N-Q 1 c33734_n-q.txt -------------------------- OMB APPROVAL OMB Number: 3235-0578 Expires: February 28,2006 Estimated average burden hours per response: 20.0 -------------------------- 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) 111 Fifth Avenue, New York, New York 10003 ------------------------------------------------------------- (Address of principal executive offices) (Zip code) Mr. Frederick A. Blum Fred Alger Management, Inc. 111 Fifth Avenue New York, New York 10003 ------------------------------------------------------------- (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: July 31, 2004 ITEM 1. Schedule of Investments. The Alger Funds Alger LargeCap Growth Fund Schedule of Investments (Unaudited) July 31, 2004 Common Stocks-98.1 Shares Value ----------- ----------- AEROSPACE & DEFENSE-.5% Boeing Company (The) 50,700 $ 2,573,025 ------------ BEVERAGES-1.9% Anheuser-Busch Companies, Inc. 180,600 9,373,140 ------------ BIOTECHNOLOGY-4.9% Biogen Idec Inc.* 224,800 13,488,000 Genentech, Inc.* 92,800 4,517,504 ImClone Systems Incorporated* 73,200 4,312,944 OSI Pharmaceuticals, Inc.* 38,900 2,337,890 ------------ 24,656,338 ------------ CAPITAL MARKETS-1.4% Affiliated Managers Group, Inc.* 51,337 2,356,882 T. Rowe Price Group Inc. 103,000 4,760,660 ------------ 7,117,542 ------------ CHEMICALS-1.3% Dow Chemical Co. 167,200 6,669,608 ------------ COMMERCIAL BANKS-.7% Wells Fargo & Company 64,300 3,691,463 ------------ COMMUNICATION EQUIPMENT-4.0% Cisco Systems, Inc.* 708,420 14,777,641 QUALCOMM Inc.* 73,800 5,098,104 ------------ 19,875,745 ------------ CONSUMER FINANCE-1.6% American Express Company 156,550 7,866,638 ------------ ELECTRONIC EQUIPMENT & INSTRUMENTS-.2% Symbol Technologies, Inc. 90,100 1,179,409 ------------ ENERGY EQUIPMENT & SERVICES-1.1% Schlumberger Limited 88,400 5,685,888 ------------ FOOD & STAPLES RETAILING-4.0% CVS Corp. 183,900 7,699,893 Wal-Mart Stores, Inc. 234,850 12,449,399 ------------ 20,149,292 ------------ FREIGHT & LOGISTICS-.8% FedEx Corp. 45,900 3,758,292 ------------ HEALTH CARE EQUIPMENT & SUPPLIES-2.6% Boston Scientific Corporation* 144,300 5,520,918 Medtronic, Inc. 152,250 7,562,258 ------------ 13,083,176 ------------ HEALTH CARE PROVIDERS & SERVICES-3.7% Aetna Inc. 80,000 6,864,000 HCA Inc. 298,750 11,546,688 ------------ 18,410,688 ------------ HOTELS, RESTAURANTS & LEISURE-4.9% Carnival Corporation 109,900 5,122,439 Royal Caribbean Cruises Ltd. 230,200 9,841,050 Starwood Hotels & Resorts Worldwide, Inc. 205,700 9,256,500 ------------ 24,219,989 ------------ HOUSEHOLD PRODUCTS-1.2% Fortune Brands, Inc. 85,500 6,171,390 ------------ INDUSTRIAL CONGLOMERATES-6.1% General Electric Company 403,600 13,419,700 Tyco International Ltd. 556,050 17,237,550 ------------ 30,657,250 ------------ INFORMATION TECHNOLOGY SERVICES-3.5% Automatic Data Processing, Inc. 130,000 5,457,400 First Data Corporation 266,200 11,875,182 ------------ 17,332,582 ------------ INSURANCE-3.3% AFLAC INCORPORATED 188,100 7,456,284 American International Group, Inc. 126,140 8,911,791 ------------ 16,368,075 ------------ INTERNET & CATALOG RETAIL-4.1% eBay Inc.* 146,960 11,511,377 NetFlix Inc.* 443,300 9,087,650 ------------ 20,599,027 ------------ INTERNET SOFTWARE & SERVICES-3.8% Yahoo! Inc. * 616,300 18,982,040 ------------ MEDIA-5.9% Comcast Corporation Special Cl. A* 286,900 7,688,920 Gannett Co., Inc. 46,410 3,858,527 Time Warner Inc.* 440,000 7,326,000 XM Satellite Radio Holdings Inc. Cl. A* 409,000 10,793,510 ------------ 29,666,957 ------------ MULTILINE RETAIL-3.0% Target Corporation 345,750 15,074,700 ------------ OIL & GAS-3.3% BP PLC Sponsored ADR# 98,700 5,562,732 Devon Energy Corporation 71,920 4,997,721 EOG Resources, Inc. 89,000 5,655,950 ------------ 16,216,403 ------------ PHARMACEUTICALS-7.0% Abbott Laboratories 133,600 5,257,160 IVAX Corporation* 163,500 3,899,475 Pfizer Inc. 663,000 21,189,480 Teva Pharmaceutical Industries Ltd. ADR# 153,400 4,540,640 ------------ 34,886,755 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT-15.2% Advanced Micro Devices, Inc.* 496,200 6,197,538 Altera Corporation * 551,000 11,471,820 Analog Devices, Inc. 249,000 9,885,300 Applied Materials, Inc.* 1,105,400 18,758,638 Broadcom Corporation Cl. A * 70,700 2,499,952 Linear Technology Corporation 351,850 13,757,335 Maxim Integrated Products, Inc. 54,600 2,626,260 Teradyne, Inc.* 613,400 10,489,140 ------------ 75,685,983 ------------ SOFTWARE-6.5% Microsoft Corporation 818,580 23,296,787 Oracle Corporation* 872,400 9,168,924 ------------ 32,465,711 ------------ SPECIALTY RETAIL-.8% Bed Bath & Beyond Inc.* 106,700 3,776,111 ------------ TEXTILES, APPAREL & LUXURY GOODS-.8% NIKE, Inc. Cl. B 52,000 3,780,920 ------------ Total Common Stocks (Cost $483,948,340) 489,974,137 ------------ Principal Amount ----------- Short-Term Investments-.5% U.S. Agency Obligations Federal Home Loan Banks, 1.23%, 8/2/04 (Cost $2,499,829) $ 2,500,000 2,499,829 ------------ Total Investments (Cost $486,448,169)(a) 98.6% 492,473,966 Other Assets in Excess of liabilities 1.4 6,832,342 ------------ ------------ Net Assets 100.0% $499,306,308 ============ ============ * Non-income producing securities. # American Depositary Receipts. (a) At July 31, 2004, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $486,448,169, amounted to $6,025,797 which consisted of aggregate gross unrealized appreciation of $33,183,251 and aggregate gross unrealized depreciation of $27,157,454. The Alger Funds Alger SmallCap Growth Fund Schedule of Investments (Unaudited) July 31, 2004 Common Stocks-95.2% SHARES VALUE ----------- ----------- AEROSPACE & DEFENSE-1.3% Alliant Techsystems Inc.* 33,250 $ 2,093,420 ------------ AIR FREIGHT & LOGISTICS-1.0% J.B. Hunt Transport Services, Inc. 40,400 1,551,764 ------------ BIOTECHNOLOGY-4.6% Cubist Pharmaceuticals, Inc.* 118,850 1,233,663 Ligand Pharmaceuticals Incorporated Cl. B* 85,350 1,178,684 Onyx Pharmaceuticals, Inc.* 37,450 1,278,169 QLT Inc.* 79,200 1,421,640 Telik, Inc.* 56,000 1,106,560 Vicuron Pharmaceuticals Inc.* 95,000 955,700 ------------ 7,174,416 ------------ BUSINESS SERVICES-.3% Digitas Inc.* 60,600 405,414 ------------ CAPITAL MARKETS-3.3% Affiliated Managers Group, Inc.* 41,625 1,911,004 National Financial Partners Corporation 57,500 1,936,600 Piper Jaffray Companies, Inc* 34,050 1,387,538 ------------ 5,235,142 ------------ COMMERCIAL BANKS-2.8% Southwest Bancorporation of Texas, Inc. 38,300 779,405 UCBH Holdings, Inc. 51,600 2,017,044 Westcorp 36,450 1,515,591 ------------ 4,312,040 ------------ COMMERCIAL SERVICES & SUPPLIES-4.5% CoStar Group Inc.* 47,500 2,016,375 Education Management Corporation* 65,200 1,809,952 Gevity HR, Inc. 94,000 1,953,320 Universal Technical Institute Inc.* 38,800 1,268,760 ------------ 7,048,407 ------------ COMMUNICATION EQUIPMENT-2.4% Advanced Fibre Communications, Inc.* 73,950 1,239,402 Foundry Networks, Inc.* 120,600 1,237,356 Sierra Wireless Inc.* 41,900 1,318,593 ------------ 3,795,351 ------------ COMPUTERS & PERIPHERALS-2.1% Avid Technology, Inc.* 37,300 1,743,402 Silicon Image, Inc.* 127,300 1,526,327 ------------ 3,269,729 ------------ COMPUTER SERVICES-1.7% Open Solutions Inc.* 86,900 1,967,416 Intelligroup,Inc.* 181,200 703,056 ------------ 2,670,472 ------------ CONSUMER FINANCE-1.3% First Marblehead Corporation (The)* 49,000 2,056,040 ------------ ELECTRIC AND ELECTRONIC EQUIPMENT-.9% Roper Industries, Inc. 26,250 1,470,000 ------------ ELECTRONIC EQUIPMENT & INSTRUMENTS-1.9% Rogers Corporation 18,900 934,605 Trimble Navigation Limited* 75,200 2,088,304 ------------ 3,022,909 ------------ ENERGY-1.4% Swift Energy Company* 98,700 2,239,503 ------------ ENERGY EQUIPMENT & SERVICES-1.6% Varco International, Inc.* 104,450 2,524,557 ------------ FOOD & STAPLES RETAILING-1.3% NeighborCare, Inc.* 81,800 2,097,352 ------------ HEALTH CARE EQUIPMENT & SUPPLIES-4.9% Dade Behring Holdings Inc.* 29,350 1,458,402 Intuitive Surgical, Inc.* 84,150 1,925,352 Immucor, Inc.* 98,700 1,999,662 Mentor Corporation 39,200 1,234,408 Wright Medical Group, Inc.* 38,810 1,072,320 ------------ 7,690,144 ------------ HEALTH CARE PROVIDERS & SERVICES-8.7% Accredo Health, Incorporated* 55,200 1,788,480 LifePoint Hospitals, Inc.* 56,600 1,891,006 Molina Healthcare Inc.* 63,200 2,096,976 Psychiatric Solutions, Inc.* 73,850 1,883,914 Sierra Health Services, Inc* 48,600 2,148,120 Sunrise Senior Living Inc.* 55,100 1,945,030 VCA Antech, Inc.* 47,000 1,975,410 ------------ 13,728,936 ------------ HOTELS, RESTAURANTS & LEISURE-4.0% Applebee's International, Inc. 76,813 2,046,285 P.F. Chang's China Bistro, Inc.* 26,800 1,190,724 Multimedia Games, Inc.* 58,000 1,097,940 Station Casinos, Inc. 43,600 1,883,520 ------------ 6,218,469 ------------ INFORMATION TECHNOLOGY SERVICES-4.3% Alliance Data Systems Corporation* 55,900 2,219,789 Global Payments Inc. 36,850 1,682,203 Kanbay International Inc.* 99,900 1,549,449 Lionbridge Technologies, Inc.* 175,100 1,302,744 ------------ 6,754,185 ------------ INSURANCE-1.2% Arch Capital Group Ltd.* 48,050 1,849,925 ------------ INTERNET SOFTWARE & SERVICES-4.9% Chordiant Software Inc.* 418,300 1,296,730 iVillage Inc. 98,400 508,728 Netegrity, Inc.* 165,200 1,080,408 Openwave Systems, Inc.* 137,033 1,558,065 SonicWALL, Inc.* 244,900 1,623,687 ValueClick, Inc.* 151,450 1,572,051 ------------ 7,639,669 ------------ LEISURE EQUIPMENT & PRODUCTS-1.0% LIFE TIME FITNESS, Inc.* 70,600 1,634,390 ------------ MACHINERY-2.4% Actuant Corporation Cl. A* 52,500 1,914,150 Terex Corporation* 49,400 1,922,154 ------------ 3,836,304 ------------ MEDIA-3.2% Media General, Inc. Cl. A 29,570 1,767,103 Playboy Enterprises, Inc. Cl. B* 130,800 1,459,728 Spanish Broadcasting System, Inc. Cl. A * 214,900 1,845,991 ------------ 5,072,822 ------------ MEDICAL DEVICES-1.4% Advanced Medical Optics, Inc.* 58,600 2,229,730 ------------ OIL & GAS-2.5% Energy Partners, Ltd. 8,100 126,684 Evergreen Resources, Inc.* 63,900 2,614,788 General Maritime Corp.* 41,500 1,230,890 ------------ 3,972,362 ------------ PAPER & FOREST PRODUCTS-1.3% Louisiana-Pacific Corporation 83,250 1,971,360 ------------ PHARMACEUTICALS-1.8% Eyetech Pharmaceuticals Inc.* 24,900 923,790 Medicines Company* 71,150 1,882,629 ------------ 2,806,419 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT-5.7% AMIS Holdings, Inc.* 96,200 1,417,026 Axcelis Technologies, Inc.* 147,800 1,378,974 Brooks Automation, Inc.* 86,000 1,239,260 Fairchild Semiconductor International, Inc.* 104,800 1,539,512 Integrated Circuit Systems, Inc.* 64,650 1,546,428 Semtech Corporation* 94,850 1,882,773 ------------ 9,003,973 ------------ SEMICONDUCTOR CAPITAL EQUIPMENT-.7% SiRF Technology Holdings, Inc.* 96,600 1,080,954 ------------ SOFTWARE-4.1% Fair Isaac Corporation 36,780 1,051,172 Hyperion Solutions Corporation* 53,700 2,202,774 Quest Software, Inc. * 84,350 1,017,261 Take-Two Interactive Software, Inc.* 68,650 2,150,118 ------------ 6,421,325 ------------ SPECIALTY RETAIL-4.9% AnnTaylor Stores Corporation* 77,737 2,086,461 Aeropostale, Inc.* 62,750 1,912,620 Guitar Center, Inc.* 41,950 1,885,653 PETCO Animal Supplies, Inc.* 63,500 1,896,745 ------------ 7,781,479 ------------ TEXTILES, APPAREL & LUXURY GOODS-1.1% Quiksilver, Inc.* 77,900 1,679,520 ------------ THRIFTS & MORTGAGE FINANCE-1.2% Bank Mutual Corporation 173,524 1,957,351 ------------ TRADING COMPANIES & DISTRIBUTORS-1.2% MSC Industrial Direct Co., Cl. A 59,700 1,868,610 ------------ TRANSPORTATION SERVICES-1.0% Sirva Inc.* 66,600 1,557,108 ------------ WIRELESS TELECOMMUNICATION SERVICES-1.3% SpectraSite, Inc.* 49,100 2,111,300 ------------ Total Common Stocks (Cost $139,008,370) 149,832,851 ------------ Short-Term Investments-4.3% Principal U.S. Agency Obligations Amount Federal Home Loan Banks, 1.23%, 8/2/04 ------------ (Cost $6,799,535) $ 6,800,000 6,799,535 ------------ Total Investments (Cost $145,807,905)(a) 99.5% 156,632,386 Other Assets in Excess of liabilities 0.5 817,388 ------------ ------------ Net Assets 100.0% $157,449,774 ============ ============ * Non-income producing securities. (a) At July 31, 2004, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $145,807,905, amounted to $10,824,481 which consisted of aggregate gross unrealized appreciation of $20,395,088 and aggregate gross unrealized depreciation of $9,570,607. The Alger Funds Alger Balanced Fund Schedule of Investments (Unaudited) July 31, 2004 Common Stocks-62.9% Shares Value ----------- ------------ AEROSPACE & DEFENSE-.3% Boeing Company (The) 14,800 $ 751,100 ------------ BEVERAGES-1.2% Anheuser-Busch Companies, Inc. 55,700 2,890,830 ------------ BIOTECHNOLOGY-3.1% Biogen Idec Inc.* 66,700 4,002,000 Genentech, Inc.* 27,100 1,319,228 ImClone Systems Incorporated* 21,400 1,260,888 OSI Pharmaceuticals, Inc.* 11,400 685,140 ------------ 7,267,256 ------------ CAPITAL MARKETS-.9% Affiliated Managers Group, Inc.* 16,350 750,629 T. Rowe Price Group Inc. 30,100 1,391,222 ------------ 2,141,851 ------------ CHEMICALS-.9% Dow Chemical Co. 50,200 2,002,478 ------------ COMMERCIAL BANKS-.5% Wells Fargo & Company 18,900 1,085,049 ------------ COMMUNICATION EQUIPMENT-2.5% Cisco Systems, Inc.* 206,500 4,307,590 QUALCOMM Inc.* 21,600 1,492,128 ------------ 5,799,718 ------------ CONSUMER FINANCE-1.1% American Express Company 48,400 2,432,100 ------------ ELECTRONIC EQUIPMENT & INSTRUMENTS-.2% Symbol Technologies, Inc. 26,400 345,576 ------------ ENERGY EQUIPMENT & SERVICES-.6% Schlumberger Limited 22,500 1,447,200 ------------ FOOD & STAPLES RETAILING-2.6% CVS Corp. 54,300 2,273,541 Wal-Mart Stores, Inc. 68,900 3,652,389 ------------ 5,925,930 ------------ FREIGHT & LOGISTICS-.5% FedEx Corp. 13,400 1,097,192 ------------ HEALTH CARE EQUIPMENT & SUPPLIES-1.7% Boston Scientific Corporation* 42,400 1,622,224 Medtronic, Inc. 44,500 2,210,315 ------------ 3,832,539 ------------ HEALTH CARE PROVIDERS & SERVICES-2.4% Aetna Inc. 23,500 2,016,300 HCA Inc. 88,650 3,426,323 ------------ 5,442,623 ------------ HOTELS, RESTAURANTS & LEISURE-3.1% Carnival Corporation 32,200 1,500,842 Royal Caribbean Cruises Ltd. 67,600 2,889,900 Starwood Hotels & Resorts Worldwide, Inc. 60,400 2,718,000 ------------ 7,108,742 ------------ HOUSEHOLD PRODUCTS-.8% Fortune Brands, Inc. 26,600 1,919,988 ------------ INDUSTRIAL CONGLOMERATES-3.9% General Electric Company 117,650 3,911,863 Tyco International Ltd. 162,700 5,043,700 ------------ 8,955,563 ------------ INFORMATION TECHNOLOGY SERVICES-2.2% Automatic Data Processing, Inc. 37,900 1,591,042 First Data Corporation 77,600 3,461,736 ------------ 5,052,778 ------------ INSURANCE-2.2% AFLAC INCORPORATED 55,200 2,188,128 American International Group, Inc. 38,900 2,748,285 ------------ 4,936,413 ------------ INTERNET & CATALOG RETAIL-2.7% eBay Inc.* 45,250 3,544,433 NetFlix Inc.* 130,500 2,675,250 ------------ 6,219,683 ------------ INTERNET SOFTWARE & SERVICES-2.4% Yahoo! Inc. * 182,100 5,608,680 ------------ MEDIA-3.8% Comcast Corporation Special Cl. A* 85,700 2,296,760 Gannett Co., Inc. 13,650 1,134,861 Time Warner Inc.* 128,900 2,146,185 XM Satellite Radio Holdings Inc. Cl. A* 119,850 3,162,842 ------------ 8,740,648 ------------ MULTILINE RETAIL-1.9% Target Corporation 101,450 4,423,220 ------------ OIL & GAS-2.1% BP PLC Sponsored ADR# 28,900 1,628,804 Devon Energy Corporation 21,050 1,462,765 EOG Resources, Inc. 26,100 1,658,655 ------------ 4,750,224 ------------ PHARMACEUTICALS-4.5% Abbott Laboratories 39,100 1,538,585 IVAX Corporation* 47,900 1,142,415 Pfizer Inc. 194,400 6,213,024 Teva Pharmaceutical Industries Ltd. ADR# 45,200 1,337,920 ------------ 10,231,944 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT-9.7% Advanced Micro Devices, Inc.* 143,100 1,787,319 Altera Corporation * 161,500 3,362,430 Analog Devices, Inc. 73,000 2,898,100 Applied Materials, Inc.* 324,200 5,501,674 Broadcom Corporation Cl. A * 20,600 728,416 Linear Technology Corporation 103,300 4,039,030 Maxim Integrated Products, Inc. 16,200 779,220 Teradyne, Inc.* 179,100 3,062,610 ------------ 22,158,799 ------------ SPECIALTY RETAIL-.5% Bed Bath & Beyond Inc.* 31,200 1,104,168 ------------ SOFTWARE-4.1% Microsoft Corporation 239,400 6,813,324 Oracle Corporation* 256,750 2,698,440 ------------ 9,511,764 ------------ TEXTILES, APPAREL & LUXURY GOODS-.5% NIKE, Inc. Cl. B 16,200 1,177,902 ------------ Total Common Stocks (Cost $141,918,331) 144,361,958 ------------ Corporate Bonds-14.6% Par Value ----------- AEROSPACE & DEFENSE-.7% Boeing Capital Corp., 6.50%, 2/15/12 $ 425,000 463,892 Northrop Grumman Corporation, 7.125%, 2/15/11 435,000 489,947 United Technologies, 4.875%, 11/1/06 732,000 760,810 ------------ 1,714,649 ------------ AUTO EQUIPMENT & SERVICES-.2% Hertz Corp., 4.70%, 10/2/06 396,000 402,452 ------------ AUTOMOTIVE-1.2% DaimlerChrysler N. A. Holding Corp., 4.05%, 6/4/08 425,000 421,487 Ford Motor Credit Company, 6.50%, 1/25/07 1,100,000 1,160,733 Ford Motor Credit Company, 7.875%, 6/15/10 525,000 573,841 General Motors Acceptance Corp., 4.50%, 7/15/06 606,000 614,759 ------------ 2,770,820 ------------ BEVERAGES-.3% Anheuser-Busch Companies, Inc., 7.00%, 12/1/25 650,000 690,568 ------------ CAPITAL MARKETS-1.1% Goldman Sachs Group, Inc., 6.60%, 1/15/12 1,000,000 1,088,966 J.P. Morgan Chase & Co., 3.625%, 5/1/08 750,000 742,130 Morgan Stanley, 6.75%, 4/15/11 750,000 825,035 ------------ 2,656,131 ------------ COMMERCIAL BANKS-.5% Associates Corp. North America, 6.95%, 11/1/18 622,000 696,708 US Bancorp National Association, Minneapolis, 6.50%, 2/1/08 400,000 437,204 ------------ 1,133,912 ------------ COMMUNICATION SERVICES-.7% AT&T Wireless Services Inc., 7.50%, 5/1/07 1,520,000 1,671,614 ------------ COMPUTERS & PERIPHERALS-.3% International Business Machines, 8.375%, 11/1/19 595,000 758,323 ------------ DIVERSIFIED FINANCIAL SERVICES-.3% Block Financial Corp., 8.50%, 4/15/07 500,000 561,794 Household Finance Corp., 4.625%, 1/15/08 275,000 281,571 ------------ 843,365 ------------ DIVERSIFIED TELECOMMUNICATION SERVICES-1.3% Sprint Capital Corp., 6.00%, 1/15/07 815,000 857,653 Verizon New York Inc. Series A, 6.875%, 4/1/12 789,000 857,475 Verizon Wireless Capital LLC Note, 5.375% 12/15/06 1,250,000 1,306,261 ------------ 3,021,389 ------------ ELECTRIC UTILITIES-.8% AEP Texas North Company Senior Notes, 5.50%, 03/01/13 523,000 528,996 Dominion Resources, Inc. 5.00%, 3/15/13 690,000 671,101 Washington Gas Light Co., 6.51%, 8/18/08 500,000 541,366 ------------ 1,741,463 ------------ ENERGY EQUIPMENT & SERVICES-.5% Baker Hughes Inc., 6.25%, 1/15/09 1,000,000 1,082,978 ------------ FINANCIAL SERVICES-.8% Core Investment Grade Bond Trust I 4.727%, 11/30/07 1,750,000 1,796,008 ------------ FOOD CHAINS-.2% Fred Meyer,Inc. Sr. Notes 7.45%, 3/1/08 310,000 344,850 ------------ FOOD PRODUCTS-.7% Kellogg Co. Senior Note, 2.875%, 6/1/08 697,000 673,583 Kraft Foods Inc., 6.25%, 6/1/12 840,000 898,043 ------------ 1,571,626 ------------ INDUSTRIAL CONGLOMERATES-.7% General Electric Company, 5.00%, 2/1/13 680,000 679,941 Tyco International Group SA, 6.00%, 11/15/13 340,000 354,327 Tyco International Group SA, 5.80%, 8/1/06 615,000 643,597 ------------ 1,677,865 ------------ INSURANCE-.3% Safeco Corporation 7.25%, 9/1/12 600,000 680,023 ------------ MEDIA-1.4% AOL Time Warner Inc., 6.875%, 5/1/12 700,000 764,040 Comcast Corporation, 6.50%, 1/15/15 459,000 483,856 Cox Enterprises, Inc., 4.375%, 5/1/08(a) 667,000 668,822 General Motors Corporation, 8.25%, 7/15/23 360,000 374,959 Liberty Media Corporation Floating Rate Note, 3.02%, 9/17/06 450,000 456,939 News America Inc., 6.625%, 1/9/08 435,000 472,129 ------------ 3,220,745 ------------ OIL & GAS-.4% Conoco Funding Co., 6.35%, 10/15/11 750,000 821,559 ------------ PHARMACEUTICALS-.5% Pharmacia Corporation, 6.50%, 12/1/18 1,000,000 1,115,556 ------------ TELEPHONES-.5% Deutsche Telek International Finance B V Gtd Notes, 8.50%, 6/15/10 1,000,000 1,180,852 ------------ THRIFTS & MORTGAGE FINANCE-.5% Washington Mutual, Inc., 4.375%, 1/15/08 1,050,000 1,066,331 ------------ UTILITIES-.2% Southern California Edison Co., 5.00%, 1/15/14 450,000 445,285 ------------ WIRELESS TELECOMMUNICATION SERVICES-.5% Vodafone Group PLC, 7.75%, 2/15/10 1,000,000 1,154,529 ------------ Total Corporate Bonds(Cost $32,904,469) 33,562,893 ------------ U.S. Government & Agency Obligations-17.3% Federal Home Loan Mortgage Corporation, 4.25%, 7/15/09 800,000 806,897 Federal National Mortgage Association, 1.875%, 9/15/05 2,790,000 2,775,132 2.30%, 1/20/06 900,000 896,266 3.125%, 7/15/06 9,910,000 9,963,118 6.625%, 10/15/07 910,000 996,760 3.25%, 8/15/08 940,000 920,563 6.625%, 11/15/30 350,000 392,504 U.S. Treasury Bonds, 7.25%, 5/15/16 3,482,000 4,256,202 U.S. Treasury Bonds, 7.50%, 11/15/16 1,483,000 1,849,117 U.S. Treasury Bonds, 6.25%, 8/15/23 3,148,000 3,531,911 U.S. Treasury Bonds, 6.875%, 8/15/25 1,751,000 2,109,614 U.S. Treasury Bonds, 6.00%, 2/15/26 3,831,000 4,183,724 U.S. Treasury Bonds, 6.125%, 11/15/27 1,020,000 1,133,395 U.S. Treasury Bonds, 5.50%, 8/15/28 1,500,000 1,540,899 U.S. Treasury Bonds, 5.25%, 11/15/28 944,000 938,101 U.S. Treasury Bonds, 5.375%, 2/15/31 951,000 974,330 U.S. Treasury Notes, 2.625%, 3/15/09 455,000 436,001 U.S. Treasury Notes, 4.375%, 5/15/07 480,000 497,325 U.S. Treasury Notes, 4.00%, 2/15/14 1,682,000 1,621,223 ------------ Total U.S. Government & Agency Obligations (Cost$40,051,850) 39,823,082 ------------ Short-Term Investments-4.3% U.S. Agency Obligations Federal Home Loan Banks, 1.23%, 8/2/04 (Cost $9,849,327) 9,850,000 9,849,327 ------------ Total Investments (Cost $224,723,977)(b) 99.1% 227,597,260 Other Assets in Excess of liabilities 0.9 2,005,258 ------------ ------------ Net Assets 100.0% $229,602,518 ============ ============ * Non-income producing securities. # American Depositary Receipts. (a) Pursuant to Securities and Exchange Commission Rule 144A, these securities are liquid and may be sold prior to their maturity only to qualified institutional buyers. These securities represent 0.4% of net assets of the Fund. (b) At July 31, 2004, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $224,723,977, amounted to $2,873,283 which consisted of aggregate gross unrealized appreciation of $10,969,437 and aggregate gross unrealized depreciation of $8,096,154. The Alger Funds Alger MidCap Growth Fund Schedule of Investments (Unaudited) July 31, 2004 Common Stocks-99.6% Shares Value ----------- ------------ AEROSPACE & DEFENSE-1.0% L-3 Communications Holdings, Inc. 101,180 $ 6,187,157 ------------ AUTO COMPONENTS-.8% Autoliv, Inc. 114,200 4,806,678 ------------ BIOTECHNOLOGY-4.4% Genzyme Corporation General Division* 123,200 6,317,696 ImClone Systems Incorporated* 156,950 9,247,494 OSI Pharmaceuticals, Inc.* 189,350 11,379,935 ------------ 26,945,125 ------------ CAPITAL MARKETS-1.3% Affiliated Managers Group, Inc.* 171,922 7,892,939 ------------ CHEMICALS-1.5% Millennium Chemicals Inc.* 494,300 8,724,395 ------------ COMMERCIAL BANKS-1.4% North Fork Bancorporation, Inc. 147,300 5,752,065 Zions Bancorporation 45,400 2,746,700 ------------ 8,498,765 ------------ COMMERCIAL SERVICES & SUPPLIES-2.9% Corporate Executive Board Company (The) 114,500 6,492,150 Gevity HR, Inc. 86,600 1,799,548 Service Corporation International* 1,423,500 9,039,225 ------------ 17,330,923 ------------ COMMUNICATION EQUIPMENT-2.4% Avaya Inc.* 785,750 11,511,238 Foundry Networks, Inc.* 311,500 3,195,990 ------------ 14,707,228 ------------ COMMUNICATION TECHNOLOGY-.3% Andrew Corporation* 182,400 1,979,040 ------------ COMPUTERS & PERIPHERALS-3.6% Apple Computer, Inc.* 96,700 3,127,278 PalmOne, Inc.* 460,550 18,523,321 ------------ 21,650,599 ------------ COMPUTER SERVICES-2.1% Akamai Technologies Inc.* 840,250 12,544,933 ------------ CONSUMER FINANCE-.9% First Marblehead Corporation (The)* 121,000 5,077,160 ------------ ELECTRICAL EQUIPMENT-2.5% Rockwell Automation, Inc. 409,300 15,311,913 ------------ ELECTRONIC EQUIPMENT & INSTRUMENTS-3.1% Symbol Technologies, Inc. 195,000 2,552,550 Thermo Electron Corporation* 167,300 4,302,956 Trimble Navigation Limited* 423,925 11,772,397 ------------ 18,627,903 ------------ ENERGY EQUIPMENT & SERVICES-3.0% Cooper Cameron Corporation* 207,450 10,598,621 National-Oilwell, Inc.* 231,300 7,736,985 ------------ 18,335,606 ------------ HEALTH CARE EQUIPMENT & SUPPLIES-7.3% C.R. Bard, Inc. 87,000 4,802,400 Cytyc Corporation* 282,300 6,823,191 Fisher Scientific International Inc.* 192,500 11,203,500 Given Imaging Ltd.* 94,000 3,235,480 INAMED Corporation* 128,300 6,951,294 Kinetic Concepts, Inc.* 220,200 9,891,384 Varian Medical Systems, Inc.* 21,150 1,459,562 ------------ 44,366,811 ------------ HEALTH CARE PROVIDERS & SERVICES-1.9% AMERIGROUP Corporation* 65,400 3,136,584 Quest Diagnostics Incorporated 105,350 8,647,128 ------------ 11,783,712 ------------ HOTELS, RESTAURANTS & LEISURE-7.5% Applebee's International, Inc. 233,800 6,228,432 Cheesecake Factory Incorporated (The)* 240,000 10,024,800 International Speedway Corporation Cl. A 132,550 6,897,902 Multimedia Games, Inc.* 387,400 7,333,482 Royal Caribbean Cruises Ltd. 186,100 7,955,775 Station Casinos, Inc. 70,100 3,028,320 Wynn Resorts, Limited* 119,550 4,277,499 ------------ 45,746,210 ------------ HOUSEHOLD DURABLES-1.4% Garmin Ltd. 232,450 8,716,875 ------------ INSURANCE-2.1% MGIC Investment Corporation 178,150 12,648,650 ------------ INTERNET & CATALOG RETAIL-3.0% NetFlix Inc.* 899,100 18,431,550 ------------ MACHINERY - OIL WELL EQUIPMENT & SERVICES-1.0% Patterson-UTI Energy, Inc. 322,800 5,884,644 ------------ MEDIA-4.7% Gemstar-TV Guide International, Inc.* 1,249,900 5,799,536 Meredith Corporation 79,950 4,227,756 Westwood One, Inc.* 128,500 3,058,300 XM Satellite Radio Holdings Inc. Cl. A* 590,700 15,588,573 ------------ 28,674,165 ------------ MEDICAL DEVICES-1.0% Advanced Medical Optics, Inc.* 150,700 5,734,135 ------------ METALS & MINING-1.1% Peabody Energy Corporation 117,700 6,612,386 ------------ OIL & GAS-3.0% EOG Resources, Inc. 215,100 13,669,605 Teekay Shipping Corporation 109,600 4,359,888 ------------ 18,029,493 ------------ PHARMACEUTICALS-6.9% Elan Corporation PLC Sponsored ADR*# 508,800 10,455,840 Eyetech Pharmaceuticals Inc.* 273,500 10,146,850 IVAX Corporation* 532,100 12,690,585 Sepracor Inc.* 191,000 8,780,270 ------------ 42,073,545 ------------ RETAIL-.5% Finish Line Inc. Cl. A* 115,400 3,285,438 ------------ ROAD & RAIL-1.8% Yellow Roadway Corporation* 244,000 10,616,440 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT-10.5% Advanced Micro Devices, Inc.* 123,400 1,541,266 Altera Corporation * 537,600 11,192,832 Broadcom Corporation Cl. A * 136,850 4,839,016 KLA-Tencor Corporation* 138,200 5,695,222 Semiconductor Manufacturing International Corporation ADR*# 1,016,050 11,013,982 Skyworks Solutions, Inc.* 1,321,050 11,070,399 Teradyne, Inc.* 1,060,550 18,135,405 ------------ 63,488,122 ------------ SPECIALTY RETAIL-6.0% Abercrombie & Fitch Co. Cl. A 41,300 1,523,144 Bed Bath & Beyond Inc.* 106,200 3,758,418 Chico's FAS, Inc.* 71,200 2,981,144 Hot Topic, Inc.* 187,450 2,984,204 Sharper Image Corporation* 231,550 6,182,385 Tiffany & Co. 280,200 10,017,150 Tractor Supply Company* 252,300 9,148,398 ------------ 36,594,843 ------------ SOFTWARE-5.5% Activision, Inc* 391,200 5,731,080 Amdocs Limited* 214,100 4,645,970 PalmSource, Inc.* 525,118 10,638,891 PeopleSoft, Inc.* 168,300 3,032,766 Take-Two Interactive Software, Inc.* 289,650 9,071,838 ------------ 33,120,545 ------------ TEXTILES, APPAREL & LUXURY GOODS-1.5% Fossil, Inc.* 126,100 3,050,359 Polo Ralph Lauren Corp Cl. A 191,100 6,298,654 ------------ 9,349,013 ------------ WIRELESS TELECOMMUNICATION SERVICES-1.7% SpectraSite, Inc.* 245,300 10,547,900 ------------ Total Common Stocks (Cost $583,046,874) 604,324,841 ------------ Principal Amount Short-Term Investments-.6% ------------ U.S. Agency Obligations Federal Home Loan Banks, 1.23%, 8/2/04 (Cost $3,349,771) $ 3,350,000 3,349,771 ------------ Total Investments (Cost $586,396,645)(a) 100.2% 607,674,612 Liabilities in Excess of Other Assets -0.2 (1,260,069) ------------ ------------ Net Assets 100.0% $606,414,543 ============ ============ * Non-income producing securities. # American Depositary Receipts. (a) At July 31, 2004, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $586,396,645, amounted to $21,277,967 which consisted of aggregate gross unrealized appreciation of $49,704,069 and aggregate gross unrealized depreciation of $28,426,102. The Alger Funds Alger Capital Appreciation Fund Schedule of Investments (Unaudited) July 31, 2004 Common Stocks-99.2% Shares Value -------- ------------ AEROSPACE & DEFENSE-3.5% Lockheed Martin Corporation 152,300 $ 8,070,377 United Technologies Corporation 66,100 6,180,350 ------------ 14,250,727 ------------ BIOTECHNOLOGY-4.9% Biogen Idec Inc.* 177,100 10,626,000 Genentech, Inc.* 114,200 5,559,256 OSI Pharmaceuticals, Inc.* 65,050 3,909,505 ------------ 20,094,761 ------------ COMMUNICATION EQUIPMENT-8.4% Corning Incorporated* 512,700 6,336,972 Juniper Networks, Inc.* 195,800 4,495,568 QUALCOMM Inc.* 90,400 6,244,832 Research in Motion Limited* 206,500 12,734,855 Sierra Wireless Inc.* 140,100 4,408,947 ------------ 34,221,174 ------------ COMPUTERS & PERIPHERALS-2.7% PalmOne, Inc.* 274,300 11,032,346 ------------ CONSUMER FINANCE-2.6% Capital One Financial Corporation 96,000 6,654,720 First Marblehead Corporation (The)* 91,100 3,822,556 ------------ 10,477,276 ------------ ELECTRONIC EQUIPMENT & INSTRUMENTS-2.0% Celestica Inc.* 347,700 5,963,055 Symbol Technologies, Inc. 156,200 2,044,658 ------------ 8,007,713 ------------ ENERGY EQUIPMENT & SERVICES-1.8% National-Oilwell, Inc.* 218,500 7,308,825 ------------ FOOD & STAPLES RETAILING-1.5% CVS Corp. 147,100 6,159,077 ------------ HEALTH CARE EQUIPMENT & SUPPLIES-2.6% Given Imaging Ltd.* 65,900 2,268,278 Kinetic Concepts, Inc.* 95,400 4,285,368 Varian Medical Systems, Inc.* 61,500 4,244,115 ------------ 10,797,761 ------------ HEALTH CARE PROVIDERS & SERVICES-6.6 AMERIGROUP Corporation* 81,500 3,908,740 Anthem, Inc.* 69,850 5,760,530 Aetna Inc. 40,600 3,483,480 LifePoint Hospitals, Inc.* 83,500 2,789,735 PacifiCare Health Systems, Inc.* 91,300 2,791,041 Quest Diagnostics Incorporated 100,400 8,240,832 ------------ 26,974,358 ------------ HOTELS, RESTAURANTS & LEISURE-1.1% Royal Caribbean Cruises Ltd. 110,800 4,736,700 ------------ INDUSTRIAL CONGLOMERATES-2.0% Tyco International Ltd. 260,200 8,066,200 ------------ INFORMATION TECHNOLOGY SERVICES-2.3% Cognizant Technology Solutions Corporation Cl. A* 181,800 5,008,590 First Data Corporation 101,800 4,541,298 ------------ 9,549,888 ------------ INSURANCE-2.5% AFLAC INCORPORATED 109,850 4,354,454 MGIC Investment Corporation 85,050 6,038,550 ------------ 10,393,004 ------------ INTERNET & CATALOG RETAIL-5.3% eBay Inc.* 131,410 10,293,345 NetFlix Inc.* 405,500 8,312,750 Priceline.com* 119,600 2,832,128 ------------ 21,438,223 ------------ INTERNET SOFTWARE & SERVICES-4.2% Yahoo! Inc. * 559,500 17,232,600 ------------ MEDIA-5.4% Pixar, Inc* 76,200 5,199,888 Sirius Satellite Radio Inc.* 1,039,000 2,628,670 Time Warner Inc.* 594,800 9,903,420 XM Satellite Radio Holdings Inc. Cl. A* 159,800 4,217,122 ------------ 21,949,100 ------------ MEDICAL DEVICES-1.0% Advanced Medical Optics, Inc.* 110,950 4,221,648 ------------ METALS & MINING-3.6% Peabody Energy Corporation 95,100 5,342,718 United States Steel Corporation 242,650 9,254,671 ------------ 14,597,389 ------------ OFFICE EQUIPMENT-1.5% Zebra Technologies Corporation* 75,700 6,255,091 ------------ OIL & GAS-4.2% BP PLC Sponsored ADR# 75,200 4,238,272 EOG Resources, Inc. 115,200 7,320,960 Talisman Energy Inc. 99,600 2,374,464 Teekay Shipping Corporation 79,600 3,166,488 ------------ 17,100,184 ------------ PHARMACEUTICALS-6.6% Allergan, Inc. 86,100 6,512,604 IVAX Corporation* 234,800 5,599,980 Pfizer Inc. 255,010 8,150,120 Teva Pharmaceutical Industries Ltd.ADR# 219,400 6,494,240 ------------ 26,756,944 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT-7.1% Applied Materials, Inc.* 248,800 4,222,136 Broadcom Corporation Cl. A * 280,900 9,932,624 Kulicke & Soffa Industries, Inc.* 550,900 4,302,529 National Semiconductor Corporation* 330,400 5,666,360 Novellus Systems, Inc. * 183,450 4,953,150 ------------ 29,076,799 ------------ SPECIALTY RETAIL-3.7% Aeropostale, Inc.* 127,350 3,881,628 Bed Bath & Beyond Inc.* 125,200 4,430,828 Tiffany & Co. 113,100 4,043,325 Tractor Supply Company* 80,700 2,926,182 ------------ 15,281,963 ------------ SOFTWARE-9.2% Activision, Inc* 345,800 5,065,970 Microsoft Corporation 565,500 16,094,130 Red Hat, Inc.* 625,300 10,705,136 Take-Two Interactive Software, Inc.* 180,300 5,646,996 ------------ 37,512,232 ------------ TEXTILES, APPAREL & LUXURY GOODS-1.1% Coach, Inc.* 104,200 4,458,717 ------------ TRANSPORTATION-1.0% Burlington Northern Santa Fe Corp. 116,300 4,126,324 ------------ WIRELESS TELECOMMUNICATION SERVICES-.8% SpectraSite, Inc.* 71,900 3,091,700 ------------ Total Common Stocks (Cost $383,475,822) 405,168,724 ------------ Principal Amount Short-Term Investments-.7% ------------ U.S. Agency Obligations Federal Home Loan Banks, 1.23%, 8/2/04 (Cost $2,799,809) $ 2,800,000 2,799,809 ------------ Total Investments (Cost $386,275,631)(a) 99.9% 407,968,533 Other Assets in Excess of liabilities 0.1 349,321 ------------ ------------ Net Assets 100.0% $408,317,854 ============ ============ * Non-income producing securities. # American Depositary Receipts. (a) At July 31, 2004, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $386,275,631, amounted to $21,692,902 which consisted of aggregate gross unrealized appreciation of $40,927,760 and aggregate gross unrealized depreciation of $19,234,858. The Alger Funds Alger Health Sciences Fund Schedule of Investments (Unaudited) July 31, 2004 Common Stocks-97.5% Shares Value ----------- ----------- BIOTECHNOLOGY-21.8% Biogen Idec Inc.* 10,000 $ 600,000 Celgene Corporation* 5,800 309,314 Cubist Pharmaceuticals, Inc.* 18,000 186,840 DOV Pharmaceutical, Inc.* 20,000 260,000 Encysive Pharmaceuticals Inc.* 22,000 135,740 Genentech, Inc.* 12,000 584,160 Gen-Probe Incorporated* 8,500 318,070 Genzyme Corporation General Division* 8,000 410,240 Gilead Sciences, Inc. * 8,000 517,120 ImClone Systems Incorporated* 6,000 353,520 Incyte Corporation* 20,000 123,000 Ligand Pharmaceuticals Incorporated Cl. B* 12,500 172,625 Onyx Pharmaceuticals, Inc.* 8,000 273,040 OSI Pharmaceuticals, Inc.* 6,000 360,600 QLT Inc.* 16,500 296,175 Serologicals Corporation* 13,000 254,800 Vicuron Pharmaceuticals Inc.* 17,000 171,020 ----------- 5,326,264 ----------- FOOD & STAPLES RETAILING-1.4% NeighborCare, Inc.* 13,000 333,320 ----------- HEALTH CARE-.4% HEALTHSOUTH Corporation* 20,000 108,000 ----------- HEALTH CARE EQUIPMENT & SUPPLIES-14.9% Animas Corporation* 18,000 273,960 Beckman Coulter, Inc. 5,500 303,435 Biomet, Inc. 5,000 219,950 C.R. Bard, Inc. 5,000 276,000 DENTSPLY International Inc. 5,000 243,150 Exactech, Inc.* 4,900 96,138 Fisher Scientific International Inc.* 6,500 378,300 Guidant Corporation 6,000 331,920 Hologic, Inc.* 10,000 199,200 Illumina, Inc.* 38,000 195,700 INAMED Corporation* 5,325 288,509 Kinetic Concepts, Inc.* 6,000 269,520 Mentor Corporation 8,500 267,665 St. Jude Medical, Inc.* 4,500 306,585 ----------- 3,650,032 ----------- HEALTH CARE PROVIDERS & SERVICES-20.7% Accredo Health, Incorporated* 6,500 210,600 American Healthways, Inc.* 5,000 136,150 AMERIGROUP Corporation* 6,000 287,760 Anthem, Inc.* 6,000 494,820 Centene Corporation* 9,000 351,000 Covance Inc.* 7,000 256,830 HCA Inc. 11,000 425,150 HealthStream, Inc.* 30,300 53,358 LifePoint Hospitals, Inc.* 14,000 467,740 Psychiatric Solutions, Inc.* 10,700 272,957 Sierra Health Services, Inc* 8,000 353,600 Sunrise Senior Living Inc.* 7,000 247,100 UnitedHealth Group Incorporated 6,000 377,400 VCA Antech, Inc.* 5,500 231,165 Ventana Medical Systems, Inc.* 6,500 324,545 Ventiv Health, Inc.* 20,000 304,800 Wellcare Health Plans Inc.* 13,000 254,800 ----------- 5,049,775 ----------- INSURANCE-1.4% American Medical Security Group, Inc.* 13,000 330,330 ----------- MEDICAL DEVICES-1.9% Advanced Medical Optics, Inc.* 12,000 456,600 ----------- PHARMACEUTICALS-35.0% Abbott Laboratories 12,000 472,200 Allergan, Inc. 7,500 567,300 Anika Therapeutics, Inc.* 13,000 193,050 AstraZeneca PLC Sponsored ADR# 9,000 404,280 Aventis S.A 7,000 549,850 Bone Care International , Inc. * 10,000 250,900 Cortex Pharmaceuticals, Inc.* 45,000 99,000 Elan Corporation PLC Sponsored ADR*# 37,000 760,350 Eli Lilly and Company 11,000 700,920 Eyetech Pharmaceuticals Inc.* 3,300 122,430 GlaxoSmithKline PLC Sponsored ADR# 14,000 573,300 IVAX Corporation* 25,000 596,250 Johnson & Johnson 4,000 221,080 Medicines Company* 8,000 211,680 Medicis Pharmaceutical Corporation Cl. A 5,000 178,850 Novartis AG ADR# 16,000 714,560 Novo Nordisk A/S Cl. B ADR# 9,000 460,080 Pfizer Inc. 24,010 767,360 Sepracor Inc.* 11,500 528,655 Teva Pharmaceutical Industries Ltd. ADR# 5,768 170,733 ----------- 8,542,828 ----------- Total Common Stocks (Cost $23,659,999) 23,797,149 ----------- Short-Term Investments-2.2% U.S. Government Obligations U.S. Treasury Bills, 1.175%, 8/19/04 $ 250,000 249,845 1.22%, 9/2/04 300,000 299,664 Total Short-Term Investments (Cost $549,509) 549,509 ----------- Total Investments (Cost $24,209,508)(a) 99.7% 24,346,658 Other Assets in Excess of liabilities 0.3 80,138 ----------- ----------- Net Assets 100.0% $24,426,796 =========== =========== * Non-income producing securities. # American Depositary Receipts. (a) At July 31, 2004, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $24,209,508, amounted to $137,150 which consisted of aggregate gross unrealized appreciation of $1,326,012 and aggregate gross unrealized depreciation of $1,188,862. The Alger Funds Alger SmallCap and MidCap Growth Fund Schedule of Investments (Unaudited) July 31, 2004 Common Stocks-95.3% Shares Value ------------ ------------ AEROSPACE & DEFENSE-1.3% Alliant Techsystems Inc.* 2,800 $ 176,288 ------------ AIR FREIGHT & LOGISTICS-1.1% J.B. Hunt Transport Services, Inc. 4,100 157,481 ------------ APPAREL-1.0% Columbia Sportswear Company 2,600 142,350 ------------ BIOTECHNOLOGY-4.0% Cubist Pharmaceuticals, Inc.* 11,450 118,851 Invitrogen Corporation* 1,700 89,216 Onyx Pharmaceuticals, Inc.* 3,850 131,401 Serologicals Corporation* 6,400 125,440 Telik, Inc.* 4,850 95,836 ------------ 560,744 ------------ CAPITAL MARKETS-4.4% Affiliated Managers Group, Inc.* 3,412 156,645 Investors Financial Services Corp. 4,250 194,140 National Financial Partners Corporation 4,500 151,560 Piper Jaffray Companies, Inc* 2,800 114,100 ------------ 616,445 ------------ COMMERCIAL BANKS-1.2% Compass Bancshares, Inc. 3,750 165,338 ------------ COMMERCIAL SERVICES & SUPPLIES-4.1% Corinthian Colleges, Inc.* 6,000 112,320 CoStar Group Inc.* 3,900 165,555 Gevity HR, Inc. 7,250 150,655 Monster Worldwide Inc.* 6,350 140,272 ------------ 568,802 ------------ COMMUNICATION EQUIPMENT-2.5% Comverse Technology, Inc.* 9,000 153,540 F5 Networks, Inc.* 2,100 54,999 Sierra Wireless Inc.* 4,600 144,762 ------------ 353,301 ------------ COMPUTERS & PERIPHERALS-.8% Silicon Image, Inc.* 9,300 111,507 ------------ COMPUTER SERVICES-1.5% Intelligroup,Inc.* 17,050 66,154 Open Solutions Inc.* 6,100 138,104 ------------ 204,258 ------------ CONSUMER FINANCE-1.7% First Marblehead Corporation (The)* 5,500 230,780 ------------ ELECTRICAL EQUIPMENT-1.4% AMETEK, Inc. 6,350 195,834 ------------ ELECTRIC AND ELECTRONIC EQUIPMENT-1.1% Roper Industries, Inc. 2,650 148,400 ------------ ELECTRONIC EQUIPMENT & INSTRUMENTS-1.5% Trimble Navigation Limited* 7,500 208,275 ------------ ENERGY EQUIPMENT & SERVICES-2.4% Cooper Cameron Corporation* 4,400 224,796 National-Oilwell, Inc.* 3,000 100,350 ------------ 325,146 ------------ FOOD & STAPLES RETAILING-1.9% NeighborCare, Inc.* 6,000 153,840 Whole Foods Market, Inc. 1,400 115,248 ------------ 269,088 ------------ HEALTH CARE EQUIPMENT & SUPPLIES-5.5% Animas Corporation* 6,300 95,886 INAMED Corporation* 3,100 167,958 Intuitive Surgical, Inc.* 8,200 187,616 Kinetic Concepts, Inc.* 3,650 163,958 Wright Medical Group, Inc.* 5,100 140,913 ------------ 756,331 ------------ HEALTH CARE PROVIDERS & SERVICES-7.4% Accredo Health, Incorporated* 4,450 144,180 Centene Corporation* 4,400 171,600 Community Health Systems Inc. 5,400 132,894 Psychiatric Solutions, Inc.* 6,750 172,193 Sunrise Senior Living Inc.* 4,000 141,200 VCA Antech, Inc.* 3,300 138,699 Wellcare Health Plans Inc.* 6,650 130,340 ------------ 1,031,106 ------------ HOTELS, RESTAURANTS & LEISURE-3.9% Applebee's International, Inc. 7,450 198,468 Multimedia Games, Inc.* 4,400 83,292 P.F. Chang's China Bistro, Inc.* 2,950 131,069 Station Casinos, Inc. 3,100 133,920 ------------ 546,749 ------------ INFORMATION TECHNOLOGY SERVICES-3.6% Alliance Data Systems Corporation* 4,850 192,594 Global Payments Inc. 3,700 168,905 Kanbay International Inc.* 8,600 133,386 ------------ 494,885 ------------ INSURANCE-.8 Axis Capital Holdings Limited 4,300 110,510 ------------ INTERNET SOFTWARE & SERVICES-3.6% aQuantive, Inc.* 11,500 98,210 Chordiant Software Inc.* 31,400 97,340 IVillage Inc. 8,400 43,428 SonicWALL, Inc.* 20,100 133,263 ValueClick, Inc.* 11,850 123,003 ------------ 495,244 ------------ LEISURE EQUIPMENT & PRODUCTS-.8% LIFE TIME FITNESS, Inc.* 4,700 108,805 ------------ MACHINERY-2.4% Actuant Corporation Cl. A* 5,200 189,592 Terex Corporation* 3,550 138,131 ------------ 327,723 ------------ MACHINERY - OIL WELL EQUIPMENT & SERVICES-.5% Patterson-UTI Energy, Inc. 3,800 69,274 ------------ MEDIA-3.2% Media General, Inc. Cl. A 1,700 101,592 Playboy Enterprises, Inc. Cl. B* 10,550 117,738 Sirius Satellite Radio Inc.* 47,500 120,175 Westwood One, Inc.* 4,600 109,480 ------------ 448,985 ------------ MEDICAL DEVICES-1.7% Advanced Medical Optics, Inc.* 6,000 228,300 ------------ OIL & GAS-3.8% EOG Resources, Inc. 3,200 203,360 Evergreen Resources, Inc.* 5,350 218,922 General Maritime Corp.* 3,600 106,776 ------------ 529,058 ------------ PAPER & FOREST PRODUCTS-1.4% Louisiana-Pacific Corporation 8,250 195,360 ------------ PHARMACEUTICALS-4.0% Bone Care International , Inc. * 6,000 150,540 Eyetech Pharmaceuticals Inc.* 2,250 83,475 IVAX Corporation* 9,000 214,650 Sepracor Inc.* 2,200 101,134 ------------ 549,799 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT-5.0% Axcelis Technologies, Inc.* 10,900 101,697 Brooks Automation, Inc.* 6,500 93,665 Fairchild Semiconductor International, Inc.* 6,500 95,485 International Rectifier Corporation* 4,500 176,400 Intersil Corporation Cl. A 4,900 90,013 Semtech Corporation* 7,150 141,928 ------------ 699,188 ------------ SEMICONDUCTOR CAPITAL EQUIPMENT-.7% SiRF Technology Holdings, Inc.* 8,500 95,115 ------------ SOFTWARE-4.0% Hyperion Solutions Corporation* 4,400 180,488 Mercury Interactive Corporation* 3,050 111,508 Quest Software, Inc. * 8,900 107,334 Take-Two Interactive Software, Inc.* 4,850 151,902 ------------ 551,232 ------------ SPECIALTY RETAIL-5.5% Abercrombie & Fitch Co. Cl. A 2,900 106,952 Advance Auto Parts, Inc* 3,200 118,784 AnnTaylor Stores Corporation* 7,050 189,222 PETsMART, Inc. 5,550 172,106 Williams-Sonoma, Inc. * 5,300 172,197 ------------ 759,261 ------------ TEXTILES, APPAREL & LUXURY GOODS-1.3% Coach, Inc.* 4,100 175,434 ------------ THRIFTS & MORTGAGE FINANCE-1.0% Doral Financial Corp. 3,450 135,413 ------------ TRADING COMPANIES & DISTRIBUTORS-1.3% MSC Industrial Direct Co., Cl. A 5,850 183,104 ------------ TRANSPORTATION SERVICES-.8% Sirva Inc.* 4,800 112,224 ------------ WIRELESS TELECOMMUNICATION SERVICES-1.2% American Tower Corporation Cl. A* 11,400 164,844 ------------ Total Common Stocks (Cost $11,521,757) 13,201,981 ------------ Short-Term Investments-3.6% U.S. Government Obligations U.S. Treasury Bills, 1.11%, 8/19/04 $ 400,000 399,766 1.19%, 8/26/04 100,000 99,914 ------------ Total Short-Term Investments (Cost $499,680) 499,680 ------------ Total Investments (Cost $12,021,437)(a) 98.9% 13,701,661 Other Assets in Excess of liabilities 1.1 159,060 ------------ ------------ Net Assets 100.0% 13,860,721 ============ ============ * Non-income producing securities. (a) At July 31, 2004, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $12,021,437, amounted to $1,680,224 which consisted of aggregate gross unrealized appreciation of $2,241,136 and aggregate gross unrealized depreciation of $560,912. The Alger Funds Alger Money Market Fund Schedule of Investments(Unaudited) July 31, 2004
PRINCIPAL AMOUNT VALUE ----------- ----------- U.S. Agency Obligations-99.8% Federal Home Loan Banks, 1.23%, 8/2/04 $ 2,900,000 2,900,000 1.54%, 10/28/04 10,000,000 9,962,783 Federal Home Loan Mortgage Corporation, 1.14%, 8/2/04 10,000,000 10,000,000 1.28%, 8/10/04 10,000,000 9,997,155 1.03%, 8/23/04 5,000,000 4,996,996 1.34%, 9/1/04 10,000,000 9,988,833 Federal National Mortgage Association, 1.22%, 8/10/04 10,000,000 9,997,289 1.35%, 8/25/04 5,000,000 4,995,688 1.38%, 9/20/04 10,000,000 9,981,217 1.58%, 11/18/04 10,000,000 9,952,600 ---------- Total U.S. Agency Obligations (Cost $82,772,561) 82,772,561 ---------- REPURCHASE AGREEMENTS-.5% Securities held Under Repurchase Agreement, 1.10%, 8/2/04 with State Street Bank and Trust Company dtd 7/30/04, repurchase price $400,037, collaterized by Federal Home Loan Mortgage Corp. (par value $410,000, 2.375% due 1/23/06), (Cost $400,000) 400,000 400,000 ------- Total Investments (Cost $83,172,561)(a) 100.3% 83,172,561 Liabilities in Excess of Other Assets -0.3 (211,087) ----- --------- Net Assets 100.0% $82,961,474 =========== ===========
a) At July 31, 2004, the net unrealized appreciation on investments, based on cost for federal income tax purposes was the same as the cost for financial reporting purposes. 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 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/Dan C. Chung Dan C. Chung President Date: September 27, 2004 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/Dan C. Chung Dan C. Chung President Date: September 27, 2004 By /s/Frederick A. Blum Frederick A. Blum Treasurer Date: September 27, 2004