     809,844
SPECIALIZED—1.7%          
Crown Castle International Corp. 11,857     1,337,114
Lamar Advertising Co. , Cl. A 10,909     785,448
          2,122,562
TOTAL REAL ESTATE INVESTMENT TRUST          
(Cost $2,952,689)         3,598,073
SHORT—TERM INVESTMENTS—1.2%   SHARES     VALUE
MONEY MARKET FUND—1.2%          
Invesco Government & Agency Portfolio 1,568,444     1,568,444
(Cost $1,568,444)         1,568,444
Total Investments          
(Cost $70,817,974) 98.7 % $                                                  125,255,169
Unaffiliated Securities (Cost $70,817,974)         125,255,169
Other Assets in Excess of Liabilities 1.3 %   1,649,421
NET ASSETS 100.0 % $                                                  126,904,590

 

# American Depositary Receipts.
(a) All or portion of the security is on loan.
* Non-income producing security.

See Notes to Financial Statements.

- 35 -

 

THE ALGER FUNDS | ALGER 25 FUND
Schedule of Investments January 31, 2018 (Unaudited)

COMMON STOCKS—90.9%   SHARES   VALUE
AEROSPACE & DEFENSE—3.0%        
HEICO Corp. 4,067 $ 326,661
APPLICATION SOFTWARE—9.6%        
Adobe Systems, Inc. * 1,398   279,265
Autodesk, Inc. * 3,051   352,757
salesforce. com, Inc. * 3,660   416,911
        1,048,933
CONSTRUCTION MACHINERY & HEAVY TRUCKS—3.0%      
WABCO Holdings, Inc. * 2,111   325,917
CONSTRUCTION MATERIALS—3.4%        
Vulcan Materials Co. 2,768   374,787
DATA PROCESSING & OUTSOURCED SERVICES—5.1%      
Visa, Inc. , Cl. A 4,472   555,557
DIVERSIFIED BANKS—4.0%        
Bank of America Corp. 13,414   429,248
DIVERSIFIED SUPPORT SERVICES—4.2%        
Cintas Corp. 2,684   452,120
FINANCIAL EXCHANGES & DATA—10.9%        
CME Group, Inc. , Cl. A 2,801   429,897
MarketAxess Holdings, Inc. 1,622   318,253
S&P Global, Inc. 2,416   437,537
        1,185,687
HOME ENTERTAINMENT SOFTWARE—1.7%        
Electronic Arts, Inc. * 1,425   180,918
INTERNET & DIRECT MARKETING RETAIL—8.3%        
Amazon. com, Inc. * 618   896,650
INTERNET SOFTWARE & SERVICES—15.2%        
Alphabet, Inc. , Cl. C* 544   636,447
Altaba, Inc. * 5,125   409,385
Facebook, Inc. , Cl. A* 3,256   608,514
        1,654,346
LEISURE FACILITIES—3.6%        
Vail Resorts, Inc. 1,805   394,501
MANAGED HEALTH CARE—4.1%        
UnitedHealth Group, Inc. 1,875   443,963
SEMICONDUCTOR EQUIPMENT—3.3%        
Applied Materials, Inc. 6,686   358,570
SEMICONDUCTORS—3.8%        
Broadcom Ltd. 1,667   413,466
SPECIALTY CHEMICALS—2.9%        
The Sherwin-Williams Co. 746   311,164
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—4.8%    
Apple, Inc. 3,107   520,205
TOTAL COMMON STOCKS        
(Cost $9,621,965)     9,872,693

 

- 36 -

 

THE ALGER FUNDS | ALGER 25 FUND
Schedule of Investments January 31, 2018 (Unaudited) (Continued)

REAL ESTATE INVESTMENT TRUST—7.9%   SHARES     VALUE
SPECIALIZED—7.9%          
Equinix, Inc. 1,053   $ 479,315
SBA Communications Corp. , Cl. A* 2,164     377,618
          856,933
TOTAL REAL ESTATE INVESTMENT TRUST          
(Cost $818,884)         856,933
Total Investments          
(Cost $10,440,849) 98.8 % $ 10,729,626
Unaffiliated Securities (Cost $10,440,849)         10,729,626
Other Assets in Excess of Liabilities 1.2 %   126,280
NET ASSETS 100.0 % $ 10,855,906
* Non-income producing security.          
 
See Notes to Financial Statements.          

 

- 37 -

 

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1 — General:
The Alger Funds (the “Trust”) is a diversified, 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 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 nine funds — Alger Capital Appreciation Fund, Alger International
Growth Fund, Alger Mid Cap Growth Fund, Alger SMid Cap Focus Fund, Alger Small Cap
Growth Fund, Alger Small Cap Focus Fund, Alger Health Sciences Fund, Alger Growth &
Income Fund and Alger 25 Fund (collectively, the “Funds” or individually, each a “Fund”).
Alger Capital Appreciation Fund, Alger International Growth Fund, Alger Mid Cap Growth
Fund, Alger SMid Cap Focus Fund, Alger Small Cap Growth Fund, Alger Small Cap Focus
Fund, Alger Health Sciences Fund and Alger 25 Fund normally invest primarily in equity
securities and each has an investment objective of long-term capital appreciation. Alger
Growth & Income Fund also normally invests primarily in equity securities but has an
investment objective of both capital appreciation and current income.

Each Fund offers one or more of the following share classes: Class A, B, C, I, P, Y and Z.
Class A shares are generally subject to an initial sales charge while Class B and C shares are
generally subject to a deferred sales charge. Class B shares will automatically convert to Class
A shares eight years after the end of the calendar month in which the order to purchase
was accepted. The conversion is completed without the imposition of any sales charges or
other fees. Class I, P, Y and Z shares are sold to institutional investors without an initial or
deferred sales charge. Each class has identical rights to assets and earnings, except that each
share class bears the pro rata allocation of the Fund’s expense other than a class expense
(not including advisory or custodial fees or other expenses related to the management of
the Fund’s assets) to a share class.

Alger 25 Fund launched on December 28, 2017.

NOTE 2 — Significant Accounting Policies:
(a) Investment Valuation: The Funds value their financial instruments (including escrow
receivable) at fair value using independent dealers or pricing services under policies approved
by the Trust’s Board of Trustees (“Board”). Investments 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 Standard Time).
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 as reported by an independent pricing service on the primary market or exchange on
which they are traded. In the absence of quoted sales, such securities are 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
- 38 -

 

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

the basis of 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 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.

Securities for which market quotations are not readily available (including escrow receivable)
are valued at fair value, as determined in good faith pursuant to procedures established by
the Board.

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 investment manager, pursuant to policies established by the Board, 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
Funds are open.

Financial Accounting Standards Board 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 – signifÿÿÿÿicant other observable inputs (including quoted prices for similar
investments, 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

- 39 -

 

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

to measure fair value. The income approach converts future 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 values may significantly differ from
the values if there was an active market.

Valuation processes are determined by a Valuation Committee (“Committee”) established
by the Board and comprised of representatives of the Trust’s investment adviser. The
Committee reports its fair valuation determinations to the Board which is responsible for
approving valuation policy and procedures.

While the Committee meets on an as-needed basis, the Committee generally meets
quarterly to review and evaluate the effectiveness of the procedures for making fair value
determinations. The Committee considers, among other things, the results of quarterly back
testing of the fair value model for foreign securities, pricing comparisons between primary
and secondary price sources, the outcome of price challenges put to the Funds’ pricing
vendor, and variances between transactional prices and previous mark-to-markets.

The Funds will record a change to a security’s fair value level if new inputs are available
or it becomes evident that inputs previously considered for leveling have changed or are
no longer relevant. Transfers between Levels 1, 2 and 3 are recognized at the end of the
reporting period.

(b) Cash and Cash Equivalents: Cash and cash equivalents include U.S. dollars, foreign cash
and overnight time deposits.
NOTE 3 — Fair Value Measurements:
The following is a summary of the inputs used as of January 31, 2018 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.

- 40 -

 

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

Alger Capital Appreciation                            
Fund TOTAL FUND   LEVEL 1   LEVEL 2       LEVEL 3
COMMON STOCKS                            
Consumer Discretionary $ 561,846,654 $ 551,942,551 $ 9,904,103   —
Consumer Staples   44,580,435   44,580,435   —     —
Energy   51,999,325   51,999,325   —     —
Financials   232,731,935   232,731,935   —     —
Health Care   353,282,183   353,282,183   —     —
Industrials   257,557,906   257,557,906   —     —
Information Technology   1,263,263,983   1,262,382,612   —      $ 881,371
Materials   140,155,258   140,155,258   —     —
Telecommunication Services   7,581,806   7,581,806   —     —
TOTAL COMMON STOCKS $ 2,912,999,485 $ 2,902,214,011   9,904,103     $ 881,371
MASTER LIMITED PARTNERSHIP                        
Financials   23,410,311   23,410,311   —     —
PREFERRED STOCKS                            
Health Care   4,403,847   —   —        4,403,847
Information Technology   4,062,807   —   —        4,062,807
TOTAL PREFERRED                            
STOCKS $ 8,466,654 —   —      $ 8,466,654
REAL ESTATE INVESTMENT TRUST                        
Real Estate   76,407,588   76,407,588   —     —
TOTAL INVESTMENTS IN                            
SECURITIES $ 3,021,284,038 $ 3,002,031,910   9,904,103     $ 9,348,025
 
Alger International Growth                            
Fund TOTAL FUND   LEVEL 1   LEVEL 2       LEVEL 3
COMMON STOCKS                            
Consumer Discretionary $ 22,284,018 $ 1,872,235 $ 20,411,783   —
Consumer Staples   13,562,738   2,354,077   11,208,661   —
Energy   15,172,214   6,106,666   9,065,548   —
Financials   45,372,919   8,542,722   36,830,197   —
Health Care   9,800,200   1,381,300   8,418,900   —
Industrials   18,308,883   1,654,846   16,654,037   —
Information Technology   36,601,362   12,935,093   23,666,269   —
Materials   10,938,242   —     10,938,242   —
Real Estate   4,111,563   2,174,154   1,937,409   —
Telecommunication Services   2,575,843   —     2,575,843   —
Utilities   861,846   —     861,846   —
TOTAL COMMON STOCKS $ 179,589,828 $ 37,021,093 $ 142,568,735     —
RIGHTS                            
Financials   496   496   —     —
TOTAL INVESTMENTS IN                            
SECURITIES $ 179,590,324 $ 37,021,589 $ 142,568,735     —

 

- 41 -

 

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

Alger Mid Cap Growth Fund TOTAL FUND   LEVEL 1       LEVEL 2     LEVEL 3
COMMON STOCKS                          
Consumer Discretionary $ 30,843,138 $ 30,843,138   —   —
Consumer Staples   2,253,345   2,253,345   —   —
Energy   1,559,546   1,559,546   —   —
Financials   12,671,597   12,671,597   —   —
Health Care   38,775,462   38,775,462   —   —
Industrials   32,583,062   32,583,062   —   —
Information Technology   54,816,445   54,722,283   —    $ 94,162
Materials   6,573,015   6,573,015   —   —
TOTAL COMMON STOCKS $ 180,075,610 $ 179,981,448     —   $ 94,162
PREFERRED STOCKS                          
Health Care   685,183   —     —       685,183
Information Technology   434,056   —     —       434,056
TOTAL PREFERRED                          
STOCKS $ 1,119,239 —       —   $ 1,119,239
REAL ESTATE INVESTMENT TRUST                      
Real Estate   4,051,138   4,051,138   —   —
RIGHTS                          
Health Care   1,687,722   —     —       1,687,722
SPECIAL PURPOSE VEHICLE                        
Financials   380,215   —     —       380,215
TOTAL INVESTMENTS IN                          
SECURITIES $ 187,313,924 $ 184,032,586     —   $ 3,281,338
Escrow Receivable  $ 678,214   —   $   678,214 * —
 
Alger SMid Cap Focus Fund TOTAL FUND   LEVEL 1       LEVEL 2     LEVEL 3
COMMON STOCKS                          
Consumer Discretionary $ 37,403,053 $ 37,403,053   —   —
Energy   2,289,346   2,289,346   —   —
Financials   18,880,314   18,880,314   —   —
Health Care   40,064,150   40,064,150   —   —
Industrials   38,703,897   38,703,897   —   —
Information Technology   68,155,784   67,688,251   —   $ 467,533
Real Estate   9,996,156   9,996,156   —   —
TOTAL COMMON STOCKS $ 215,492,700 $ 215,025,167     —   $ 467,533
PREFERRED STOCKS                          
Health Care   3,554,474   —     —       3,554,474
RIGHTS                          
Health Care   106,642   —     —       106,642
TOTAL INVESTMENTS IN                          
SECURITIES $ 219,153,816 $ 215,025,167     —   $ 4,128,649

 

- 42 -

 

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

Alger Small Cap Growth Fund TOTAL FUND   LEVEL 1       LEVEL 2     LEVEL 3
COMMON STOCKS                          
Consumer Discretionary $ 12,419,587 $ 12,419,587   —   —
Consumer Staples   1,611,677   1,611,677   —   —
Energy   1,705,173   1,705,173   —   —
Financials   4,709,051   4,709,051   —   —
Health Care   50,534,729   50,534,729   —   —
Industrials   8,150,899   8,150,899   —   —
Information Technology   46,038,050   46,038,050   —   —
Materials   2,194,620   2,194,620   —   —
TOTAL COMMON STOCKS $ 127,363,786 $ 127,363,786     —     —
PREFERRED STOCKS                          
Health Care   158,147   —     —   $ 158,147
REAL ESTATE INVESTMENT TRUST                      
Real Estate   1,136,608   1,136,608   —   —
RIGHTS                          
Health Care   527,470   —     —**      527,470
SPECIAL PURPOSE VEHICLE                        
Financials   350,182   —     —       350,182
TOTAL INVESTMENTS IN                          
SECURITIES $ 129,536,193 $ 128,500,394     —   $ 1,035,799
Escrow Receivable  $ 200,894   —   $   200,894 * —
 
Alger Small Cap Focus Fund TOTAL FUND   LEVEL 1       LEVEL 2     LEVEL 3
COMMON STOCKS                          
Consumer Discretionary $ 55,680,600 $ 55,680,600   —   —
Consumer Staples   7,480,674   7,480,674   —   —
Financials   22,462,448   22,462,448   —   —
Health Care   285,498,266   285,498,266   —   —
Industrials   57,475,690   57,475,690   —   —
Information Technology   258,048,951   258,048,951   —   —
Materials   10,520,904   10,520,904   —   —
TOTAL COMMON STOCKS $ 697,167,533 $ 697,167,533     —     —
RIGHTS                          
Health Care   34,051   —     —    $ 34,051
TOTAL INVESTMENTS IN                          
SECURITIES $ 697,201,584 $ 697,167,533     —   $ 34,051
Escrow Receivable  $ 13,684   —   $   13,684 * —
 
Alger Health Sciences Fund TOTAL FUND   LEVEL 1       LEVEL 2     LEVEL 3
COMMON STOCKS                          
Health Care $ 154,920,617 $ 152,007,914   —    $ 2,912,703
PREFERRED STOCKS                          
Health Care   3,233,148   —     —       3,233,148
RIGHTS                          
Health Care   6,609,829   —     —**       6,609,829
TOTAL INVESTMENTS IN                          
SECURITIES $ 164,763,594 $ 152,007,914     —   $ 12,755,680
Escrow Receivable  $ 2,249,371   —   $   2,249,371 * —

 

- 43 -

 

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

Alger Growth & Income Fund TOTAL FUND   LEVEL 1       LEVEL 2   LEVEL 3
COMMON STOCKS                      
Consumer Discretionary $ 16,346,318 $ 16,346,318     — —
Consumer Staples   11,731,927   11,731,927     — —
Energy   5,990,780   5,990,780     — —
Financials   18,221,887   18,221,887     — —
Health Care   17,921,940   17,921,940     — —
Industrials   12,886,424   12,886,424     — —
Information Technology   27,419,184   27,419,184     — —
Materials   2,323,138   2,323,138     — —
Telecommunication Services   3,589,243   3,589,243     — —
Utilities   714,251   714,251     — —
TOTAL COMMON STOCKS $ 117,145,092 $ 117,145,092       —   —
CONVERTIBLE PREFERRED STOCKS                  
Health Care   498,729   498,729     — —
MASTER LIMITED PARTNERSHIP                  
Energy   500,736   500,736     — —
Financials   1,944,095   1,944,095     — —
TOTAL MASTER LIMITED                      
PARTNERSHIP $ 2,444,831 $ 2,444,831       —   —
REAL ESTATE INVESTMENT TRUST                  
Financials   809,844   809,844     — —
Real Estate   2,788,229   2,788,229     — —
TOTAL REAL ESTATE                      
INVESTMENT TRUST $ 3,598,073 $ 3,598,073       —   —
SHORT-TERM INVESTMENTS                    
Money Market Fund   1,568,444   1,568,444     — —
TOTAL INVESTMENTS IN                      
SECURITIES $ 125,255,169 $ 125,255,169       —   —
 
Alger 25 Fund TOTAL FUND   LEVEL 1       LEVEL 2   LEVEL 3
COMMON STOCKS                      
Consumer Discretionary $ 1,291,151 $ 1,291,151     — —
Financials   1,614,935   1,614,935     — —
Health Care   443,963   443,963     — —
Industrials   1,104,698   1,104,698     — —
Information Technology   4,731,995   4,731,995     — —
Materials   685,951   685,951     — —
TOTAL COMMON STOCKS $ 9,872,693 $ 9,872,693       —   —
REAL ESTATE INVESTMENT TRUST                  
Real Estate   856,933   856,933     — —
TOTAL INVESTMENTS IN                      
SECURITIES $ 10,729,626 $ 10,729,626       —   —

 

* Amounts held for indemnification claims of Sumitomo Dainippon Pharma Co., Ltd. following its
acquisition of Tolero Pharmaceuticals, Inc.
** Alger Small Cap Growth Fund’s and Alger Health Sciences Fund’s holdings of Neuralstem, Inc.’s rights are
classified as a Level 2 investment and are fair valued at zero as of January 31, 2018.

- 44 -

 

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

    FAIR VALUE  
    MEASUREMENTS  
      USING  
    SIGNIFICANT  
    UNOBSERVABLE  
  INPUTS (LEVEL 3)  
Alger Capital Appreciation Fund   Common Stocks  
Opening balance at November 1, 2017 $ 881,371 *
Transfers into Level 3 —  
Transfers out of Level 3 —  
Total gains or losses        
Included in net realized gain (loss) on investments (24,057 )
Included in net change in unrealized appreciation (depreciation) on investments 24,057  
Purchases and sales    
Purchases —  
Sales —  
Closing balance at January 31, 2018 881,371  
Net change in unrealized appreciation (depreciation) attributable to        
investments still held at January 31, 2018 $ —  
 
Alger Capital Appreciation Fund   Corporate Bonds  
Opening balance at November 1, 2017 $ 0 *
Transfers into Level 3 —  
Transfers out of Level 3 —  
Total gains or losses        
Included in net realized gain (loss) on investments (388 )
Included in net change in unrealized appreciation (depreciation) on investments 388  
Purchases and sales    
Purchases —  
Sales —  
Closing balance at January 31, 2018 —  
Net change in unrealized appreciation (depreciation) attributable to        
investments still held at January 31, 2018 $ —  
 
Alger Capital Appreciation Fund   Preferred Stocks  
Opening balance at November 1, 2017 $ 8,466,654 *
Transfers into Level 3 —  
Transfers out of Level 3 —  
Total gains or losses        
Included in net realized gain (loss) on investments (1,562,011 )
Included in net change in unrealized appreciation (depreciation) on investments 1,562,011  
Purchases and sales    
Purchases —  
Sales —  
Closing balance at January 31, 2018 8,466,654  
Net change in unrealized appreciation (depreciation) attributable to        
investments still held at January 31, 2018 $ —  

 

- 45 -

 

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

    FAIR VALUE  
    MEASUREMENTS  
      USING  
    SIGNIFICANT  
    UNOBSERVABLE  
  INPUTS (LEVEL 3)  
Alger Capital Appreciation Fund     Warrants  
Opening balance at November 1, 2017 $ 0 *
Transfers into Level 3 —  
Transfers out of Level 3 —  
Total gains or losses        
Included in net realized gain (loss) on investments (387,114 )
Included in net change in unrealized appreciation (depreciation) on investments 387,114  
Purchases and sales    
Purchases —  
Sales —  
Closing balance at January 31, 2018 —  
Net change in unrealized appreciation (depreciation) attributable to        
investments still held at January 31, 2018 $ —  

 

    FAIR VALUE
    MEASUREMENTS
      USING
    SIGNIFICANT
    UNOBSERVABLE
  INPUTS (LEVEL 3)
Alger Mid Cap Growth Fund   Common Stocks
Opening balance at November 1, 2017 $ 94,162
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 —
Closing balance at January 31, 2018 94,162
Net change in unrealized appreciation (depreciation) attributable to      
investments still held at January 31, 2018 $ —

 

- 46 -

 

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

    FAIR VALUE
    MEASUREMENTS
      USING
    SIGNIFICANT
    UNOBSERVABLE
  INPUTS (LEVEL 3)
Alger Mid Cap Growth Fund   Preferred Stocks
Opening balance at November 1, 2017 $ 1,119,239
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 —
Closing balance at January 31, 2018 1,119,239
Net change in unrealized appreciation (depreciation) attributable to      
investments still held at January 31, 2018 $ —
 
Alger Mid Cap Growth Fund     Rights
Opening balance at November 1, 2017 $ 1,685,090
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 2,632
Purchases and sales  
Purchases —
Sales —
Closing balance at January 31, 2018 1,687,722
Net change in unrealized appreciation (depreciation) attributable to      
investments still held at January 31, 2018 $ 2,632
 
    Special Purpose
Alger Mid Cap Growth Fund     Vehicle
Opening balance at November 1, 2017 $ 380,215
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 —
Closing balance at January 31, 2018 380,215
Net change in unrealized appreciation (depreciation) attributable to      
investments still held at January 31, 2018 $ —

 

- 47 -

 

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

    FAIR VALUE  
    MEASUREMENTS  
      USING  
    SIGNIFICANT  
    UNOBSERVABLE  
  INPUTS (LEVEL 3)  
Alger SMid Cap Focus Fund   Common Stocks  
Opening balance at November 1, 2017 $ 467,533  
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 —  
Closing balance at January 31, 2018 467,533  
Net change in unrealized appreciation (depreciation) attributable to        
investments still held at January 31, 2018 $ —  
 
Alger SMid Cap Focus Fund   Preferred Stocks  
Opening balance at November 1, 2017 $ 5,709,632  
Transfers into Level 3 —  
Transfers out of Level 3 —  
Total gains or losses        
Included in net realized gain (loss) on investments (425,987 )
Included in net change in unrealized appreciation (depreciation) on investments 319,849  
Purchases and sales    
Purchases —  
Sales (2,049,020 )
Closing balance at January 31, 2018 3,554,474  
Net change in unrealized appreciation (depreciation) attributable to        
investments still held at January 31, 2018 $ —  
 
Alger SMid Cap Focus Fund     Rights  
Opening balance at November 1, 2017 $ 106,642  
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 —  
Closing balance at January 31, 2018 106,642  
Net change in unrealized appreciation (depreciation) attributable to        
investments still held at January 31, 2018 $ —  

 

- 48 -

 

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

    FAIR VALUE
    MEASUREMENTS
      USING
    SIGNIFICANT
    UNOBSERVABLE
  INPUTS (LEVEL 3)
Alger Small Cap Growth Fund   Preferred Stocks
Opening balance at November 1, 2017 $ 158,147
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 —
Closing balance at January 31, 2018 158,147
Net change in unrealized appreciation (depreciation) attributable to      
investments still held at January 31, 2018 $ —
 
Alger Small Cap Growth Fund     Rights
Opening balance at November 1, 2017 $ 526,690
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 780
Purchases and sales  
Purchases —
Sales —
Closing balance at January 31, 2018 527,470
Net change in unrealized appreciation (depreciation) attributable to      
investments still held at January 31, 2018 $ 780
 
    Special Purpose
Alger Small Cap Growth Fund     Vehicle
Opening balance at November 1, 2017 $ 350,182
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 —
Closing balance at January 31, 2018 350,182
Net change in unrealized appreciation (depreciation) attributable to      
investments still held at January 31, 2018 $ —

 

- 49 -

 

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

    FAIR VALUE
    MEASUREMENTS
      USING
    SIGNIFICANT
    UNOBSERVABLE
  INPUTS (LEVEL 3)
Alger Small Cap Focus Fund     Rights
Opening balance at November 1, 2017 $ 33,998
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 53
Purchases and sales  
Purchases —
Sales —
Closing balance at January 31, 2018 34,051
Net change in unrealized appreciation (depreciation) attributable to      
investments still held at January 31, 2018 $ 53

 

    FAIR VALUE
    MEASUREMENTS
      USING
    SIGNIFICANT
    UNOBSERVABLE
  INPUTS (LEVEL 3)
Alger Health Sciences Fund   Common Stocks
Opening balance at November 1, 2017 $ 2,912,703
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 —
Closing balance at January 31, 2018 2,912,703
Net change in unrealized appreciation (depreciation) attributable to      
investments still held at January 31, 2018 $ —

 

- 50 -

 

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

    FAIR VALUE
    MEASUREMENTS
      USING
    SIGNIFICANT
    UNOBSERVABLE
  INPUTS (LEVEL 3)
Alger Health Sciences Fund   Preferred Stocks
Opening balance at November 1, 2017 $ 3,233,148
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 —
Closing balance at January 31, 2018 3,233,148
Net change in unrealized appreciation (depreciation) attributable to      
investments still held at January 31, 2018 $ —
 
Alger Health Sciences Fund     Rights
Opening balance at November 1, 2017 $ 6,601,101
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 8,728
Purchases and sales  
Purchases —
Sales —
Closing balance at January 31, 2018 6,609,829
Net change in unrealized appreciation (depreciation) attributable to      
investments still held at January 31, 2018 $ 8,728

 

- 51 -

 

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

    FAIR VALUE  
    MEASUREMENTS  
      USING  
    SIGNIFICANT  
    UNOBSERVABLE  
  INPUTS (LEVEL 3)  
Alger Growth & Income Fund   Common Stocks  
Opening balance at November 1, 2017 $ 0 *
Transfers into Level 3 —  
Transfers out of Level 3 —  
Total gains or losses        
Included in net realized gain (loss) on investments (1,469 )
Included in net change in unrealized appreciation (depreciation) on investments 1,469  
Purchases and sales    
Purchases —  
Sales —  
Closing balance at January 31, 2018 —  
Net change in unrealized appreciation (depreciation) attributable to        
investments still held at January 31, 2018 $ —  
 
Alger Growth & Income Fund   Corporate Bonds  
Opening balance at November 1, 2017 $ 0 *
Transfers into Level 3 —  
Transfers out of Level 3 —  
Total gains or losses        
Included in net realized gain (loss) on investments (14 )
Included in net change in unrealized appreciation (depreciation) on investments 14  
Purchases and sales    
Purchases —  
Sales —  
Closing balance at January 31, 2018 —  
Net change in unrealized appreciation (depreciation) attributable to        
investments still held at January 31, 2018 $ —  
 
Alger Growth & Income Fund   Preferred Stocks  
Opening balance at November 1, 2017 $ 0 *
Transfers into Level 3 —  
Transfers out of Level 3 —  
Total gains or losses        
Included in net realized gain (loss) on investments (88,464 )
Included in net change in unrealized appreciation (depreciation) on investments 88,464  
Purchases and sales    
Purchases —  
Sales —  
Closing balance at January 31, 2018 —  
Net change in unrealized appreciation (depreciation) attributable to        
investments still held at January 31, 2018 $ —  

 

- 52 -

 

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

    FAIR VALUE  
    MEASUREMENTS  
      USING  
    SIGNIFICANT  
    UNOBSERVABLE  
  INPUTS (LEVEL 3)  
Alger Growth & Income Fund     Warrants  
Opening balance at November 1, 2017 $ 0 *
Transfers into Level 3 —  
Transfers out of Level 3 —  
Total gains or losses        
Included in net realized gain (loss) on investments (15,269 )
Included in net change in unrealized appreciation (depreciation) on investments 15,269  
Purchases and sales    
Purchases —  
Sales —  
Closing balance at January 31, 2018 —  
Net change in unrealized appreciation (depreciation) attributable to        
investments still held at January 31, 2018 $ —  
* Includes securities that are fair valued at $0.        

 

The following table provides quantitative information about our Level 3 fair value
measurements of our investments as of January 31, 2018. In addition to the techniques
and inputs noted in the table below, according to our valuation policy we may also use other
valuation techniques and methodologies when determining our fair value measurements.
The table below is not intended to be all-inclusive, but rather provides information on the
Level 3 inputs as they relate to our fair value measurements.

    Fair Value Valuation Unobservable     Weighted
    January 31, 2018 Methodology Input Input/Range     Average Inputs
Alger Capital Appreciation Fund          
Common Stocks $ 881,371 Market Market Quotation N/A*   N/A
                     Approach
Preferred Stocks   8,466,654 Market Time to Exit 2 years   N/A
      Approach Volatility 77.9 % N/A
        Market Quotation N/A   N/A
 
 
Alger Mid Cap Growth Fund          
Common Stocks   94,162 Market Market Quotation N/A*   N/A
                    Approach
Preferred Stocks   434,056 Market Market Quotation N/A*   N/A
                     Approach
Preferred Stocks   685,183 Income Discount Rate 40%-44% N/A
                    Approach
Special Purpose Vehicle   380,215 Market Revenue Multiple 3.1x-4.5x   N/A
                     Approach
Rights   1,687,722 Income Discount Rate 5.52%-30.72%   N/A
                     Approach

 

- 53 -

 

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

  Fair Value Valuation Unobservable     Weighted  
  January 31, 2018 Methodology Input Input/Range    Average Inputs  
Alger SMid Cap Focus Fund            
Common Stocks 467,533 Market Market Quotation N/A*   N/A  
Approach
Preferred Stocks 2,832,275 Market Time to Exit 2 years   N/A  
Approach
      Volatility 77.9 % N/A  
      Market Quotation N/A*   N/A  
Preferred Stocks 722,199 Income Discount Rate 40%-44% N/A  
Approach
Rights 106,642 Income Discount Rate 2.05 % N/A  
Approach
 
Alger Small Cap Growth Fund            
Preferred Stocks 158,147 Income Discount Rate 40%-44% N/A  
Approach
Special Purpose Vehicle 350,182 Market Revenue Multiple 3.1x-4.5x   N/A  
Approach
Rights 527,470 Income Discount Rate 2.05%-30.72%   17.10 %
Approach
 
Alger Small Cap Focus Fund            
Rights 34,051 Income Discount Rate 5.52%-30.72%   N/A  
Approach
 
Alger Health Sciences Fund            
Common Stocks 2,912,703 Market Revenue Multiple 6.0 x N/A  
Approach
Preferred Stocks 2,799,782 Income Discount Rate 40%-44% N/A  
Approach
Preferred Stocks 433,366 Market Time to Exit 2 years   N/A  
Approach
      Volatility 77.9 % N/A  
Rights 5,659,429 Income Discount Rate 2.05-30.72%   17.76 %
Approach
Rights 950,400 Market Revenue Multiple 6.0 x N/A  
Approach

 

* The Fund utilized a market approach to fair value this security. The significant unobservable input used in
the valuation model was a market quotation available to the Fund at January 31, 2018.

The significant unobservable inputs used in the fair value measurement of the Fund’s
securities are revenue and EBITDA multiples, discount rates, and the probabilities of
success of certain outcomes. Significant increases and decreases in these inputs in isolation
and interrelationships between those inputs could result in significantly higher or lower fair
value measurements than those noted in the table above. Generally, increases in revenue and
EBITDA multiples, decreases in discount rates, and increases in the probabilities of success
results in higher fair value measurements, whereas decreases in revenues and EBITDA

- 54 -

 

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

multiples, increases in discount rates, and decreases in the probabilities of success results in
lower fair value measurements.

On January 31, 2018, there were no transfers of securities between Level 1, Level 2 and
Level 3.

Certain of the Funds’ assets and liabilities are held at carrying amount or face value, which
approximates fair value for financial statement purposes. As of January 31, 2018, such assets
are categorized within the disclosure hierarchy as follows:

  TOTAL FUND   LEVEL 1   LEVEL 2 LEVEL 3
Cash, Foreign cash and Cash equivalents:                    
Alger Capital Appreciation Fund $ 18,237,260     — $ 18,237,260 —
Alger International Growth Fund                    
Foreign cash   1,914,406 $   1,914,406       — —
Bank overdraft   (403,019)     (403,019)     — —
Alger Mid Cap Growth Fund   5,782,067     —   5,782,067 —
Alger SMid Cap Focus Fund   7,890,997     —   7,890,997 —
Alger Small Cap Growth Fund   613,412     —       613,412 —
Alger Small Cap Focus Fund   3,207,835     —   3,207,835 —
Alger Health Sciences Fund   519,098     —       519,098 —
Alger Growth & Income Fund   3,422,257     —   3,422,257 —
Collateral on securities loaned   1,568,444     —   1,568,444 —
Alger 25 Fund   79,511     —       79,511 —

 

NOTE 4 — Derivatives:
Financial Accounting Standards Board 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, while also buying and selling call and put options on equities
and equity indexes. The Funds purchase call options to increase their exposure to the stock
market and also provide diversification of risk. The Funds purchase put options in order
to protect from significant market declines that may occur over a short period of time. The
Funds will 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

- 55 -

 

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

market investments but with reduced volatility and returns that are augmented with the cash
flows from the sale of options. During the three months ended January 31, 2018, 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 clearing house that acts as an
intermediary between buyer and seller, receiving initial and maintenance margin from both,
and guaranteeing performance of the option contract.

There were no open derivative instruments throughout the period or as of January 31, 2018.

NOTE 5 — Affiliated Securities:
The issuers of the securities listed below are deemed to be affiliates of the Funds because
the Funds or their affiliates owned 5% or more of the issuer’s voting securities during all
or part of the period ended January 31, 2018. Purchase and sale transactions and dividend
income earned during the period were as follows:

                        Net Increase    
    Shares/       Shares/           (Decrease)    
    Par at       Par at           in   Value at
    October 31, Purchases/ Sales/   January 31,   Interest Realized     Unrealized January 31,
Security   2017 Conversion Conversion   2018   Income Gain (Loss)     App(Dep)   2018
Alger Capital Appreciation Fund                        
Common Stocks                            
Choicestream, Inc. *   82,955 – (82,955 )* – – $         (24,057)   $ 24,057   –
Preferred Stocks                            
Choicestream, Inc. ,                            
Series A*   715,332 – (715,332 )* –   – (572,038 )   572,038   –
Choicestream, Inc. ,                            
Series B*   1,649,956 – (1,649,956 )* –   – (989,973 )   989,973   –
Warrants                            
Choicestream, Inc. ,                            
6/22/26* 387,502 – (387,502 )* –   – (387,114 )   387,114   –
Corporate Bonds                            
Choicestream, Inc. ,                            
11.00%, 8/5/18*   387,502 – (387,502 )* –   – (388 )   388   –
Total             – $      (1,973,570 ) $ 1,973,570   –
 
 
                        Net Increase    
    Shares/       Shares/           (Decrease)    
    Par at       Par at           in   Value at
    October 31, Purchases/ Sales/   January 31,   Interest Realized     Unrealized January 31,
Security   2017 Conversion Conversion   2018   Income Gain (Loss)     App(Dep)   2018
Alger Mid Cap Growth Fund                        
Preferred Stocks                            
Prosetta Biosciences,                            
Inc. , Series D   219,610 – –   219,610   – –     –  $ 685,183
Total               – –     – $ 685,183

 

- 56 -

 

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

                        Net Increase  
    Shares/       Shares/           (Decrease)  
    Par at       Par at               in Value at
    October 31, Purchases/ Sales/   January 31,   Interest   Realized   Unrealized January 31,
Security   2017 Conversion Conversion   2018   Income   Gain (Loss)       App(Dep) 2018
Alger SMid Cap Focus Fund                          
Preferred Stocks                              
Prosetta Biosciences,                              
Inc. , Series D   231,474 – –   231,474   –   –       – $       722,199
Total               –   –       – $      722,199
 
 
                        Net Increase  
    Shares/       Shares/           (Decrease)  
    Par at       Par at               in Value at
    October 31, Purchases/ Sales/   January 31,   Interest   Realized     Unrealized January 31,
Security   2017 Conversion Conversion   2018   Income   Gain (Loss)       App(Dep) 2018
Alger Small Cap Growth Fund                          
Preferred Stocks                              
Prosetta Biosciences,                              
Inc. , Series D   50,688 – –   50,688   –   –       – $       158,147
Total               –   –     – $      158,147
 
 
                        Net Increase  
    Shares/       Shares/           (Decrease)  
    Par at       Par at               in Value at
    October 31, Purchases/ Sales/   January 31,   Interest   Realized     Unrealized January 31,
Security   2017 Conversion Conversion   2018   Income   Gain (Loss)       App(Dep) 2018
Alger Health Sciences Fund                          
Preferred Stocks                              
Prosetta Biosciences,                              
Inc. , Series D   897,366 – –   897,366   –   –     – $     2,799,782
Total               –   –     – $    2,799,782
 
 
                        Net Increase  
    Shares/       Shares/           (Decrease)  
    Par at       Par at               in Value at
    October 31, Purchases/ Sales/   January 31,   Interest   Realized     Unrealized January 31,
Security   2017 Conversion Conversion   2018   Income   Gain (Loss)       App(Dep) 2018
Alger Growth & Income Fund                          
Common Stocks                              
Choicestream, Inc. *   5,064 – (5,064 )* – – $ (1,469 ) $   1,469 –
Preferred Stocks                              
Choicestream, Inc. ,                              
Series A*   43,672 – (43,672 )* –   –   (34,924 )     34,924 –
Choicestream, Inc. ,                              
Series B*   89,234 – (89,234 )* –   –   (53,540 )     53,540 –
Warrants                              
Choicestream, Inc. ,                              
6/22/26* 15,285 – (15,285 )* –   –   (15,269 )     15,269 –
Corporate Bonds                              
Choicestream, Inc. ,                              
11.00%, 8/5/18*   15,285 – (15,285 )* –   –   (14 )     14 –
Total               – $ (105,216 ) $   105,216 –

 

* The company was dissolved on December 20, 2017.

- 57 -

 

ITEM 2. Controls and Procedures.

(a) Based on their evaluation of Registrant’s disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) as of a
date within 90 days of the filing of this document, Registrant’s principal executive officer and
principal financial officer found Registrant’s disclosure controls and procedures to provide
reasonable assurances that information required to be disclosed by Registrant in the reports
it files under the Securities Exchange Act of 1934 (a) is accumulated and communicated
to Registrant’s management, including its principal executive officer and principal financial
officer, as appropriate to allow timely decisions regarding required disclosure, and (b) is
recorded, processed, summarized and reported within the time periods specified in the rules
and forms adopted by the U.S. Securities and Exchange Commission.

(b) No changes in the registrant’s internal control over financial reporting occurred during
the registrant’s last fiscal quarter that materially affected, or are reasonably likely to materially
affect, the registrant’s internal control over financial reporting.

ITEM 3. Exhibits.

Certifications of principal executive officer and principal financial officer as required by
Rule 30a-2(a) under the Investment Company Act of 1940 are attached as Exhibit 99.
CERT.

- 1 -

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.

The Alger Funds

By /s/Hal Liebes

Hal Liebes

President

Date: March 22, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, this report has been signed below by the following persons on
behalf of the registrant and in the capacities and on the dates indicated.

By /s/Hal Liebes

Hal Liebes

President

Date: March 22, 2018

By /s/ Michael D. Martins

Michael D. Martins

Treasurer

Date: March 22, 2018

- 1 -