NPORT-EX 2 algerfundspoi.htm SOI

 

THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND 

Schedule of Investments July 31, 2020 (Unaudited)

 

COMMON STOCKS—97.4%  SHARES   VALUE 
AEROSPACE & DEFENSE—0.4%          
Airbus SE   48,174   $3,526,891 
TransDigm Group, Inc.   23,895    10,312,604 
         13,839,495 
APPAREL ACCESSORIES & LUXURY GOODS—0.3%          
LVMH Moet Hennessy Louis Vuitton SE   24,765    10,771,177 
           
APPLICATION SOFTWARE—8.2%          
Adobe, Inc.*   240,143    106,700,338 
Cadence Design Systems, Inc.*   75,643    8,263,998 
Intuit, Inc.   77,812    23,839,262 
Palantir Technologies, Inc., Cl. A*,@,(a)   153,282    881,371 
RingCentral, Inc., Cl. A*   87,527    25,406,462 
salesforce.com, Inc.*   568,509    110,773,979 
         275,865,410 
AUTOMOBILE MANUFACTURERS—0.5%          
Tesla, Inc.*   10,906    15,603,869 
           
AUTOMOTIVE RETAIL—0.1%          
Carvana Co., Cl. A*   13,913    2,155,819 
           
BIOTECHNOLOGY—2.6%          
BioMarin Pharmaceutical, Inc.*   193,192    23,146,333 
Genmab AS#,*   258,024    8,821,841 
Sarepta Therapeutics, Inc.*   73,628    11,303,371 
Vertex Pharmaceuticals, Inc.*   160,979    43,786,287 
         87,057,832 
CASINOS & GAMING—0.6%          
DraftKings, Inc., Cl. A*   240,365    8,022,182 
Las Vegas Sands Corp.   299,922    13,088,596 
         21,110,778 
DATA PROCESSING & OUTSOURCED SERVICES—11.3%          
Fidelity National Information Services, Inc.   756,430    110,673,273 
Fiserv, Inc.*   239,089    23,858,691 
PayPal Holdings, Inc.*   448,864    88,008,765 
Visa, Inc., Cl. A   813,877    154,962,181 
         377,502,910 
DIVERSIFIED BANKS—0.4%          
Bank of America Corp.   415,387    10,334,828 
JPMorgan Chase & Co.   35,737    3,453,624 
         13,788,452 
DIVERSIFIED SUPPORT SERVICES—0.7%          
Cintas Corp.   79,941    24,131,790 
           
ENVIRONMENTAL & FACILITIES SERVICES—0.4%          
Waste Connections, Inc.   121,931    12,482,076 
           
FINANCIAL EXCHANGES & DATA—2.3%          
Intercontinental Exchange, Inc.   394,330    38,163,257 
S&P Global, Inc.   115,902    40,594,676 
         78,757,933 

 

- 1 -

 

  

THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)

 

COMMON STOCKS—97.4% (CONT.)  SHARES   VALUE 
FOOD DISTRIBUTORS—0.3%          
Sysco Corp.   202,089   $10,680,404 
           
FOOTWEAR—0.3%          
NIKE, Inc., Cl. B   112,914    11,021,536 
           
HEALTHCARE EQUIPMENT—6.8%          
Boston Scientific Corp.*   1,652,647    63,742,595 
Danaher Corp.   724,079    147,567,300 
DexCom, Inc.*   40,629    17,695,555 
         229,005,450 
HEALTHCARE SERVICES—0.3%          
Guardant Health, Inc.*   114,273    9,733,774 
           
HEALTHCARE SUPPLIES—0.4%          
Align Technology, Inc.*   46,259    13,591,819 
           
HOME IMPROVEMENT RETAIL—2.2%          
Lowe’s Cos., Inc.   485,203    72,251,579 
           
INDUSTRIAL GASES—0.7%          
Air Products & Chemicals, Inc.   85,007    24,365,556 
           
INTERACTIVE MEDIA & SERVICES—8.9%          
Alphabet, Inc., Cl. C*   76,926    114,078,181 
Baidu, Inc.#,*   44,175    5,274,495 
Facebook, Inc., Cl. A*   565,714    143,504,670 
Pinterest, Inc., Cl. A*   335,224    11,494,831 
Tencent Holdings Ltd.   365,950    25,103,679 
        299,455,856 
INTERNET & DIRECT MARKETING RETAIL—15.4%          
Alibaba Group Holding Ltd.#,*   581,717    146,022,601 
Altaba, Inc.*,(a),@   259,825    5,762,919 
Amazon.com, Inc.*   108,148    342,253,813 
MercadoLibre, Inc.*   18,861    21,211,458 
         515,250,791 
INTERNET SERVICES & INFRASTRUCTURE—1.2%          
Shopify, Inc., Cl. A*   6,647    6,806,528 
Twilio, Inc., Cl. A*   81,177    22,520,123 
VeriSign, Inc.*   53,939    11,417,808 
         40,744,459 
INVESTMENT BANKING & BROKERAGE—0.4%          
Morgan Stanley   286,445    14,001,432 
           
MANAGED HEALTHCARE—0.9%          
UnitedHealth Group, Inc.   98,826    29,922,536 
           
METAL & GLASS CONTAINERS—0.5%          
Ball Corp.   215,982    15,902,755 
           
MOVIES & ENTERTAINMENT—1.3%          
Live Nation Entertainment, Inc.*   241,800    11,318,658 
Netflix, Inc.*   65,305    31,926,308 
         43,244,966 

 

- 2 -

 

  

THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)

 

COMMON STOCKS—97.4% (CONT.)  SHARES   VALUE 
PHARMACEUTICALS—0.5%          
GW Pharmaceuticals PLC#,*   97,075   $12,389,683 
Novartis AG#   44,446    3,650,794 
         16,040,477 
PROPERTY & CASUALTY INSURANCE—0.7%          
The Progressive Corp.   270,780    24,462,265 
           
RAILROADS—1.2%          
Union Pacific Corp.   236,124    40,932,095 
           
RESEARCH & CONSULTING SERVICES—0.7%          
CoStar Group, Inc.*   24,187    20,553,145 
TransUnion   44,925    4,023,932 
         24,577,077 
RESTAURANTS—0.5%          
Chipotle Mexican Grill, Inc., Cl. A*   14,968    17,290,435 
SEMICONDUCTOR EQUIPMENT—1.5%          
ASML Holding NV   13,127    4,643,282 
Lam Research Corp.   124,773    47,059,385 
         51,702,667 
SEMICONDUCTORS—4.9%          
Advanced Micro Devices, Inc.*   133,119    10,307,404 
Micron Technology, Inc.*   111,937    5,603,007 
NVIDIA Corp.   165,279    70,175,811 
NXP Semiconductors NV   434,174    51,028,470 
QUALCOMM, Inc.   90,841    9,593,718 
Taiwan Semiconductor Manufacturing Co., Ltd.#   220,980    17,433,112 
         164,141,522 
SPECIALTY CHEMICALS—1.3%          
The Sherwin-Williams Co.   65,572    42,485,410 
SYSTEMS SOFTWARE—8.7%          
Microsoft Corp.   1,283,667    263,164,571 
Palo Alto Networks, Inc.*   78,353    20,052,100 
ServiceNow, Inc.*   20,790    9,130,968 
         292,347,639 
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—6.8%          
Apple, Inc.   533,821    226,895,278 
WIRELESS TELECOMMUNICATION SERVICES—3.2%          
T-Mobile US, Inc.*   1,009,871    108,439,948 
TOTAL COMMON STOCKS          
(Cost $1,895,438,537)        3,271,555,267 
           
PREFERRED STOCKS—0.1%  SHARES   VALUE 
APPLICATION SOFTWARE—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 
TOTAL PREFERRED STOCKS          
(Cost $4,665,771)        4,062,807 

 

- 3 -

 

  

THE ALGER FUNDS | ALGER CAPITAL APPRECIATION FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)      

 

REAL ESTATE INVESTMENT TRUST—1.1%  SHARES   VALUE 
SPECIALIZED—1.1%          
Crown Castle International Corp.   228,253   $38,049,775 
(Cost $28,830,574)        38,049,775 
Total Investments          
(Cost $1,928,934,882)   98.6%  $3,313,667,849 
Unaffiliated Securities (Cost $1,928,934,882)        3,313,667,849 
Other Assets in Excess of Liabilities   1.4%   46,785,791 
NET ASSETS   100.0%  $3,360,453,640 

 

#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. Sales or transfers of the investment may be restricted only to qualified buyers.

 

           % of net assets       % of net assets 
   Acquisition  Acquisition    (Acquisition   Market   as of 
Security  Date(s)  Cost    Date)   Value   7/31/2020 
Altaba, Inc.  10/24/18  $805,470     0.03%  $1,016,243    0.03%
Altaba, Inc.  10/25/18   1,188,343     0.04%   1,492,204    0.04%
Altaba, Inc.  10/29/18   1,156,773     0.04%   1,512,543    0.05%
Altaba, Inc.  10/30/18   751,641     0.03%   1,001,316    0.03%
Altaba, Inc.  10/31/18   271,272     0.01%   344,012    0.01%
Altaba, Inc.  11/6/18   321,297     0.01%   396,601    0.01%
Palantir Technologies, Inc., Cl. A  10/7/14   997,406     0.05%   881,371    0.03%
Palantir Technologies, Inc., Cl. B  10/7/14   4,128,004     0.22%   3,594,498    0.11%
Palantir Technologies, Inc., Cl. D  10/14/14   537,767     0.03%   468,309    0.01%
Total                $10,707,097    0.32%

 

See Notes to Financial Statements.

 

- 4 -

 

 

THE ALGER FUNDS | ALGER 25 FUND

Schedule of Investments July 31, 2020 (Unaudited)

 

COMMON STOCKS—97.3%  SHARES   VALUE 
APPLICATION SOFTWARE—9.3%          
Adobe, Inc.*   2,373   $1,054,371 
Avalara, Inc.*   1,725    231,926 
salesforce.com, Inc.*   3,850    750,173 
         2,036,470 
CASINOS & GAMING—1.4%          
DraftKings, Inc., Cl. A*   9,457    315,627 
           
DATA PROCESSING & OUTSOURCED SERVICES—9.8%          
PayPal Holdings, Inc.*   5,185    1,016,623 
Visa, Inc., Cl. A   5,960    1,134,784 
         2,151,407 
DIVERSIFIED SUPPORT SERVICES—4.1%          
Cintas Corp.   2,987    901,686 
           
FINANCIAL EXCHANGES & DATA—3.0%          
S&P Global, Inc.   1,906    667,576 
           
HEALTHCARE EQUIPMENT—2.1%          
DexCom, Inc.*   1,035    450,784 
           
INTERACTIVE MEDIA & SERVICES—8.9%          
Alphabet, Inc., Cl. C*   723    1,072,180 
Facebook, Inc., Cl. A*   3,483    883,533 
         1,955,713 
INTERNET & DIRECT MARKETING RETAIL—15.6%          
Alibaba Group Holding Ltd.#,*   4,278    1,073,864 
Amazon.com, Inc.*   737    2,332,369 
         3,406,233 
MANAGED HEALTHCARE—3.2%          
UnitedHealth Group, Inc.   2,307    698,513 
           
PROPERTY & CASUALTY INSURANCE—3.3%          
The Progressive Corp.   7,984    721,275 
           
RESTAURANTS—2.0%          
Starbucks Corp.   5,631    430,940 
           
SEMICONDUCTOR EQUIPMENT—3.0%          
Applied Materials, Inc.   10,233    658,289 
           
SEMICONDUCTORS—8.1%          
NVIDIA Corp.   2,043    867,438 
NXP Semiconductors NV   4,957    582,596 
Taiwan Semiconductor Manufacturing Co., Ltd.#   4,236    334,178 
         1,784,212 
SPECIALTY CHEMICALS—3.4%          
The Sherwin-Williams Co.   1,136    736,037 
           
SYSTEMS SOFTWARE—9.0%          
Microsoft Corp.   9,617    1,971,581 
           
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—7.1%          
Apple, Inc.   3,681    1,564,572 

 

- 5 -

 

 

THE ALGER FUNDS | ALGER 25 FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)

 

COMMON STOCKS—97.3% (CONT.)  SHARES   VALUE 
WIRELESS TELECOMMUNICATION SERVICES—4.0%          
T-Mobile US, Inc.*   8,065   $866,020 
           
TOTAL COMMON STOCKS          
(Cost $14,574,580)        21,316,935 

 

REAL ESTATE INVESTMENT TRUST—3.2%  SHARES VALUE 
SPECIALIZED—3.2%          
Crown Castle International Corp.   4,273    712,309 
(Cost $586,749)        712,309 
Total Investments          
(Cost $15,161,329)   100.5%  $22,029,244 
Unaffiliated Securities (Cost $15,161,329)        22,029,244 
Liabilities in Excess of Other Assets   (0.5)%   (105,572)
NET ASSETS   100.0%  $21,923,672 

 

*Non-income producing security.
#American Depositary Receipts.

 

See Notes to Financial Statements.

 

- 6 -

 

 

THE ALGER FUNDS | ALGER 35 FUND

Schedule of Investments July 31, 2020 (Unaudited)

 

COMMON STOCKS—95.1%  SHARES   VALUE 
AEROSPACE & DEFENSE—0.6%          
HEICO Corp.   884   $84,970 
           
APPLICATION SOFTWARE—2.3%          
Adobe, Inc.*   310    137,739 
Avalara, Inc.*   1,338    179,894 
         317,633 
AUTOMOBILE MANUFACTURERS—1.8%          
Tesla, Inc.*   172    246,091 
           
CASINOS & GAMING—1.2%          
DraftKings, Inc., Cl. A*   5,022    167,609 
           
DATA PROCESSING & OUTSOURCED SERVICES—11.1%          
Fiserv, Inc.*   2,530    252,469 
PayPal Holdings, Inc.*   2,607    511,154 
Square, Inc., Cl. A*   2,353    305,537 
Visa, Inc., Cl. A   2,359    449,154 
         1,518,314 
FINANCIAL EXCHANGES & DATA—1.2%          
S&P Global, Inc.   473    165,668 
           
FOOD DISTRIBUTORS—2.7%          
US Foods Holding Corp.*   18,366    372,830 
           
HEALTHCARE EQUIPMENT—8.0%          
DexCom, Inc.*   622    270,906 
Insulet Corp.*   1,274    259,081 
Intuitive Surgical, Inc.*   618    423,601 
Tandem Diabetes Care, Inc.*   1,391    145,304 
         1,098,892 
HEALTHCARE TECHNOLOGY—5.1%          
Teladoc Health, Inc.*   1,175    279,215 
Veeva Systems, Inc., Cl. A*   1,579    417,756 
         696,971 
INTERACTIVE MEDIA & SERVICES—1.9%          
Alphabet, Inc., Cl. A*   177    263,367 
           
INTERNET & DIRECT MARKETING RETAIL—14.0%          
Amazon.com, Inc.*   546    1,727,916 
MercadoLibre, Inc.*   173    194,559 
         1,922,475 
LEISURE FACILITIES—3.5%          
Vail Resorts, Inc.   2,466    473,546 
           
LIFE SCIENCES TOOLS & SERVICES—2.3%          
Bio-Techne Corp.   1,136    312,582 
           
MOVIES & ENTERTAINMENT—2.9%          
Netflix, Inc.*   801    391,593 
           
REGIONAL BANKS—1.3%          
SVB Financial Group*   781    175,155 
           
RESEARCH & CONSULTING SERVICES—2.2%          
CoStar Group, Inc.*   354    300,815 

 

- 7 -

 

 

THE ALGER FUNDS | ALGER 35 FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)

 

COMMON STOCKS—95.1% (CONT.)  SHARES   VALUE 
SEMICONDUCTOR EQUIPMENT—4.3%          
Applied Materials, Inc.   9,165   $589,585 
           
SEMICONDUCTORS—5.7%          
Advanced Micro Devices, Inc.*   6,139    475,342 
Universal Display Corp.   1,717    299,531 
         774,873 
SYSTEMS SOFTWARE—13.3%          
Crowdstrike Holdings, Inc., Cl. A*   3,871    438,197 
Microsoft Corp.   4,462    914,754 
Palo Alto Networks, Inc.*   528    135,126 
ServiceNow, Inc.*   759    333,353 
         1,821,430 
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—8.4%          
Apple, Inc.   2,703    1,148,883 
           
WIRELESS TELECOMMUNICATION SERVICES—1.3%          
T-Mobile US, Inc.*   1,636    175,674 
           
TOTAL COMMON STOCKS          
(Cost $8,387,413)        13,018,956 

 

REAL ESTATE INVESTMENT TRUST—2.9%  SHARES   VALUE 
SPECIALIZED—2.9%          
Crown Castle International Corp.   2,366    394,412 
(Cost $290,959)        394,412 
Total Investments          
(Cost $8,678,372)   98.0%  $13,413,368 
Unaffiliated Securities (Cost $8,678,372)        13,413,368 
Other Assets in Excess of Liabilities   2.0%   276,072 
NET ASSETS   100.0%  $13,689,440 

 

*Non-income producing security.

 

See Notes to Financial Statements.

 

- 8 -

 

 

THE ALGER FUNDS | ALGER GROWTH & INCOME FUND

Schedule of Investments July 31, 2020 (Unaudited)

 

COMMON STOCKS—93.8%  SHARES   VALUE 
AEROSPACE & DEFENSE—1.6%          
General Dynamics Corp.   4,078   $598,406 
Raytheon Technologies Corp.   8,937    506,549 
TransDigm Group, Inc.   1,455    627,949 
         1,732,904 
ASSET MANAGEMENT & CUSTODY BANKS—3.6%          
BlackRock, Inc., Cl. A   3,851    2,214,364 
The Blackstone Group, Inc., Cl. A   21,938    1,168,857 
The Carlyle Group, Inc.   22,818    649,628 
         4,032,849 
BIOTECHNOLOGY—2.6%          
AbbVie, Inc.   13,491    1,280,430 
Amgen, Inc.   3,959    968,649 
Gilead Sciences, Inc.   9,368    651,357 
         2,900,436 
BROADCASTING—0.3%          
ViacomCBS, Inc., Cl. B   12,912    336,616 
           
BUILDING PRODUCTS—0.5%          
Johnson Controls International PLC   13,534    520,788 
           
CABLE & SATELLITE—1.4%          
Comcast Corp., Cl. A   36,605    1,566,694 
           
COMMODITY CHEMICALS—0.3%          
Dow, Inc.   8,245    338,540 
           
COMMUNICATIONS EQUIPMENT—1.4%          
Cisco Systems, Inc.   32,297    1,521,189 
           
COMPUTER & ELECTRONICS RETAIL—0.5%          
Best Buy Co., Inc.   5,340    531,811 
           
CONSUMER ELECTRONICS—0.6%          
Garmin Ltd.   6,386    629,596 
           
DATA PROCESSING & OUTSOURCED SERVICES—0.7%          
Visa, Inc., Cl. A   4,185    796,824 
           
DIVERSIFIED BANKS—4.8%          
Bank of America Corp.   51,526    1,281,967 
JPMorgan Chase & Co.   38,992    3,768,187 
Wells Fargo & Co.   10,432    253,080 
         5,303,234 
ELECTRIC UTILITIES—0.8%          
NextEra Energy, Inc.   3,270    917,889 
           
ELECTRICAL COMPONENTS & EQUIPMENT—0.8%          
Eaton Corp. PLC   9,174    854,375 
           
FINANCIAL EXCHANGES & DATA—1.1%          
CME Group, Inc., Cl. A   7,229    1,201,315 
           
FOOD DISTRIBUTORS—0.5%          
Sysco Corp.   10,761    568,719 

 

- 9 -

 

 

THE ALGER FUNDS | ALGER GROWTH & INCOME FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)  

 

COMMON STOCKS—93.8% (CONT.)  SHARES   VALUE 
HEALTHCARE EQUIPMENT—0.7%          
Medtronic PLC   7,677   $740,677 
           
HEALTHCARE SERVICES—1.1%          
CVS Health Corp.   19,361    1,218,581 
           
HOME IMPROVEMENT RETAIL—3.5%          
The Home Depot, Inc.   14,637    3,885,977 
           
HOUSEHOLD PRODUCTS—2.0%          
The Procter & Gamble Co.   16,512    2,165,053 
           
HYPERMARKETS & SUPER CENTERS—1.0%          
Walmart, Inc.   8,590    1,111,546 
           
INDUSTRIAL CONGLOMERATES—1.9%          
Honeywell International, Inc.   14,038    2,096,856 
           
INDUSTRIAL GASES—1.5%          
Air Products & Chemicals, Inc.   5,816    1,667,040 
           
INTEGRATED OIL & GAS—1.8%          
Chevron Corp.   7,957    667,911 
Exxon Mobil Corp.   19,218    808,693 
TOTAL SE#   12,782    481,370 
         1,957,974 
INTEGRATED TELECOMMUNICATION SERVICES—2.8%          
AT&T, Inc.   31,054    918,577 
Verizon Communications, Inc.   37,786    2,171,940 
         3,090,517 
INTERACTIVE MEDIA & SERVICES—7.7%          
Alphabet, Inc., Cl. A*   2,002    2,978,876 
Alphabet, Inc., Cl. C*   1,941    2,878,425 
Facebook, Inc., Cl. A*   10,523    2,669,370 
         8,526,671 
INTERNET & DIRECT MARKETING RETAIL—2.8%          
Amazon.com, Inc.*   981    3,104,551 
           
INVESTMENT BANKING & BROKERAGE—2.0%          
Morgan Stanley   45,840    2,240,659 
           
LEISURE FACILITIES—0.6%          
Vail Resorts, Inc.   3,192    612,960 
           
MANAGED HEALTHCARE—2.2%          
UnitedHealth Group, Inc.   8,036    2,433,140 
           
MOVIES & ENTERTAINMENT—0.2%          
Warner Music Group Corp., Cl. A*   9,306    280,576 
           
MULTI-LINE INSURANCE—0.4%          
The Hartford Financial Services Group, Inc.   9,936    420,492 
           
MULTI-UTILITIES—0.7%          
Sempra Energy   6,446    802,269 
           
OIL & GAS EXPLORATION & PRODUCTION—0.6%          
ConocoPhillips   17,070    638,247 

 

- 10 -

 

 

THE ALGER FUNDS | ALGER GROWTH & INCOME FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)

 

COMMON STOCKS—93.8% (CONT.)  SHARES   VALUE 
OIL & GAS REFINING & MARKETING—0.2%          
Valero Energy Corp.   4,876   $274,177 
           
OIL & GAS STORAGE & TRANSPORTATION—0.3%          
ONEOK, Inc.   10,099    281,863 
           
PHARMACEUTICALS—8.1%          
AstraZeneca PLC#   19,380    1,081,016 
Bristol-Myers Squibb Co.   13,462    789,681 
Eli Lilly & Co.   6,696    1,006,342 
GlaxoSmithKline PLC#   19,014    766,644 
Johnson & Johnson   16,211    2,362,916 
Merck & Co., Inc.   10,553    846,773 
Novartis AG#   8,155    669,852 
Pfizer, Inc.   38,801    1,493,062 
         9,016,286 
RAILROADS—0.7%          
Union Pacific Corp.   4,822    835,894 
           
RESTAURANTS—1.1%          
McDonald’s Corp.   4,437    862,020 
Starbucks Corp.   5,237    400,788 
         1,262,808 
SEMICONDUCTOR EQUIPMENT—1.7%          
KLA Corp.   9,338    1,866,013 
           
SEMICONDUCTORS—3.6%          
Broadcom, Inc.   5,840    1,849,820 
QUALCOMM, Inc.   12,840    1,356,032 
Taiwan Semiconductor Manufacturing Co., Ltd.#   10,109    797,499 
         4,003,351 
SOFT DRINKS—3.0%          
PepsiCo, Inc.   13,527    1,862,127 
The Coca-Cola Co.   30,625    1,446,725 
         3,308,852 
SYSTEMS SOFTWARE—10.2%          
Microsoft Corp.   55,492    11,376,414 
           
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—8.4%          
Apple, Inc.   21,975    9,340,254 
           
TOBACCO—1.5%          
Altria Group, Inc.   26,806    1,103,067 
Philip Morris International, Inc.   6,888    529,067 
         1,632,134 
TOTAL COMMON STOCKS
(Cost $49,787,740)		        103,945,611 

 

MASTER LIMITED PARTNERSHIP—0.5%  SHARES   VALUE 
OIL & GAS STORAGE & TRANSPORTATION—0.5%          
Cheniere Energy Partners LP   17,250    584,430 
(Cost $584,260)        584,430 

 

- 11 -

 

 

THE ALGER FUNDS | ALGER GROWTH & INCOME FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)

 

REAL ESTATE INVESTMENT TRUST—4.9%  SHARES   VALUE 
HEALTHCARE—0.6%          
Welltower, Inc.   12,873   $689,478 
           
INDUSTRIAL—0.7%          
Americold Realty Trust   19,006    766,892 
           
MORTGAGE—0.5%          
Blackstone Mortgage Trust, Inc., Cl. A   25,229    607,262 
           
SPECIALIZED—3.1%          
Crown Castle International Corp.   11,141    1,857,204 
CyrusOne, Inc.   9,552    796,828 
Lamar Advertising Co., Cl. A   10,535    692,466 
         3,346,498 
TOTAL REAL ESTATE INVESTMENT TRUST          
(Cost $3,932,872)        5,410,130 
Total Investments          
(Cost $54,304,872)   99.2%  $109,940,171 
Unaffiliated Securities (Cost $54,304,872)        109,940,171 
Other Assets in Excess of Liabilities   0.8%   898,233 
NET ASSETS   100.0%  $110,838,404 

 

#American Depositary Receipts.
*Non-income producing security.

 

See Notes to Financial Statements.

 

- 12 -

 

 

THE ALGER FUNDS | ALGER MID CAP GROWTH FUND

Schedule of Investments July 31, 2020 (Unaudited)

 

COMMON STOCKS—92.7%  SHARES   VALUE 
AEROSPACE & DEFENSE—1.9%          
HEICO Corp.   10,716   $1,030,022 
Mercury Systems, Inc.*   26,689    2,066,530 
TransDigm Group, Inc.   2,406    1,038,381 
         4,134,933 
ALTERNATIVE CARRIERS—0.6%          
Bandwidth, Inc., Cl. A*   8,513    1,232,512 
           
APPAREL ACCESSORIES & LUXURY GOODS—1.3%          
Lululemon Athletica, Inc.*   8,345    2,717,049 
           
APPAREL RETAIL—0.5%          
Burlington Stores, Inc.*   5,567    1,046,596 
           
APPLICATION SOFTWARE—14.8%          
ANSYS, Inc.*   5,085    1,579,401 
Atlassian Corp. PLC, Cl. A*   9,872    1,743,889 
Avalara, Inc.*   22,830    3,069,493 
Benefitfocus, Inc.*   94,390    1,105,307 
Bill.com Holdings, Inc.*   13,045    1,214,620 
Cadence Design Systems, Inc.*   31,011    3,387,951 
Coupa Software, Inc.*   12,468    3,820,818 
DocuSign, Inc., Cl. A*   10,726    2,325,719 
Dynatrace, Inc.*   24,892    1,041,232 
Fair Isaac Corp.*   3,560    1,563,516 
Five9, Inc.*   13,301    1,607,027 
Palantir Technologies, Inc., Cl. A*,@,(a)   16,376    94,162 
Paycom Software, Inc.*   6,979    1,984,618 
PTC, Inc.*   19,396    1,659,522 
RingCentral, Inc., Cl. A*   8,791    2,551,764 
Splunk, Inc.*   5,105    1,071,131 
Vertex, Inc., Cl. A*   1,380    32,513 
Workday, Inc., Cl. A*   4,152    751,180 
Zoom Video Communications, Inc., Cl. A*   5,063    1,285,546 
         31,889,409 
AUTOMOTIVE RETAIL—0.7%          
O’Reilly Automotive, Inc.*   3,279    1,565,329 
           
BIOTECHNOLOGY—6.1%          
BioMarin Pharmaceutical, Inc.*   14,627    1,752,461 
BioNTech SE#,*   4,959    407,183 
Forte Biosciences, Inc.*   158,742    2,992,287 
Genmab AS#,*   47,955    1,639,581 
Immunomedics, Inc.*   16,603    701,145 
Moderna, Inc.*   18,496    1,370,554 
Sarepta Therapeutics, Inc.*   12,015    1,844,543 
Seattle Genetics, Inc.*   11,431    1,900,632 
Twist Bioscience Corp.*   13,282    744,323 
         13,352,709 
BUILDING PRODUCTS—0.5%          
Lennox International, Inc.   4,373    1,172,576 

 

- 13 -

 

 

THE ALGER FUNDS | ALGER MID CAP GROWTH FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)

 

COMMON STOCKS—92.7% (CONT.)  SHARES   VALUE 
CASINOS & GAMING—1.0%          
DraftKings, Inc., Cl. A*   48,255   $1,610,510 
Penn National Gaming, Inc.*   17,168    581,137 
         2,191,647 
DATA PROCESSING & OUTSOURCED SERVICES—1.6%          
Global Payments, Inc.   12,057    2,146,387 
Square, Inc., Cl. A*   9,568    1,242,405 
         3,388,792 
DISTRIBUTORS—1.4%          
Pool Corp.   9,272    2,936,442 
           
DIVERSIFIED SUPPORT SERVICES—2.4%          
Cintas Corp.   8,627    2,604,232 
Copart, Inc.*   29,043    2,708,260 
         5,312,492 
EDUCATION SERVICES—1.0%          
Chegg, Inc.*   27,260    2,207,242 
           
ELECTRICAL COMPONENTS & EQUIPMENT—0.7%          
AMETEK, Inc.   15,598    1,454,514 
           
ELECTRONIC EQUIPMENT & INSTRUMENTS—1.9%          
Cognex Corp.   24,787    1,657,507 
Keysight Technologies, Inc.*   10,043    1,003,195 
Trimble, Inc.*   35,317    1,571,960 
         4,232,662 
FINANCIAL EXCHANGES & DATA—1.2%          
MarketAxess Holdings, Inc.   3,193    1,649,823 
Tradeweb Markets, Inc., Cl. A   15,799    854,252 
         2,504,075 
FOOD DISTRIBUTORS—1.9%          
US Foods Holding Corp.*   203,899    4,139,150 
           
GENERAL MERCHANDISE STORES—0.3%          
Ollie’s Bargain Outlet Holdings, Inc.*   6,112    642,371 
           
HEALTHCARE EQUIPMENT—7.5%          
ABIOMED, Inc.*   3,501    1,050,090 
DexCom, Inc.*   12,692    5,527,873 
Hologic, Inc.*   20,370    1,421,419 
IDEXX Laboratories, Inc.*   1,248    496,392 
Insulet Corp.*   8,489    1,726,323 
Masimo Corp.*   8,917    1,962,810 
Nevro Corp.*   3,759    499,797 
ResMed, Inc.   8,109    1,642,154 
Sartorius AG   2,974    1,144,524 
Tandem Diabetes Care, Inc.*   5,028    525,225 
         15,996,607 
HEALTHCARE SERVICES—1.3%          
1Life Healthcare, Inc.*   12,316    364,677 
Guardant Health, Inc.*   28,440    2,422,519 
         2,787,196 

 

- 14 -

 

 

THE ALGER FUNDS | ALGER MID CAP GROWTH FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)

 

COMMON STOCKS—92.7% (CONT.)  SHARES   VALUE 
HEALTHCARE SUPPLIES—0.8%          
Align Technology, Inc.*   3,042   $893,800 
Quidel Corp.*   3,307    934,129 
         1,827,929 
HEALTHCARE TECHNOLOGY—4.2%          
Livongo Health, Inc.*   14,211    1,808,350 
Phreesia, Inc.*   19,156    575,829 
Teladoc Health, Inc.*   14,481    3,441,120 
Veeva Systems, Inc., Cl. A*   12,311    3,257,121 
         9,082,420 
HOTELS RESORTS & CRUISE LINES—0.5%          
Extended Stay America, Inc.   88,960    1,015,034 
           
INDUSTRIAL MACHINERY—1.8%          
Donaldson Co., Inc.   44,597    2,155,819 
Lincoln Electric Holdings, Inc.   12,355    1,116,768 
Woodward, Inc.   8,825    661,346 
         3,933,933 
INTERACTIVE HOME ENTERTAINMENT—1.4%          
Activision Blizzard, Inc.   19,177    1,584,595 
Take-Two Interactive Software, Inc.*   9,339    1,531,783 
         3,116,378 
INTERACTIVE MEDIA & SERVICES—1.1%          
Pinterest, Inc., Cl. A*   72,271    2,478,173 
           
INTERNET & DIRECT MARKETING RETAIL—5.9%          
Etsy, Inc.*   18,972    2,245,905 
Farfetch Ltd., Cl. A*   75,285    1,929,555 
Fiverr International Ltd.*   23,816    2,225,129 
Magnite, Inc.*   102,722    616,846 
MercadoLibre, Inc.*   2,134    2,399,939 
Wayfair, Inc., Cl. A*   13,059    3,474,869 
         12,892,243 
INTERNET SERVICES & INFRASTRUCTURE—3.4%          
Akamai Technologies, Inc.*   19,602    2,204,049 
Shopify, Inc., Cl. A*   1,141    1,168,384 
Twilio, Inc., Cl. A*   8,686    2,409,670 
VeriSign, Inc.*   7,456    1,578,286 
         7,360,389 
LEISURE FACILITIES—1.4%          
Vail Resorts, Inc.   16,055    3,083,042 
           
LEISURE PRODUCTS—0.7%          
Peloton Interactive, Inc., Cl. A*   21,918    1,495,246 
           
LIFE SCIENCES TOOLS & SERVICES—2.3%          
Bio-Rad Laboratories, Inc., Cl. A*   1,410    740,095 
Bio-Techne Corp.   5,123    1,409,645 
Lonza Group AG   1,382    864,450 
Repligen Corp.*   12,671    1,912,180 
         4,926,370 

 

- 15 -

 

 

THE ALGER FUNDS | ALGER MID CAP GROWTH FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)

 

COMMON STOCKS—92.7% (CONT.)  SHARES   VALUE 
METAL & GLASS CONTAINERS—1.0%          
Ball Corp.   29,458   $2,168,993 
           
MOVIES & ENTERTAINMENT—1.6%          
Liberty Media Corp.-Liberty Formula One, Cl. C*   31,393    1,112,568 
Roku, Inc., Cl. A*   15,906    2,463,680 
         3,576,248 
PHARMACEUTICALS—1.0%          
GW Pharmaceuticals PLC#,*   10,688    1,364,109 
Horizon Therapeutics PLC*   14,893    911,303 
         2,275,412 
PROPERTY & CASUALTY INSURANCE—0.5%          
The Progressive Corp.   12,480    1,127,443 
           
REAL ESTATE SERVICES—0.8%          
FirstService Corp.   15,055    1,799,825 
           
REGIONAL BANKS—0.4%          
SVB Financial Group*   4,209    943,952 
           
RESEARCH & CONSULTING SERVICES—2.1%          
CoStar Group, Inc.*   2,119    1,800,641 
Verisk Analytics, Inc., Cl. A   14,410    2,719,312 
         4,519,953 
RESTAURANTS—1.7%          
Chipotle Mexican Grill, Inc., Cl. A*   2,451    2,831,297 
Shake Shack, Inc., Cl. A*   19,856    964,009 
         3,795,306 
SEMICONDUCTOR EQUIPMENT—2.7%          
Lam Research Corp.   9,508    3,586,037 
SolarEdge Technologies, Inc.*   13,308    2,330,231 
         5,916,268 
SEMICONDUCTORS—5.4%          
Advanced Micro Devices, Inc.*   97,341    7,537,114 
Inphi Corp.*   12,528    1,636,908 
Universal Display Corp.   14,551    2,538,422 
         11,712,444 
SYSTEMS SOFTWARE—2.9%          
Crowdstrike Holdings, Inc., Cl. A*   31,821    3,602,137 
Palo Alto Networks, Inc.*   10,830    2,771,614 
         6,373,751 
TRUCKING—0.5%          
Old Dominion Freight Line, Inc.   6,035    1,103,319 
           
TOTAL COMMON STOCKS          
(Cost $140,543,091)        201,428,374 

 

PREFERRED STOCKS—0.3%  SHARES   VALUE 
APPLICATION SOFTWARE—0.2%          
Palantir Technologies, Inc., Cl. B*,@,(a)   66,787    384,025 
Palantir Technologies, Inc., Cl. D*,@,(a)   8,701    50,031 
         434,056 

 

- 16 -

 

 

THE ALGER FUNDS | ALGER MID CAP GROWTH FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)

 

PREFERRED STOCKS—0.3% (CONT.)  SHARES   VALUE 
BIOTECHNOLOGY—0.1%          
Prosetta Biosciences, Inc., Series D*,@,(a),(b)   219,610   $173,492 
           
TOTAL PREFERRED STOCKS          
(Cost $1,486,719)        607,548 

 

WARRANTS—0.7%  SHARES   VALUE 
BIOTECHNOLOGY—0.7%          
Forte Biosciences, Inc., 2/20/21*,@   193,270    1,601,435 
(Cost $0)        1,601,435 

 

RIGHTS—0.8%  SHARES   VALUE 
BIOTECHNOLOGY—0.8%          
BioNTech Pharmaceuticals Ltd.*   4,959    – 
Tolero CDR*,@,(a),(c)   590,059    1,829,183 
         1,829,183 
TOTAL RIGHTS          
(Cost $315,501)        1,829,183 

 

REAL ESTATE INVESTMENT TRUST—2.6%  SHARES   VALUE 
INDUSTRIAL—0.7%          
Rexford Industrial Realty, Inc.   30,847    1,447,650 
           
RESIDENTIAL—0.7%          
Equity LifeStyle Properties, Inc.   20,745    1,417,298 
           
SPECIALIZED—1.2%          
Crown Castle International Corp.   16,286    2,714,876 
           
TOTAL REAL ESTATE INVESTMENT TRUST          
(Cost $4,324,341)        5,579,824 
           
Total Investments          
(Cost $146,669,652)   97.1%  $211,046,364 
Affiliated Securities (Cost $988,245)        173,492 
Unaffiliated Securities (Cost $145,681,407)        210,872,872 
Other Assets in Excess of Liabilities   2.9%   6,248,490 
NET ASSETS  100.0%  $217,294,854 

 

#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 Fund in accordance with Section 2(a)(3) of the Investment Company Act of 1940. See Note 5 - Affiliated Securities.
(c)Contingent Deferred Rights.
*Non-income producing security.

 

- 17 -

 

 

THE ALGER FUNDS | ALGER MID CAP GROWTH FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)

 

@ Restricted security - Investment in security not registered under the Securities Act of 1933. Sales or transfers of the investment may be restricted only to qualified buyers.

 

          % of net assets       % of net assets 
   Acquisition  Acquisition   (Acquisition   Market   as of 
Security  Date(s)  Cost   Date)   Value   7/31/2020 
Forte Biosciences, Inc., Warrants  2/19/20   0    0.00%   1,601,435    0.74%
Palantir Technologies, Inc., Cl. A  10/7/14   106,559    0.05%   94,162    0.04%
Palantir Technologies, Inc., Cl. B  10/7/14   441,023    0.22%   384,025    0.18%
Palantir Technologies, Inc., Cl. D  10/14/14   57,451    0.03%   50,031    0.02%
Prosetta Biosciences, Inc., Series D  2/6/15   988,245    0.50%   173,492    0.08%
Tolero CDR  2/6/17   315,501    0.19%   1,829,183    0.84%
Total               $7,124,615    3.28%

 

See Notes to Financial Statements.

 

- 18 -

 

 

THE ALGER FUNDS | ALGER MID CAP FOCUS FUND

Schedule of Investments July 31, 2020 (Unaudited)

 

COMMON STOCKS—93.6%  SHARES   VALUE 
AEROSPACE & DEFENSE—1.4%          
Mercury Systems, Inc.*   43,324   $3,354,577 
           
AIR FREIGHT & LOGISTICS—1.6%          
XPO Logistics, Inc.*   50,930    3,820,769 
           
APPAREL ACCESSORIES & LUXURY GOODS—2.8%          
Lululemon Athletica, Inc.*   20,270    6,599,709 
           
APPAREL RETAIL—1.4%          
Burlington Stores, Inc.*   17,303    3,252,964 
           
APPLICATION SOFTWARE—17.2%          
2U, Inc.*   42,945    2,022,495 
Bill.com Holdings, Inc.*   45,247    4,212,948 
Coupa Software, Inc.*   13,605    4,169,252 
DocuSign, Inc., Cl. A*   25,464    5,521,359 
Dynatrace, Inc.*   128,582    5,378,585 
Manhattan Associates, Inc.*   54,017    5,174,288 
RingCentral, Inc., Cl. A*   16,121    4,679,443 
The Trade Desk, Inc., Cl. A*   8,308    3,749,567 
Vertex, Inc., Cl. A*   100,669    2,371,762 
Zoom Video Communications, Inc., Cl. A*   13,156    3,340,440 
         40,620,139 
AUTOMOBILE MANUFACTURERS—1.5%          
Tesla, Inc.*   2,479    3,546,854 
           
CASINOS & GAMING—3.5%          
DraftKings, Inc., Cl. A*   132,618    4,426,125 
Penn National Gaming, Inc.*   117,043    3,961,906 
         8,388,031 
DATA PROCESSING & OUTSOURCED SERVICES—2.7%          
NIC, Inc.   160,183    3,511,211 
Square, Inc., Cl. A*   22,528    2,925,261 
         6,436,472 
DISTRIBUTORS—2.4%          
Pool Corp.   18,231    5,773,758 
           
FINANCIAL EXCHANGES & DATA—2.0%          
MarketAxess Holdings, Inc.   9,164    4,735,039 
           
GENERAL MERCHANDISE STORES—2.6%          
Ollie’s Bargain Outlet Holdings, Inc.*   58,085    6,104,733 
           
HEALTHCARE EQUIPMENT—7.3%          
Cantel Medical Corp.   104,569    4,940,885 
DexCom, Inc.*   9,869    4,298,344 
Masimo Corp.*   18,213    4,009,046 
Vapotherm, Inc.*   75,144    3,925,523 
         17,173,798 
HEALTHCARE SUPPLIES—6.6%          
OraSure Technologies, Inc.*   278,552    5,055,719 
Quidel Corp.*   24,885    7,029,266 

 

- 19 -

 

 

 

THE ALGER FUNDS | ALGER MID CAP FOCUS FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)

 

COMMON STOCKS—93.6% (CONT.)  SHARES   VALUE 
HEALTHCARE SUPPLIES—6.6% (CONT.)          
Silk Road Medical, Inc.*   76,344   $3,546,942 
         15,631,927 
HEALTHCARE TECHNOLOGY—3.1%          
Teladoc Health, Inc.*   16,750    3,980,303 
Veeva Systems, Inc., Cl. A*   13,088    3,462,692 
         7,442,995 
INTERACTIVE HOME ENTERTAINMENT—1.5%          
Activision Blizzard, Inc.   43,789    3,618,285 
           
INTERNET & DIRECT MARKETING RETAIL—12.5%          
Chewy, Inc., Cl. A*   72,933    3,828,253 
Etsy, Inc.*   43,280    5,123,487 
Farfetch Ltd., Cl. A*   129,797    3,326,697 
Fiverr International Ltd.*   32,410    3,028,066 
MercadoLibre, Inc.*   7,224    8,124,255 
Stamps.com, Inc.*   23,353    6,078,319 
         29,509,077 
INTERNET SERVICES & INFRASTRUCTURE—4.2%          
Okta, Inc., Cl. A*   20,429    4,514,400 
Shopify, Inc., Cl. A*   5,216    5,341,184 
         9,855,584 
LEISURE FACILITIES—1.8%          
Vail Resorts, Inc.   21,627    4,153,033 
           
LIFE SCIENCES TOOLS & SERVICES—1.3%          
Bio-Techne Corp.   11,262    3,098,852 
           
MOVIES & ENTERTAINMENT—1.5%          
Roku, Inc., Cl. A*   22,883    3,544,348 
           
PHARMACEUTICALS—1.8%          
Zoetis, Inc., Cl. A   28,680    4,350,182 
           
REAL ESTATE SERVICES—0.8%          
Redfin Corp.*   44,462    1,848,730 
           
RESTAURANTS—2.2%          
Chipotle Mexican Grill, Inc., Cl. A*   4,589    5,301,029 
           
SEMICONDUCTORS—4.4%          
Advanced Micro Devices, Inc.*   61,376    4,752,344 
Universal Display Corp.   32,594    5,686,023 
         10,438,367 
SYSTEMS SOFTWARE—2.6%          
Crowdstrike Holdings, Inc., Cl. A*   55,243    6,253,508 
           
TRADING COMPANIES & DISTRIBUTORS—2.9%          
SiteOne Landscape Supply, Inc.*   53,111    6,799,801 
           
TOTAL COMMON STOCKS
(Cost $178,047,353)		        221,652,561 

 

- 20 -

 

 

THE ALGER FUNDS | ALGER MID CAP FOCUS FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)

 

   VALUE 
Total Investments
(Cost $178,047,353)		   93.6%  $221,652,561 
Unaffiliated Securities (Cost $178,047,353)        221,652,561 
Other Assets in Excess of Liabilities   6.4%   15,215,340 
NET ASSETS   100.0%  $236,867,901 

 

*Non-income producing security.

 

See Notes to Financial Statements.

 

- 21 -

 

 

THE ALGER FUNDS | ALGER WEATHERBIE SPECIALIZED GROWTH FUND

Schedule of Investments July 31, 2020 (Unaudited)

 

COMMON STOCKS—96.6%  SHARES   VALUE 
AEROSPACE & DEFENSE—1.3%          
Kratos Defense & Security Solutions, Inc.*   605,170   $10,899,112 
           
AIR FREIGHT & LOGISTICS—1.6%          
XPO Logistics, Inc.*   182,548    13,694,751 
           
APPAREL ACCESSORIES & LUXURY GOODS—0.7%          
Canada Goose Holdings, Inc.*   285,313    6,356,774 
           
APPLICATION SOFTWARE—23.4%          
Altair Engineering, Inc., Cl. A*   61,072    2,461,202 
Avalara, Inc.*   144,995    19,494,578 
Bill.com Holdings, Inc.*   38,581    3,592,277 
Cerence, Inc.*   291,564    11,563,428 
Ebix, Inc.   364,820    8,046,105 
Everbridge, Inc.*   233,692    33,371,217 
Globant SA*   128,280    22,184,743 
HubSpot, Inc.*   74,186    17,404,777 
LivePerson, Inc.*   38,122    1,638,484 
Mimecast Ltd.*   174,531    8,190,740 
Paylocity Holding Corp.*   318,745    42,456,834 
Pluralsight, Inc., Cl. A*   630,468    13,347,008 
SPS Commerce, Inc.*   148,924    11,194,617 
Vertex, Inc., Cl. A*   270,297    6,368,197 
         201,314,207 
ASSET MANAGEMENT & CUSTODY BANKS—2.7%          
Hamilton Lane, Inc., Cl. A   320,707    23,167,874 
           
BIOTECHNOLOGY—5.7%          
ACADIA Pharmaceuticals, Inc.*   611,872    25,435,519 
Natera, Inc.*   178,776    8,584,824 
Puma Biotechnology, Inc.*   899,098    9,269,700 
Ultragenyx Pharmaceutical, Inc.*   78,338    6,122,898 
         49,412,941 
CONSUMER FINANCE—1.0%          
LendingTree, Inc.*   24,457    8,469,214 
           
EDUCATION SERVICES—6.1%          
Chegg, Inc.*   648,579    52,515,442 
           
ELECTRONIC EQUIPMENT & INSTRUMENTS—0.6%          
Novanta, Inc.*   52,134    5,405,253 
           
ENVIRONMENTAL & FACILITIES SERVICES—4.2%          
Casella Waste Systems, Inc., Cl. A*   655,820    36,338,986 
           
GENERAL MERCHANDISE STORES—3.8%          
Ollie’s Bargain Outlet Holdings, Inc.*   313,752    32,975,335 
           
HEALTHCARE DISTRIBUTORS—1.5%          
PetIQ, Inc., Cl. A*   364,649    13,306,042 
           
HEALTHCARE EQUIPMENT—11.4%          
Glaukos Corp.*   406,998    17,785,813 
Insulet Corp.*   168,544    34,275,107 

 

- 22 -

 

 

THE ALGER FUNDS | ALGER WEATHERBIE SPECIALIZED GROWTH FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)

 

COMMON STOCKS—96.6% (CONT.)  SHARES   VALUE 
HEALTHCARE EQUIPMENT—11.4% (CONT.)          
Nevro Corp.*   345,725   $45,967,596 
         98,028,516 
HEALTHCARE FACILITIES—1.3%          
US Physical Therapy, Inc.   134,843    11,200,060 
           
HEALTHCARE SUPPLIES—1.0%          
Silk Road Medical, Inc.*   191,609    8,902,154 
           
HEALTHCARE TECHNOLOGY—2.4%          
Inspire Medical Systems, Inc.*   12,516    1,243,590 
Tabula Rasa HealthCare, Inc.*   339,571    19,083,890 
         20,327,480 
INSURANCE BROKERS—1.7%          
eHealth, Inc.*   71,596    4,950,147 
Goosehead Insurance, Inc., Cl. A*   92,892    9,598,531 
         14,548,678 
IT CONSULTING & OTHER SERVICES—2.8%          
EPAM Systems, Inc.*   83,374    24,185,130 
           
LEISURE FACILITIES—2.1%          
Planet Fitness, Inc., Cl. A*   348,128    18,172,282 
           
LIFE SCIENCES TOOLS & SERVICES—2.3%          
NeoGenomics, Inc.*   522,867    19,989,205 
           
MANAGED HEALTHCARE—4.3%          
Progyny, Inc.*   1,385,106    36,878,447 
           
OIL & GAS EQUIPMENT & SERVICES—0.9%          
Core Laboratories NV   358,958    7,656,574 
           
PHARMACEUTICALS—0.2%          
Aerie Pharmaceuticals, Inc.*   143,248    1,655,947 
           
REAL ESTATE SERVICES—6.0%          
FirstService Corp.   431,190    51,548,765 
           
REGIONAL BANKS—2.1%          
Signature Bank   177,819    18,231,782 
           
RESTAURANTS—0.7%          
Wingstop, Inc.   39,542    6,178,437 
           
SEMICONDUCTORS—0.8%          
Impinj, Inc.*   288,856    6,817,002 
           
SYSTEMS SOFTWARE—0.9%          
Rapid7, Inc.*   125,904    7,500,101 
           
THRIFTS & MORTGAGE FINANCE—0.3%          
Axos Financial, Inc.*   96,080    2,153,153 
           
TRADING COMPANIES & DISTRIBUTORS—2.8%          
SiteOne Landscape Supply, Inc.*   188,929    24,188,580 
           
TOTAL COMMON STOCKS
(Cost $634,254,603)		        832,018,224 

 

- 23 -

 

 

THE ALGER FUNDS | ALGER WEATHERBIE SPECIALIZED GROWTH FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)

 

PREFERRED STOCKS—0.0%  SHARES   VALUE 
BIOTECHNOLOGY—0.0%          
Prosetta Biosciences, Inc., Series D*,@,(a),(b)   231,474   $182,864 
(Cost $1,041,633)        182,864 
Total Investments
(Cost $635,296,236)		   96.6%  $832,201,088 
Affiliated Securities (Cost $1,041,633)        182,864 
Unaffiliated Securities (Cost $634,254,603)        832,018,224 
Other Assets in Excess of Liabilities   3.4%   29,172,173 
NET ASSETS   100.0%  $861,373,261 

 

(a)Deemed an affiliate of the Fund in accordance with Section 2(a)(3) of the Investment Company Act of 1940. See Note 5 - Affiliated Securities.
(b)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. Sales or transfers of the investment may be restricted only to qualified buyers.

 

          % of net assets       % of net assets 
   Acquisition  Acquisition   (Acquisition   Market   as of 
Security  Date(s)  Cost   Date)   Value   7/31/2020 
Prosetta Biosciences, Inc., Series D  2/6/15  $1,041,633    0.10%  $182,864    0.02%
Total               $182,864    0.02%

 

See Notes to Financial Statements.

 

- 24 -

 

 

THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND

Schedule of Investments July 31, 2020 (Unaudited)

 

COMMON STOCKS—90.7%  SHARES   VALUE 
AEROSPACE & DEFENSE—1.4%          
Hexcel Corp.   27,793   $1,036,679 
Mercury Systems, Inc.*   43,876    3,397,319 
         4,433,998 
ALTERNATIVE CARRIERS—1.0%          
Bandwidth, Inc., Cl. A*   22,282    3,225,988 
           
APPAREL RETAIL—1.0%          
Burlington Stores, Inc.*   17,286    3,249,768 
           
APPLICATION SOFTWARE—18.3%          
ACI Worldwide, Inc.*   113,075    3,029,279 
Avalara, Inc.*   62,179    8,359,967 
Benefitfocus, Inc.*   91,388    1,070,154 
Bill.com Holdings, Inc.*   31,543    2,936,969 
Blackbaud, Inc.   42,352    2,648,694 
Blackline, Inc.*   21,113    1,877,157 
Coupa Software, Inc.*   17,585    5,388,923 
Everbridge, Inc.*   36,346    5,190,209 
Guidewire Software, Inc.*   31,593    3,717,232 
HubSpot, Inc.*   19,566    4,590,379 
Manhattan Associates, Inc.*   35,349    3,386,081 
Medallia, Inc.*   31,860    979,058 
Paycom Software, Inc.*   13,874    3,945,349 
Q2 Holdings, Inc.*   42,922    4,036,814 
Smartsheet, Inc., Cl. A*   40,743    1,945,071 
SPS Commerce, Inc.*   34,167    2,568,333 
Tyler Technologies, Inc.*   8,205    2,931,236 
Vertex, Inc., Cl. A*   29,040    684,182 
         59,285,087 
ASSET MANAGEMENT & CUSTODY BANKS—1.3%          
Affiliated Managers Group, Inc.   33,930    2,334,045 
WisdomTree Investments, Inc.   532,309    1,916,312 
         4,250,357 
BIOTECHNOLOGY—3.2%          
BioNTech SE#,*   15,405    1,264,904 
CareDx, Inc.*   127,652    4,257,194 
Exact Sciences Corp.*   20,904    1,980,654 
Moderna, Inc.*   27,767    2,057,535 
Turning Point Therapeutics, Inc.*   15,459    915,637 
         10,475,924 
CASINOS & GAMING—2.3%          
DraftKings, Inc., Cl. A*   116,097    3,874,737 
Penn National Gaming, Inc.*   100,794    3,411,877 
         7,286,614 
DIVERSIFIED SUPPORT SERVICES—0.5%          
IAA, Inc.*   33,999    1,473,857 
           
ELECTRICAL COMPONENTS & EQUIPMENT—1.3%          
Sunrun, Inc.*   114,831    4,213,149 

 

- 25 -

 

 

THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)

 

COMMON STOCKS—90.7% (CONT.)  SHARES   VALUE 
ELECTRONIC COMPONENTS—0.7%          
Dolby Laboratories, Inc., Cl. A   32,290   $2,247,384 
           
ELECTRONIC EQUIPMENT & INSTRUMENTS—1.4%          
Cognex Corp.   65,546    4,383,061 
           
FINANCIAL EXCHANGES & DATA—0.7%          
Tradeweb Markets, Inc., Cl. A   39,335    2,126,843 
           
FOOD DISTRIBUTORS—0.7%          
The Chefs’ Warehouse, Inc.*   35,695    411,563 
US Foods Holding Corp.*   87,946    1,785,304 
         2,196,867 
GENERAL MERCHANDISE STORES—1.1%          
Ollie’s Bargain Outlet Holdings, Inc.*   33,166    3,485,747 
           
HEALTHCARE EQUIPMENT—11.5%          
ABIOMED, Inc.*   17,450    5,233,953 
Cantel Medical Corp.   85,433    4,036,709 
CryoPort, Inc.*   53,466    1,771,863 
DexCom, Inc.*   18,550    8,079,267 
Inmode Ltd.*   13,921    450,484 
Inogen, Inc.*   24,016    737,291 
Insulet Corp.*   41,145    8,367,248 
Mesa Laboratories, Inc.   7,617    1,804,772 
Tandem Diabetes Care, Inc.*   63,496    6,632,792 
         37,114,379 
HEALTHCARE SERVICES—2.3%          
1Life Healthcare, Inc.*   82,984    2,457,156 
Guardant Health, Inc.*   40,500    3,449,790 
Progenity, Inc.*   161,915    1,475,046 
         7,381,992 
HEALTHCARE SUPPLIES—9.4%          
Neogen Corp.*   68,060    5,224,966 
Quidel Corp.*   89,712    25,340,949 
         30,565,915 
HEALTHCARE TECHNOLOGY—7.3%          
Livongo Health, Inc.*   18,431    2,345,345 
Teladoc Health, Inc.*   24,015    5,706,684 
Veeva Systems, Inc., Cl. A*   48,382    12,800,426 
Vocera Communications, Inc.*   89,374    2,750,038 
         23,602,493 
HOMEFURNISHING RETAIL—0.4%          
Bed Bath & Beyond, Inc.   113,791    1,231,219 
           
HYPERMARKETS & SUPER CENTERS—1.0%          
BJ’s Wholesale Club Holdings, Inc.*   80,301    3,216,055 
           
INTERACTIVE HOME ENTERTAINMENT—0.9%          
Take-Two Interactive Software, Inc.*   17,266    2,831,969 
           
INTERACTIVE MEDIA & SERVICES—0.1%          
Eventbrite, Inc., Cl. A*   54,133    461,213 

 

- 26 -

 

 

THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)

 

COMMON STOCKS—90.7% (CONT.)  SHARES   VALUE 
INTERNET & DIRECT MARKETING RETAIL—2.3%          
Farfetch Ltd., Cl. A*   160,727   $4,119,433 
Fiverr International Ltd.*   35,489    3,315,737 
         7,435,170 
INTERNET SERVICES & INFRASTRUCTURE—3.1%          
Shopify, Inc., Cl. A*   9,833    10,068,992 
           
LEISURE FACILITIES—0.5%          
Planet Fitness, Inc., Cl. A*   29,456    1,537,603 
           
LIFE SCIENCES TOOLS & SERVICES—6.8%          
10X Genomics, Inc., Cl. A*   16,620    1,634,909 
Bio-Techne Corp.   38,226    10,518,266 
NanoString Technologies, Inc.*   76,756    2,771,659 
NeoGenomics, Inc.*   73,452    2,808,070 
PRA Health Sciences, Inc.*   18,537    1,975,303 
Repligen Corp.*   16,245    2,451,533 
         22,159,740 
MANAGED HEALTHCARE—0.6%          
HealthEquity, Inc.*   39,878    2,056,110 
           
MOVIES & ENTERTAINMENT—0.7%          
Live Nation Entertainment, Inc.*   48,978    2,292,660 
           
OIL & GAS EXPLORATION & PRODUCTION—0.7%          
Magnolia Oil & Gas Corp., Cl. A*   367,226    2,196,011 
           
PHARMACEUTICALS—0.2%          
Aerie Pharmaceuticals, Inc.*   61,099    706,304 
           
REGIONAL BANKS—0.5%          
Webster Financial Corp.   63,659    1,735,981 
           
RESTAURANTS—2.2%          
Shake Shack, Inc., Cl. A*   70,337    3,414,861 
Wingstop, Inc.   24,515    3,830,469 
         7,245,330 
SEMICONDUCTOR EQUIPMENT—0.8%          
SolarEdge Technologies, Inc.*   14,955    2,618,621 
           
SEMICONDUCTORS—1.0%          
Universal Display Corp.   19,263    3,360,430 
           
SPECIALTY CHEMICALS—1.1%          
Balchem Corp.   34,256    3,434,507 
           
SPECIALTY STORES—1.1%          
Five Below, Inc.*   22,277    2,426,188 
Sportsman’s Warehouse Holdings, Inc.*   68,341    1,099,607 
         3,525,795 
SYSTEMS SOFTWARE—1.3%          
Proofpoint, Inc.*   37,612    4,350,580 
           
TOTAL COMMON STOCKS          
(Cost $164,758,006)        293,463,713 

 

- 27 -

 

 

THE ALGER FUNDS | ALGER SMALL CAP GROWTH FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)

 

PREFERRED STOCKS—0.0%  SHARES   VALUE 
BIOTECHNOLOGY—0.0%          
Prosetta Biosciences, Inc., Series D*,@,(a),(b)   50,688   $40,044 
(Cost $228,096)        40,044 

 

RIGHTS—0.2%  SHARES   VALUE 
BIOTECHNOLOGY—0.2%          
BioNTech Pharmaceuticals Ltd.*   11,329    – 
Tolero CDR*,@,(b),(c)   174,782    541,824 
         541,824 
TOTAL RIGHTS          
(Cost $94,483)        541,824 

 

REAL ESTATE INVESTMENT TRUST—2.1%  SHARES   VALUE 
SPECIALIZED—2.1%          
Digital Realty Trust, Inc.   42,881    6,884,116 
(Cost $5,612,706)        6,884,116 
Total Investments          
(Cost $170,693,291)   93.0%  $300,929,697 
Affiliated Securities (Cost $228,096)        40,044 
Unaffiliated Securities (Cost $170,465,195)        300,889,653 
Other Assets in Excess of Liabilities   7.0%   22,571,895 
NET ASSETS   100.0%  $323,501,592 

 

#American Depositary Receipts.
(a)Deemed an affiliate of the Fund in accordance with Section 2(a)(3) of the Investment Company Act of 1940. See Note 5 - Affiliated Securities.
(b)Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the Board.
(c)Contingent Deferred Rights.
*Non-income producing security.
@Restricted security - Investment in security not registered under the Securities Act of 1933. Sales or transfers of the investment may be restricted only to qualified buyers.

 

           % of net assets       % of net assets 
   Acquisition   Acquisition   (Acquisition   Market   as of 
Security  Date(s)   Cost   Date)   Value   7/31/2020 
Prosetta Biosciences, Inc., Series D  2/6/15   $228,096    0.10%  $40,044    0.01%
Tolero CDR  2/6/17    94,483    0.08%   541,824    0.17%
Total                $581,868    0.18%

 

See Notes to Financial Statements.

 

- 28 -

 

 

THE ALGER FUNDS | ALGER SMALL CAP FOCUS FUND

Schedule of Investments July 31, 2020 (Unaudited)

 

COMMON STOCKS—99.3%  SHARES   VALUE 
AEROSPACE & DEFENSE—2.1%          
Mercury Systems, Inc.*   1,572,692   $121,773,541 
           
ALTERNATIVE CARRIERS—1.1%          
Bandwidth, Inc., Cl. A*   422,720    61,201,402 
           
APPLICATION SOFTWARE—28.8%          
Alteryx, Inc., Cl. A*   548,405    96,239,593 
ANSYS, Inc.*   445,432    138,351,179 
Avalara, Inc.*   998,528    134,252,090 
Blackline, Inc.*   1,360,409    120,953,964 
Coupa Software, Inc.*   356,045    109,109,990 
Datadog, Inc., Cl. A*   1,456,825    136,737,594 
Everbridge, Inc.*   1,101,915    157,353,462 
Guidewire Software, Inc.*   868,509    102,188,769 
Medallia, Inc.*   2,423,081    74,461,279 
Model N, Inc.*   2,956,082    113,690,914 
Paycom Software, Inc.*   283,474    80,611,501 
Pluralsight, Inc., Cl. A*   3,798,448    80,413,144 
PROS Holdings, Inc.*   1,625,557    53,041,925 
Q2 Holdings, Inc.*   989,802    93,090,878 
Smartsheet, Inc., Cl. A*   1,249,725    59,661,872 
Tyler Technologies, Inc.*   266,038    95,042,076 
         1,645,200,230 
BIOTECHNOLOGY—4.7%          
CareDx, Inc.*   4,197,582    139,989,360 
Natera, Inc.*   2,705,321    129,909,514 
         269,898,874 
BUILDING PRODUCTS—2.0%          
Trex Co., Inc.*   820,409    114,307,586 
           
EDUCATION SERVICES—3.3%          
Chegg, Inc.*   2,365,981    191,573,481 
           
ELECTRONIC EQUIPMENT & INSTRUMENTS—3.9%          
Cognex Corp.   2,004,491    134,040,314 
FLIR Systems, Inc.   2,062,687    85,931,540 
         219,971,854 
HEALTHCARE DISTRIBUTORS—1.6%          
PetIQ, Inc., Cl. A*   2,477,129    90,390,437 
           
HEALTHCARE EQUIPMENT—17.5%          
ABIOMED, Inc.*   491,165    147,320,030 
AtriCure, Inc.*   2,123,474    86,658,974 
Cantel Medical Corp.   2,459,036    116,189,451 
CryoPort, Inc.*   3,716,481    123,164,180 
Heska Corp.*   1,108,721    106,681,135 
Insulet Corp.*   604,724    122,976,673 
Nevro Corp.*   933,911    124,172,806 
Tactile Systems Technology, Inc.*   1,903,368    78,000,021 
Tandem Diabetes Care, Inc.*   928,579    96,999,362 
         1,002,162,632 

 

- 29 -

 

  

THE ALGER FUNDS | ALGER SMALL CAP FOCUS FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)  

 

COMMON STOCKS—99.3% (CONT.)  SHARES   VALUE 
HEALTHCARE SERVICES—1.1%          
Guardant Health, Inc.*   718,895   $61,235,476 
           
HEALTHCARE SUPPLIES—7.2%          
Neogen Corp.*   1,531,679    117,586,997 
Quidel Corp.*   1,048,360    296,130,249 
         413,717,246 
HEALTHCARE TECHNOLOGY—5.2%          
Teladoc Health, Inc.*   416,529    98,979,786 
Veeva Systems, Inc., Cl. A*   755,764    199,952,482 
         298,932,268 
INSURANCE BROKERS—0.9%          
eHealth, Inc.*   713,979    49,364,508 
           
INTERNET & DIRECT MARKETING RETAIL—1.8%          
Stamps.com, Inc.*   388,937    101,232,522 
           
INTERNET SERVICES & INFRASTRUCTURE—1.5%          
Shopify, Inc., Cl. A*   81,078    83,023,872 
           
LIFE SCIENCES TOOLS & SERVICES—4.8%          
Bio-Techne Corp.   540,332    148,677,753 
Repligen Corp.*   818,438    123,510,479 
         272,188,232 
MANAGED HEALTHCARE—1.3%          
HealthEquity, Inc.*   1,474,880    76,044,813 
           
RESTAURANTS—4.9%          
Shake Shack, Inc., Cl. A*   1,739,863    84,470,349 
Wingstop, Inc.   1,246,810    194,814,062 
         279,284,411 
SEMICONDUCTORS—2.4%          
Monolithic Power Systems, Inc.   509,287    134,966,148 
           
SPECIALTY CHEMICALS—1.4%          
Balchem Corp.   777,388    77,940,921 
           
SYSTEMS SOFTWARE—1.8%          
Proofpoint, Inc.*   899,788    104,078,478 
           
TOTAL COMMON STOCKS          
(Cost $3,822,194,059)        5,668,488,932 
           
RIGHTS—0.0%  SHARES   VALUE 
BIOTECHNOLOGY—0.0%          
Tolero CDR*,@,(a),(b)   11,905    36,906 
(Cost $6,436)        36,906 
Total Investments          
(Cost $3,822,200,495)   99.3%  $5,668,525,838 
Unaffiliated Securities (Cost $3,822,200,495)        5,668,525,838 
Other Assets in Excess of Liabilities   0.7%   40,049,031 
NET ASSETS   100.0%  $5,708,574,869 

 

(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.

 

- 30 -

 

 

THE ALGER FUNDS | ALGER SMALL CAP FOCUS FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)

 

* Non-income producing security.
@ Restricted security - Investment in security not registered under the Securities Act of 1933. Sales or transfers of the investment may be restricted only to qualified buyers.

 

           % of net assets       % of net assets 
   Acquisition   Acquisition   (Acquisition   Market   as of 
Security  Date(s)   Cost   Date)   Value   7/31/2020 
Tolero CDR   2/6/17   $6,436    0.00%  $36,906    0.00%
Total                 $36,906    0.00%

 

See Notes to Financial Statements.

 

- 31 -

 

 

THE ALGER FUNDS | ALGER INTERNATIONAL FOCUS FUND

Schedule of Investments July 31, 2020 (Unaudited)  

 

COMMON STOCKS—98.9%  SHARES   VALUE 
AUSTRALIA—6.0%          
HEALTHCARE SUPPLIES—1.5%          
Nanosonics Ltd.*   490,062   $2,166,490 
INTERNET & DIRECT MARKETING RETAIL—2.3%          
Kogan.com Ltd.   276,253    3,285,773 
IT CONSULTING & OTHER SERVICES—2.2%          
Appen Ltd.   128,800    3,280,029 
TOTAL AUSTRALIA          
(Cost $6,311,978)        8,732,292 
BRAZIL—0.1%          
EDUCATION SERVICES—0.1%          
Vasta Platform Ltd.*   6,016    113,402 
(Cost $114,304)          
CANADA—1.9%          
ASSET MANAGEMENT & CUSTODY BANKS—1.9%          
Brookfield Asset Management, Inc., Cl. A   84,800    2,741,584 
(Cost $2,857,457)          
CHINA— 9.7%          
AUTOMOBILE MANUFACTURERS—2.6%          
Geely Automobile Holdings Ltd.   1,804,000    3,784,429 
CONSTRUCTION MACHINERY & HEAVY TRUCKS—2.3%          
Sany Heavy Industry Co., Ltd., Cl. A   1,099,843    3,321,793 
INTERACTIVE MEDIA & SERVICES—4.8%          
Baidu, lnc.#,*   16,900    2,017,860 
Tencent Holdings Ltd.   72,200    4,952,823 
         6,970,683 
TOTAL CHINA          
(Cost $11,220,545)        14,076,905 
DENMARK—5.9%          
AIR FREIGHT & LOGISTICS—2.2%          
DSV PANALPINA AS   23,600    3,229,984 
APPLICATION SOFTWARE—1.5%          
Netcompany Group AS*,(a)   29,800    2,154,427 
BIOTECHNOLOGY—2.2%          
Genmab AS*   9,200    3,167,351 
TOTAL DENMARK          
(Cost $5,185,404)        8,551,762 
FRANCE— 7.6%          
APPAREL ACCESSORIES & LUXURY GOODS—2.3%          
LVMH Moet Hennessy Louis Vuitton SE   7,700    3,349,003 
LIFE SCIENCES TOOLS & SERVICES—2.7%          
Eurofins Scientific SE*   6,050    3,960,725 
RESEARCH & CONSULTING SERVICES—2.6%          
Teleperformance   12,557    3,675,777 
TOTAL FRANCE          
(Cost $7,672,471)        10,985,505 

 

- 32 -

 

 

THE ALGER FUNDS | ALGER INTERNATIONAL FOCUS FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)

 

COMMON STOCKS—98.9% (CONT.)  SHARES   VALUE 
GERMANY—3.5%          
AUTOMOBILE MANUFACTURERS—1.6%          
Bayerische Motoren Werke AG   36,900   $2,360,272 
FOOTWEAR—1.9%          
Puma SE   35,300    2,748,258 
TOTAL GERMANY          
(Cost $4,025,067)        5,108,530 
HONG KONG—6.3%          
APPAREL ACCESSORIES & LUXURY GOODS—1.5%          
Samsonite International SA*,(a)   2,357,000    2,209,191 
FINANCIAL EXCHANGES & DATA—2.7%          
Hong Kong Exchanges & Clearing Ltd.   80,000    3,809,077 
INDUSTRIAL MACHINERY—2.1%          
Techtronic Industries Co., Ltd.   289,000    3,022,682 
TOTAL HONG KONG          
(Cost $7,227,930)        9,040,950 
INDIA—3.5%          
DIVERSIFIED BANKS—1.9%          
HDFC Bank Ltd.#,*   59,000    2,758,250 
OIL & GAS REFINING & MARKETING—1.6%          
Reliance Industries Ltd.   85,000    2,350,645 
TOTAL INDIA          
(Cost $4,603,938)        5,108,895 
IRELAND—2.6%          
PACKAGED FOODS & MEATS—2.6%          
Kerry Group PLC, Cl. A   28,041    3,714,719 
(Cost $2,962,801)          
ITALY— 5.9%          
APPAREL ACCESSORIES & LUXURY GOODS—1.6%          
Moncler SpA   59,786    2,311,929 
AUTOMOBILE MANUFACTURERS—2.6%          
Ferrari NV   21,062    3,826,965 
DATA PROCESSING & OUTSOURCED SERVICES—1.7%          
Nexi SpA*   134,300    2,413,189 
TOTAL ITALY          
(Cost $6,345,985)        8,552,083 
JAPAN—11.8%          
ELECTRONIC COMPONENTS—2.4%          
Murata Manufacturing Co., Ltd.   53,800    3,456,264 
HEALTHCARE SUPPLIES—1.9%          
Hoya Corp.   27,900    2,752,004 
HUMAN RESOURCE & EMPLOYMENT SERVICES—1.9%          
Benefit One, Inc.   125,000    2,742,063 
INDUSTRIAL MACHINERY—1.7%          
FANUC Corp.   14,900    2,514,450 

 

- 33 -

 

 

THE ALGER FUNDS | ALGER INTERNATIONAL FOCUS FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)

 

COMMON STOCKS—98.9% (CONT.)  SHARES   VALUE 
JAPAN—11.8% (CONT.)          
INTERACTIVE HOME ENTERTAINMENT—2.2%          
Nintendo Co., Ltd.   7,300   $3,211,222 
SEMICONDUCTOR EQUIPMENT—1.7%          
Lasertec Corp.   27,999    2,472,626 
TOTAL JAPAN          
(Cost $13,597,418)        17,148,629 
NETHERLANDS—7.4%          
DATA PROCESSING & OUTSOURCED SERVICES—3.1%          
Adyen NV*,(a)   2,650    4,424,200 
HEAVY ELECTRICAL EQUIPMENT—1.9%          
Alfen Beheer BV*,(a)   63,500    2,793,913 
SEMICONDUCTOR EQUIPMENT—2.4%          
ASML Holding NV   9,900    3,520,569 
TOTAL NETHERLANDS          
(Cost $5,939,817)        10,738,682 
NEW ZEALAND—4.6%          
APPLICATION SOFTWARE—2.1%          
Xero Ltd.*   46,600    2,986,142 
PACKAGED FOODS & MEATS—2.5%          
a2 Milk Co., Ltd.*   265,000    3,637,049 
TOTAL NEW ZEALAND          
(Cost $4,247,518)        6,623,191 
RUSSIA— 1.2%          
INTEGRATED OIL & GAS—1.2%          
LUKOIL PJSC#   25,000    1,695,886 
(Cost $1,751,205)          
SPAIN—2.1%          
BIOTECHNOLOGY—2.1%          
Grifols SA#   157,341    2,969,025 
(Cost $3,254,011)          
SWEDEN—4.8%          
ASSET MANAGEMENT & CUSTODY BANKS—2.7%          
EQT AB   162,898    3,851,553 
INTERACTIVE HOME ENTERTAINMENT—2.1%          
Stillfront Group AB*   31,137    3,030,255 
TOTAL SWEDEN          
(Cost $4,123,174)        6,881,808 
SWITZERLAND—5.3%          
ASSET MANAGEMENT & CUSTODY BANKS—2.6%          
Partners Group Holding AG   3,884    3,763,488 
SPECIALTY CHEMICALS—2.7%          
Sika AG   18,000    3,956,259 
TOTAL SWITZERLAND          
(Cost $5,328,333)        7,719,747 

 

- 34 -

 

 

THE ALGER FUNDS | ALGER INTERNATIONAL FOCUS FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)

 

COMMON STOCKS—98.9% (CONT.)  SHARES   VALUE 
UNITED KINGDOM—4.2%          
FINANCIAL EXCHANGES & DATA—2.5%          
London Stock Exchange Group PLC   32,700   $3,612,421 
PHARMACEUTICALS—1.7%          
AstraZeneca PLC   22,700    2,508,176 
TOTAL UNITED KINGDOM          
(Cost $3,942,665)        6,120,597 
UNITED STATES—4.5%          
APPAREL ACCESSORIES & LUXURY GOODS—2.4%          
Lululemon Athletica, Inc.*   10,591    3,448,324 
SEMICONDUCTORS—2.1%          
NXP Semiconductors NV   26,600    3,126,298 
TOTAL UNITED STATES          
(Cost $4,489,287)        6,574,622 
TOTAL COMMON STOCKS          
(Cost $105,201,308)        143,198,814 
Total Investments          
(Cost $105,201,308)   98.9%  $143,198,814 
Unaffiliated Securities (Cost $105,201,308)        143,198,814 
Other Assets in Excess of Liabilities   1.1%   1,604,713 
NET ASSETS   100.0%  $144,803,527 

 

#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 represent 8.0% of the net assets of the Fund.
*Non-income producing security.

 

See Notes to Financial Statements.

 

- 35 -

 

 

THE ALGER FUNDS | ALGER HEALTH SCIENCES FUND      
Schedule of Investments July 31, 2020 (Unaudited)      

 

COMMON STOCKS—93.2%  SHARES   VALUE 
BIOTECHNOLOGY—29.0%          
AbbVie, Inc.   111,320   $10,565,381 
Acceleron Pharma, Inc.*   12,000    1,190,040 
ADC Therapeutics SA*   35,000    1,627,500 
Adverum Biotechnologies, Inc.*   25,000    419,250 
Akebia Therapeutics, Inc.*   90,000    1,005,300 
Amarin Corp. PLC#,*   72,000    466,560 
Arcturus Therapeutics Holdings, Inc.*   4,000    208,920 
Argenx SE#,*   13,000    2,991,690 
Aurinia Pharmaceuticals, Inc.*   50,000    706,500 
Avidity Biosciences, Inc.*   20,000    563,800 
BeiGene Ltd.#,*   4,000    836,000 
BioMarin Pharmaceutical, Inc.*   25,475    3,052,160 
BioNTech SE#,*   33,030    2,712,093 
Bioxcel Therapeutics, Inc.*   18,000    816,480 
Black Diamond Therapeutics, Inc.*   24,000    667,680 
Castle Biosciences, Inc.*   16,000    619,520 
ChemoCentryx, Inc.*   30,000    1,581,300 
Deciphera Pharmaceuticals, Inc.*   13,000    602,810 
Fate Therapeutics, Inc.*   36,166    1,130,911 
FibroGen, Inc.*   18,000    728,460 
Five Prime Therapeutics, Inc.*   30,000    177,000 
Forte Biosciences, Inc.*   202,625    3,819,481 
Genmab AS#,*   65,000    2,222,350 
Gilead Sciences, Inc.   25,000    1,738,250 
Halozyme Therapeutics, Inc.*   60,000    1,631,400 
Immunomedics, Inc.*   57,500    2,428,225 
Invitae Corp.*   48,000    1,401,600 
Iovance Biotherapeutics, Inc.*   40,000    1,162,800 
Karuna Therapeutics, Inc.*   6,000    490,800 
Kodiak Sciences, Inc.*   5,000    231,650 
Legend Biotech Corp.#,*   14,296    503,791 
MeiraGTx Holdings PLC*   36,200    470,238 
Mirati Therapeutics, Inc.*   6,000    727,860 
Moderna, Inc.*   31,000    2,297,100 
Molecular Partners AG*   36,564    694,885 
Neurocrine Biosciences, Inc.*   8,000    962,880 
Regeneron Pharmaceuticals, Inc.*   12,000    7,584,840 
Rocket Pharmaceuticals, Inc.*   13,000    305,890 
Sarepta Therapeutics, Inc.*   56,000    8,597,120 
Seattle Genetics, Inc.*   19,000    3,159,130 
TG Therapeutics, Inc.*   75,000    1,468,500 
Trillium Therapeutics, Inc.*   50,000    334,000 
Turning Point Therapeutics, Inc.*   40,000    2,369,200 
Twist Bioscience Corp.*   41,179    2,307,671 
Vertex Pharmaceuticals, Inc.*   42,000    11,424,000 
Zai Lab Ltd.#,*   7,000    532,770 
Zymeworks, Inc.*   24,000    732,720 
         92,268,506 

 

- 36 - 

 

 

THE ALGER FUNDS | ALGER HEALTH SCIENCES FUND      
Schedule of Investments July 31, 2020 (Unaudited) (Continued)      

 

COMMON STOCKS—93.2% (CONT.)  SHARES   VALUE 
HEALTHCARE EQUIPMENT—22.2%        
Abbott Laboratories   75,108   $7,558,869 
ABIOMED, Inc.*   10,500    3,149,370 
Baxter International, Inc.   15,000    1,295,700 
Boston Scientific Corp.*   35,000    1,349,950 
Cantel Medical Corp.   20,000    945,000 
Danaher Corp.   59,000    12,024,200 
DexCom, Inc.*   30,000    13,066,200 
GenMark Diagnostics, Inc.*   35,000    625,100 
Hill-Rom Holdings, Inc.   6,000    583,320 
Hologic, Inc.*   47,000    3,279,660 
IDEXX Laboratories, Inc.*   9,500    3,778,625 
Insulet Corp.*   20,000    4,067,200 
Intuitive Surgical, Inc.*   4,500    3,084,480 
Masimo Corp.*   17,500    3,852,100 
Nevro Corp.*   6,000    797,760 
ResMed, Inc.   11,000    2,227,610 
Sartorius AG   10,000    3,848,434 
Stryker Corp.   7,500    1,449,750 
Tandem Diabetes Care, Inc.*   35,000    3,656,100 
         70,639,428 
HEALTHCARE SERVICES—2.1%          
1Life Healthcare, Inc.*   17,043    504,643 
Cigna Corp.   13,000    2,244,970 
Guardant Health, Inc.*   46,105    3,927,224 
         6,676,837 
HEALTHCARE SUPPLIES—3.2%          
Align Technology, Inc.*   8,000    2,350,560 
Quidel Corp.*   10,000    2,824,700 
STAAR Surgical Co.*   40,000    2,327,600 
West Pharmaceutical Services, Inc.   10,000    2,688,700 
         10,191,560 
HEALTHCARE TECHNOLOGY—5.5%          
Livongo Health, Inc.*   41,000    5,217,250 
Phreesia, Inc.*   23,353    701,991 
Schrodinger, Inc.*   27,301    1,976,046 
Teladoc Health, Inc.*   25,407    6,037,466 
Veeva Systems, Inc., Cl. A*   14,000    3,703,980 
         17,636,733 
INSURANCE BROKERS—0.5%          
eHealth, Inc.*   23,534    1,627,141 
           
LIFE SCIENCES TOOLS & SERVICES—8.0%          
10X Genomics, Inc., Cl. A*   11,000    1,082,070 
Adaptive Biotechnologies Corp.*   28,171    1,051,342 
Berkeley Lights, Inc.*   10,566    633,643 
Bio-Techne Corp.   3,000    825,480 
Illumina, Inc.*   11,000    4,203,760 
Lonza Group AG   5,500    3,440,285 

 

- 37 - 

 

 

THE ALGER FUNDS | ALGER HEALTH SCIENCES FUND

Schedule of Investments July 31, 2020 (Unaudited) (Continued)

 

COMMON STOCKS—93.2% (CONT.)  SHARES   VALUE 
LIFE SCIENCES TOOLS & SERVICES—8.0% (CONT.)          
Repligen Corp.*   23,000   $3,470,930 
Thermo Fisher Scientific, Inc.   26,000    10,762,700 
         25,470,210 
MANAGED HEALTHCARE—6.5%          
HealthEquity, Inc.*   9,000    464,040 
Humana, Inc.   17,000    6,671,650 
Molina Healthcare, Inc.*   7,000    1,292,900 
UnitedHealth Group, Inc.   40,000    12,111,200 
         20,539,790 
PHARMACEUTICALS—16.2%          
Aerie Pharmaceuticals, Inc.*   35,000    404,600 
AstraZeneca PLC#   137,000    7,641,860 
Axsome Therapeutics, Inc.*   23,000    1,640,590 
Catalent, Inc.*   10,000    873,400 
Eli Lilly & Co.   70,000    10,520,300 
Emmaus Life Sciences, Inc.*   292,546    558,763 
GW Pharmaceuticals PLC#,*   32,000    4,084,160 
Horizon Therapeutics PLC*   43,000    2,631,170 
Kala Pharmaceuticals, Inc.*   50,000    437,500 
Merck & Co., Inc.   26,000    2,086,240 
Novartis AG#   50,000    4,107,000 
Novo Nordisk AS#   33,000    2,155,890 
Ocular Therapeutix, Inc.*   140,000    1,097,600 
Provention Bio, Inc.*   45,000    467,550 
Reata Pharmaceuticals, Inc., Cl. A*   8,500    1,255,450 
Roche Holding AG#   120,000    5,172,000 
Royalty Pharma PLC, Cl. A*   16,500    710,325 
Sanofi#   18,000    944,100 
Zoetis, Inc., Cl. A   32,000    4,853,760 
         51,642,258 
TOTAL COMMON STOCKS          
(Cost $210,682,161)        296,692,463 

 

PREFERRED STOCKS—0.2%  SHARES   VALUE 
BIOTECHNOLOGY—0.2%          
Prosetta Biosciences, Inc., Series D*,@,(a),(b)   897,366    708,919 
(Cost $4,038,147)        708,919 

 

WARRANTS—0.6%  SHARES   VALUE 
BIOTECHNOLOGY—0.6%          
Forte Biosciences, Inc., 2/20/21*,@   211,625    1,753,525 
(Cost $0)        1,753,525 

 

RIGHTS—2.0%  SHARES   VALUE 
BIOTECHNOLOGY—1.9%          
BioNTech Pharmaceuticals Ltd.*   33,030    – 
Tolero CDR*,@,(a),(c)   1,956,996    6,066,688 
         6,066,688 

 

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THE ALGER FUNDS | ALGER HEALTH SCIENCES FUND
Schedule of Investments July 31, 2020 (Unaudited) (Continued)
 
RIGHTS—2.0% (CONT.)  SHARES   VALUE 
PHARMACEUTICALS—0.1%          
Bristol-Myers Squibb Co.*   117,143   $421,715 
TOTAL RIGHTS          
(Cost $1,342,265)        6,488,403 
Total Investments          
(Cost $216,062,573)   96.0%  $305,643,310 
Affiliated Securities (Cost $4,038,147)        708,919 
Unaffiliated Securities (Cost $212,024,426)        304,934,391 
Other Assets in Excess of Liabilities   4.0%   12,645,987 
NET ASSETS   100.0%  $318,289,297 

 

#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 Fund in accordance with Section 2(a)(3) of the Investment Company Act of 1940. See Note 5 - Affiliated Securities.
(c)Contingent Deferred Rights.
*Non-income producing security.
@Restricted security - Investment in security not registered under the Securities Act of 1933. Sales or transfers of the investment may be restricted only to qualified buyers.

 

           % of net assets       % of net assets 
   Acquisition   Acquisition   (Acquisition   Market   as of 
Security  Date(s)   Cost   Date)   Value   7/31/2020 
Forte Biosciences, Inc., Warrants  2/19/20    0    0.00%   1,753,525    0.55%
Prosetta Biosciences, Inc., Series D  2/6/15    4,038,147    2.00%   708,919    0.22%
Tolero CDR  2/6/17    1,044,370    0.90%   6,066,688    1.91%
Total                $12,348,613    3.88%

 

See Notes to Financial Statements.

 

- 39 -

 

 

THE ALGER FUNDS

NOTES TO FINANCIAL STATEMENTS (Unaudited)

 

NOTE 1 — General:

 

The Alger Funds (the “Trust”) is an 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 (“FASB”) 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 eleven funds — Alger Capital Appreciation Fund, Alger 25 Fund, Alger 35 Fund, Alger Growth & Income Fund, Alger Mid Cap Growth Fund, Alger Mid Cap Focus Fund, Alger Weatherbie Specialized Growth Fund, Alger Small Cap Growth Fund, Alger Small Cap Focus Fund, Alger International Focus Fund and Alger Health Sciences Fund (collectively, the “Funds” or individually, each a “Fund”). Alger Capital Appreciation Fund, Alger 25 Fund, Alger 35 Fund, Alger Mid Cap Growth Fund, Alger Mid Cap Focus Fund, Alger Weatherbie Specialized Growth Fund, Alger Small Cap Growth Fund, Alger Small Cap Focus Fund, Alger International Focus Fund and Alger Health Sciences 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, P-2, 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 C shares will automatically convert to Class A shares on the fifth business day of the month following the tenth anniversary of the purchase date of a shareholder’s Class C shares, without the imposition of any sales load, fee or other charge. Class C shares held at certain dealers may convert to Class A shares earlier. At conversion, a proportionate amount of shares representing reinvested dividends and distributions will also be converted into Class A shares. Class I, P, P-2, Y and Z shares are sold to 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 expenses other than a class expense (not including advisory or custodian fees or other expenses related to the management of the Fund’s assets).

 

The Board has authorized a partial limitation on investors ability to purchase shares of the Alger Small Cap Focus Fund. Specifically Classes A, C, I, and Z shares will be available for purchase only by existing shareholders and certain other investors selected by Fred Alger & Company, LLC, the Fund’s distributor. Class Y shares will remain open to all qualifying investors.

 

NOTE 2 — Significant Accounting Policies:

 

(a) Investment Valuation: The Funds value their financial instruments at fair value using independent dealers or pricing services under policies approved by the Trust’s Board of Trustees (the “Board”). Investments held by the Funds 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 Time).

 

- 40 -

 

 

THE ALGER FUNDS

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

 

Investments in money market funds and short-term securities held by the Funds having a remaining maturity of sixty days or less are valued at amortized cost which approximates market value.

 

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 on the primary market or exchange on which they are traded as reported by an independent pricing service. 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 the basis of the 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 are valued at fair value, as determined in good faith pursuant to procedures established by the Board and described further herein.

 

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 Trust’s investment adviser, 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.

 

FASB 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.

 

- 41 -

 

 

THE ALGER FUNDS

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

 

·Level 1 – quoted prices in active markets for identical investments

 

·Level 2 – significant 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 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 valuations assigned to such securities by the Funds may significantly differ from the valuations that would have been assigned by the Funds had there been an active market for such securities.

 

Valuation processes are determined by a Valuation Committee (“Committee”) authorized by the Board and comprised of representatives of the Trust’s investment adviser and officers of the Trust. The Committee reports its fair valuation determinations and related valuation information to the Board. The Board is responsible for approving the 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 the previous day’s price.

 

- 42 -

 

 

THE ALGER FUNDS

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

 

(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 July 31, 2020 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.

 

Alger Capital Appreciation Fund  TOTAL   LEVEL 1   LEVEL 2   LEVEL 3 
COMMON STOCKS                    
Communication Services  $451,140,770   $426,037,091   $25,103,679   $— 
Consumer Discretionary   665,455,984    648,921,888    10,771,177    5,762,919 
Consumer Staples   10,680,404    10,680,404    —    — 
Financials   131,010,082    131,010,082    —    — 
Healthcare   385,351,888    385,351,888    —    — 
Industrials   115,962,533    112,435,642    3,526,891    — 
Information Technology   1,429,199,885    1,428,318,514    —    881,371 
Materials   82,753,721    82,753,721    —    — 
TOTAL COMMON STOCKS  $3,271,555,267   $3,225,509,230   $39,401,747   $6,644,290 
PREFERRED STOCKS                    
Information Technology   4,062,807    —    —    4,062,807 
REAL ESTATE INVESTMENT TRUST                    
Real Estate   38,049,775    38,049,775    —    — 
TOTAL INVESTMENTS IN SECURITIES  $3,313,667,849   $3,263,559,005   $39,401,747   $10,707,097 

 

Alger 25 Fund  TOTAL   LEVEL 1   LEVEL 2   LEVEL 3 
COMMON STOCKS                    
Communication Services  $2,821,733   $2,821,733   $          —   $            — 
Consumer Discretionary   4,152,800    4,152,800    —    — 
Financials   1,388,851    1,388,851    —    — 
Healthcare   1,149,297    1,149,297    —    — 
Industrials   901,686    901,686    —    — 
Information Technology   10,166,531    10,166,531    —    — 
Materials   736,037    736,037    —    — 
TOTAL COMMON STOCKS  $21,316,935   $21,316,935   $—   $— 
REAL ESTATE INVESTMENT TRUST                    
Real Estate   712,309    712,309    —    — 
TOTAL INVESTMENTS IN SECURITIES  $22,029,244   $22,029,244   $—   $— 

 

- 43 -

 

 

THE ALGER FUNDS

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

 

Alger 35 Fund  TOTAL   LEVEL 1   LEVEL 2   LEVEL 3 
COMMON STOCKS                    
Communication Services  $830,634   $830,634   $   —   $— 
Consumer Discretionary   2,809,721    2,809,721    —    — 
Consumer Staples   372,830    372,830    —    — 
Financials   340,823    340,823    —    — 
Healthcare   2,108,445    2,108,445    —    — 
Industrials   385,785    385,785    —    — 
Information Technology   6,170,718    6,170,718    —    — 
TOTAL COMMON STOCKS  $13,018,956   $13,018,956   $—   $— 
REAL ESTATE INVESTMENT TRUST                    
Real Estate   394,412    394,412    —    — 
TOTAL INVESTMENTS IN SECURITIES  $13,413,368   $13,413,368   $—   $— 

 

Alger Growth & Income Fund  TOTAL   LEVEL 1   LEVEL 2   LEVEL 3 
COMMON STOCKS                    
Communication Services  $13,801,074   $13,801,074   $   —   $— 
Consumer Discretionary   10,027,703    10,027,703    —    — 
Consumer Staples   8,786,304    8,786,304    —    — 
Energy   3,152,261    3,152,261    —    — 
Financials   13,198,549    13,198,549    —    — 
Healthcare   16,309,120    16,309,120    —    — 
Industrials   6,040,817    6,040,817    —    — 
Information Technology   28,904,045    28,904,045    —    — 
Materials   2,005,580    2,005,580    —    — 
Utilities   1,720,158    1,720,158    —    — 
TOTAL COMMON STOCKS  $103,945,611   $103,945,611   $—   $— 
MASTER LIMITED PARTNERSHIP                    
Energy   584,430    584,430    —    — 
REAL ESTATE INVESTMENT TRUST                    
Financials   607,262    607,262    —    — 
Real Estate   4,802,868    4,802,868    —    — 
TOTAL REAL ESTATE INVESTMENT TRUST  $5,410,130   $5,410,130   $—   $— 
TOTAL INVESTMENTS IN SECURITIES  $109,940,171   $109,940,171   $—   $— 

 

Alger Mid Cap Growth Fund  TOTAL   LEVEL 1   LEVEL 2   LEVEL 3 
COMMON STOCKS                    
Communication Services  $10,403,311   $10,403,311   $—   $— 
Consumer Discretionary   35,587,547    35,587,547    —    — 
Consumer Staples   4,139,150    4,139,150    —    — 
Financials   4,575,470    4,575,470    —    — 
Healthcare   50,248,643    48,239,669    2,008,974    — 
Industrials   21,631,720    21,631,720    —    — 
Information Technology   70,873,715    70,779,553    —    94,162 
Materials   2,168,993    2,168,993    —    — 
Real Estate   1,799,825    1,799,825    —    — 
TOTAL COMMON STOCKS  $201,428,374   $199,325,238   $2,008,974   $94,162 

 

- 44 -

 

 

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
 
Alger Mid Cap Growth Fund   TOTAL    LEVEL 1    LEVEL 2    LEVEL 3 
PREFERRED STOCKS                    
Healthcare  $173,492   $—   $—   $173,492 
Information Technology   434,056    —    —    434,056 
TOTAL PREFERRED STOCKS  $607,548   $—   $—   $607,548 
WARRANTS                    
Healthcare   1,601,435    —    1,601,435    — 
RIGHTS                    
Healthcare   1,829,183*   —    —*   1,829,183 
REAL ESTATE INVESTMENT TRUST                    
Real Estate   5,579,824    5,579,824    —    — 
TOTAL INVESTMENTS IN SECURITIES  $211,046,364   $204,905,062   $3,610,409   $2,530,893 

 

Alger Mid Cap Focus Fund   TOTAL    LEVEL 1    LEVEL 2    LEVEL 3 
COMMON STOCKS                    
Communication Services  $7,162,633   $7,162,633   $—   $— 
Consumer Discretionary   72,629,188    72,629,188    —    — 
Financials   4,735,039    4,735,039    —    — 
Healthcare   47,697,754    47,697,754    —    — 
Industrials   13,975,147    13,975,147    —    — 
Information Technology   73,604,070    73,604,070    —    — 
Real Estate   1,848,730    1,848,730    —    — 
TOTAL COMMON STOCKS  $221,652,561   $221,652,561   $—   $— 
TOTAL INVESTMENTS IN SECURITIES  $221,652,561   $221,652,561   $—   $— 

 

Alger Weatherbie Specialized Growth Fund   TOTAL    LEVEL 1    LEVEL 2    LEVEL 3 
COMMON STOCKS                    
Consumer Discretionary  $116,198,270   $116,198,270   $—   $— 
Energy   7,656,574    7,656,574    —    — 
Financials   66,570,701    66,570,701    —    — 
Healthcare   259,700,792    259,700,792    —    — 
Industrials   85,121,429    85,121,429    —    — 
Information Technology   245,221,693    245,221,693    —    — 
Real Estate   51,548,765    51,548,765    —    — 
TOTAL COMMON STOCKS  $832,018,224   $832,018,224   $—   $— 
PREFERRED STOCKS                    
Healthcare   182,864    —    —    182,864 
TOTAL INVESTMENTS IN SECURITIES  $832,201,088   $832,018,224   $—   $182,864 

 

- 45 -

 

 

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
 
Alger Small Cap Growth Fund   TOTAL    LEVEL 1    LEVEL 2    LEVEL 3 
COMMON STOCKS                    
Communication Services  $8,811,830   $8,811,830   $—   $— 
Consumer Discretionary   34,997,246    34,997,246    —    — 
Consumer Staples   5,412,922    5,412,922    —    — 
Energy   2,196,011    2,196,011    —    — 
Financials   8,113,181    8,113,181    —    — 
Healthcare   134,062,857    134,062,857    —    — 
Industrials   10,121,004    10,121,004    —    — 
Information Technology   86,314,155    86,314,155    —    — 
Materials   3,434,507    3,434,507    —    — 
TOTAL COMMON STOCKS  $293,463,713   $293,463,713   $—   $— 
PREFERRED STOCKS                    
Healthcare   40,044    —    —    40,044 
RIGHTS                    
Healthcare   541,824*   —    —*   541,824 
REAL ESTATE INVESTMENT TRUST                    
Real Estate   6,884,116    6,884,116    —    — 
TOTAL INVESTMENTS IN SECURITIES  $300,929,697   $300,347,829   $—   $581,868 

 

Alger Small Cap Focus Fund   TOTAL    LEVEL 1    LEVEL 2    LEVEL 3 
COMMON STOCKS                    
Communication Services  $61,201,402   $61,201,402   $—   $— 
Consumer Discretionary   572,090,414    572,090,414    —    — 
Financials   49,364,508    49,364,508    —    — 
Healthcare   2,484,569,978    2,484,569,978    —    — 
Industrials   236,081,127    236,081,127    —    — 
Information Technology   2,187,240,582    2,187,240,582    —    — 
Materials   77,940,921    77,940,921    —    — 
TOTAL COMMON STOCKS  $5,668,488,932   $5,668,488,932   $—   $— 
RIGHTS                    
Healthcare   36,906    —    —    36,906 
TOTAL INVESTMENTS IN SECURITIES  $5,668,525,838   $5,668,488,932   $—   $36,906 

 

Alger International Focus Fund   TOTAL    LEVEL 1    LEVEL 2    LEVEL 3 
COMMON STOCKS                    
Communication Services  $13,212,160   $2,017,860   $11,194,300   $— 
Consumer Discretionary   27,437,546    7,388,691    20,048,855    — 
Consumer Staples   7,351,768    —    7,351,768    — 
Energy   4,046,531    —    4,046,531    — 
Financials   20,536,373    5,499,834    15,036,539    — 
Healthcare   17,523,771    2,969,025    14,554,746    — 
Industrials   21,300,662    —    21,300,662    — 
Information Technology   27,833,744    7,550,498    20,283,246    — 
Materials   3,956,259    —    3,956,259    — 
TOTAL COMMON STOCKS  $143,198,814   $25,425,908   $117,772,906   $— 
TOTAL INVESTMENTS IN SECURITIES  $143,198,814   $25,425,908   $117,772,906   $— 

 

- 46 -

 

 

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
 
Alger Health Sciences Fund   TOTAL    LEVEL 1    LEVEL 2    LEVEL 3 
COMMON STOCKS                    
Financials  $1,627,141   $1,627,141   $—   $— 
Healthcare   295,065,322    287,081,718    7,983,604    — 
TOTAL COMMON STOCKS  $296,692,463   $288,708,859   $7,983,604   $— 
PREFERRED STOCKS                    
Healthcare   708,919    —    —    708,919 
WARRANTS                    
Healthcare   1,753,525    —    1,753,525    — 
RIGHTS                    
Healthcare   6,488,403*   421,715    —*   6,066,688 
TOTAL INVESTMENTS IN SECURITIES  $305,643,310   $289,130,574   $9,737,129   $6,775,607 

 

*Alger Mid Cap Growth Fund’s, Alger Small Cap Growth Fund’s and Alger Health Sciences Fund’s holdings of BioNTech Pharmaceuticals, Ltd.’s rights are classified as a Level 2 investment and fair valued at zero as of July 31, 2020.

 

   FAIR VALUE 
   MEASUREMENTS 
   USING SIGNIFICANT 
   UNOBSERVABLE 
   INPUTS (LEVEL 3) 
Alger Capital Appreciation Fund      Common Stocks 
Opening balance at November 1, 2019  $6,002,522 
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   641,768 
Purchases and sales     
Purchases   — 
Sales   — 
Closing balance at July 31, 2020   6,644,290 
Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2020  $641,768 
     
Alger Capital Appreciation Fund     Preferred Stocks 
Opening balance at November 1, 2019  $              4,062,807 
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 July 31, 2020   4,062,807 
Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2020  $— 

 

- 47 -

 

 

THE ALGER FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
   FAIR VALUE 
   MEASUREMENTS 
    USING SIGNIFICANT 
    UNOBSERVABLE 
    INPUTS (LEVEL 3) 
Alger Mid Cap Growth Fund   Common Stocks 
Opening balance at November 1, 2019  $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 July 31, 2020   94,162 
Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2020  $— 
      
Alger Mid Cap Growth Fund   Preferred Stocks  
Opening balance at November 1, 2019  $               666,843 
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   (59,295)
Purchases and sales     
Purchases   — 
Sales   — 
Closing balance at July 31, 2020   607,548 
Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2020  $(59,295)
      
Alger Mid Cap Growth Fund  Rights 
Opening balance at November 1, 2019  $             1,905,891 
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   (76,708)
Purchases and sales     
Purchases   — 
Sales   — 
Closing balance at July 31, 2020   1,829,183 
Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2020  $(76,708)

 

- 48 -

 

 

THE ALGER FUNDS

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

 

   FAIR VALUE 
   MEASUREMENTS 
   USING SIGNIFICANT 
   UNOBSERVABLE 
   INPUTS (LEVEL 3) 
Alger Weatherbie Specialized Growth Fund      Preferred Stocks 
Opening balance at November 1, 2019  $245,362 
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   (62,498)
Purchases and sales     
Purchases   — 
Sales   — 
Closing balance at July 31, 2020   182,864 
Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2020  $(62,498)

 

   FAIR VALUE 
   MEASUREMENTS 
   USING SIGNIFICANT 
   UNOBSERVABLE 
   INPUTS (LEVEL 3) 
Alger Small Cap Growth Fund      Preferred Stocks 
Opening balance at November 1, 2019  $53,729 
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   (13,685)
Purchases and sales     
Purchases   — 
Sales   — 
Closing balance at July 31, 2020   40,044 
Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2020  $(13,685)

 

- 49 -

 

 

THE ALGER FUNDS

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

 

   FAIR VALUE 
   MEASUREMENTS 
   USING SIGNIFICANT 
   UNOBSERVABLE 
   INPUTS (LEVEL 3) 
Alger Small Cap Growth Fund       Rights 
Opening balance at November 1, 2019  $564,546 
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   (22,722)
Purchases and sales     
Purchases   — 
Sales   — 
Closing balance at July 31, 2020   541,824 
Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2020  $(22,722)
      
   FAIR VALUE 
   MEASUREMENTS 
    USING SIGNIFICANT 
    UNOBSERVABLE 
    INPUTS (LEVEL 3) 
Alger Small Cap Focus Fund       Rights 
Opening balance at November 1, 2019  $38,453 
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   (1,547)
Purchases and sales     
Purchases   — 
Sales   — 
Closing balance at July 31, 2020   36,906 
Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2020  $(1,547)

 

- 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, 2019  $951,208 
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   (242,289)
Purchases and sales     
Purchases   — 
Sales   — 
Closing balance at July 31, 2020   708,919 
Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2020    $ (242,289 )
      
Alger Health Sciences Fund  Rights 
Opening balance at November 1, 2019  $6,321,097 
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   (254,409)
Purchases and sales     
Purchases   — 
Sales   — 
Closing balance at July 31, 2020   6,066,688 
Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2020    $ (254,409 )

 

The following table provides quantitative information about the Funds’ Level 3 fair value measurements of the Funds’ investments as of July 31, 2020. The table below is not intended to be all-inclusive, but rather provides information on the Level 3 inputs as they relate to the Funds’ fair value measurements.

 

   Fair Value  Valuation  Unobservable     Weighted  
   July 31, 2020  Methodology  Input  Input/Range  Average Inputs  
Alger Capital Appreciation Fund  
Common Stocks  $881,371  Market Approach  Transaction Price  N/A  N/A  
Common Stocks   5,762,919  Income Approach  Discount Rate  1.00%-5.00%  N/A  
Preferred Stocks   4,062,807  Market Approach  Transaction Price  N/A  N/A  

 

- 51 -

 

 

THE ALGER FUNDS

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

 

   Fair Value  Valuation  Unobservable     Weighted  
   July 31, 2020  Methodology  Input  Input/Range  Average Inputs  
Alger Mid Cap Growth Fund                  
Common Stocks  $94,162  Market Approach  Transaction Price  N/A  N/A  
Preferred Stocks   434,056  Market Approach  Transaction Price  N/A  N/A  
Preferred Stocks   173,492  Income Approach  Discount Rate  55.00%-60.00%  N/A  
Rights   1,829,183  Income Approach  Discount Rate  4.24%-5.10%  N/A  
Alger Weatherbie Specialized Growth Fund                  
Preferred Stocks  $182,864  Income Approach  Discount Rate  55.00%-60.00%  N/A  
Alger Small Cap Growth Fund                  
Preferred Stocks  $40,044  Income Approach  Discount Rate  55.00%-60.00%  N/A  
Rights   541,824  Income Approach  Discount Rate  4.24%-5.10%  N/A  
Alger Small Cap Focus Fund                  
Rights  $36,906  Income Approach  Discount Rate  4.24%-5.10%  N/A  
Alger Health Sciences Fund                  
Preferred Stocks  $708,919  Income Approach  Discount Rate  55.00%-60.00%  N/A  
Rights   6,066,688  Income Approach  Discount Rate  4.24%-5.10%  N/A  

 

The significant unobservable inputs used in the fair value measurement of the Funds’ 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 these inputs could result in significantly higher or lower fair value measurements than those noted in the table above. Generally, all other things being equal, increases in revenue and EBITDA multiples, decreases in discount rates, and increases in the probabilities of success result in higher fair value measurements, whereas decreases in revenues and EBITDA multiples, increases in discount rates, and decreases in the probabilities of success result in lower fair value measurements.

 

Certain of the Funds’ assets and liabilities are held at carrying amount or face value, which approximates fair value for financial statements purposes. As of July 31, 2020, such assets were categorized within the ASC 820 disclosure hierarchy as follows:

 

- 52 -

 

 

THE ALGER FUNDS

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

 

   TOTAL   LEVEL 1   LEVEL 2   LEVEL 3 
Cash, foreign cash and cash equivalents:                    
Alger Capital Appreciation Fund  $672,101   $–   $672,101   $– 
Alger 25 Fund   42,015    –    42,015    – 
Alger 35 Fund   329,598    –    329,598    – 
Alger Growth & Income Fund   421,271    –    421,271    – 
Alger Mid Cap Growth Fund   4,506,161    –    4,506,161    – 
Alger Mid Cap Focus Fund   6,315,492    –    6,315,492    – 
Alger Weatherbie Specialized Growth Fund   30,285,152    –    30,285,152    – 
Alger Small Cap Growth Fund   35,923,883    –    35,923,883    – 
Alger Small Cap Focus Fund   52,143,189    –    52,143,189    – 
Alger International Focus Fund   1,587,541    16,467    1,571,074    – 
Alger Health Sciences Fund   4,316,078    –    4,316,078    – 

 

NOTE 4 — Derivatives:

 

FASB 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—Certain Funds seek to capture the majority of the returns associated with equity market investments. To meet this investment goal, these 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 may purchase call options to increase their exposure to the stock market and also provide diversification of risk. The Funds may 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 market investments but with reduced volatility and returns that are augmented with the cash flows from the sale of options. During the period ended July 31, 2020, 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 clearinghouse that acts as an intermediary between buyer and seller, receiving initial and maintenance margin from both, and guaranteeing performance of the option contract.

 

- 53 -

 

 

THE ALGER FUNDS

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

 

Forward Foreign Currency Contracts—In connection with portfolio purchases and sales of securities denominated in foreign currencies, the Funds may enter into forward foreign currency contracts. Additionally, each Fund may enter into such contracts to economically hedge certain other foreign currency denominated investments. These contracts are valued at the current cost of covering or offsetting such contracts. In the event that counterparties fail to settle these currency contracts or the related foreign security trades, a Fund could be exposed to foreign currency fluctuations.

 

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 July 31, 2020. Purchase and sale transactions, interest income and dividend income earned during the period were as follows:

 

                           Net Increase     
   Shares/           Shares/           (Decrease)     
   Par at           Par at   Dividend/       in   Value at 
   October 31,   Purchases/   Sales/   July 31,   Interest   Realized   Unrealized   July 31, 
Security  2019   Conversion   Conversion   2020   Income   Gain (Loss)   App(Dep)   2020 
Alger Mid Cap Growth Fund                                        
Preferred Stocks                                        
Prosetta Biosciences, Inc., Series D   219,610    –    –    219,610   $–   $–   $(59,295)  $173,492 
Total                      $–   $–   $(59,295)  $173,492 

 

                           Net Increase     
   Shares/           Shares/           (Decrease)     
   Par at           Par at   Dividend/       in   Value at 
   October 31,   Purchases/   Sales/   July 31,   Interest   Realized   Unrealized   July 31, 
Security  2019   Conversion   Conversion   2020   Income   Gain (Loss)   App(Dep)   2020 
Alger Weatherbie Specialized Growth Fund                                        
Preferred Stocks                                        
Prosetta Biosciences, Inc., Series D    231,474    –    –    231,474   $–   $–   $(62,498)  $182,864 
Total                      $–   $–   $(62,498)  $182,864 

 

                           Net Increase     
   Shares/           Shares/           (Decrease)     
   Par at           Par at   Dividend/       in   Value at 
   October 31,   Purchases/   Sales/   July 31,   Interest   Realized   Unrealized   July 31, 
Security  2019   Conversion   Conversion   2020   Income   Gain (Loss)   App(Dep)   2020 
Alger Small Cap Growth Fund
Preferred Stocks                                        
Prosetta Biosciences, Inc., Series D   50,688    –    –    50,688   $–   $–   $(13,685)  $40,044 
Total                      $–   $–   $(13,685)  $40,044 

 

- 54 -

 

 

THE ALGER FUNDS

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

 

                           Net Increase     
   Shares/           Shares/           (Decrease)     
   Par at           Par at   Dividend/       in   Value at 
   October 31,   Purchases/   Sales/   July 31,   Interest   Realized   Unrealized   July 31, 
Security  2019   Conversion   Conversion   2020   Income   Gain (Loss)   App(Dep)   2020 
Alger Health Sciences Fund
Preferred Stocks                                        
Prosetta Biosciences, Inc., Series D   897,366    –    –    897,366   $–   $–   $(242,289)  $708,919 
Total                      $–   $–   $(242,289)  $708,919 

 

- 55 -