THE ALGER FUNDS II
QUARTERLY REPORT
JULY 31, 2021
THE ALGER FUNDS II | ALGER SPECTRA FUND | |
Schedule of Investments July 31, 2021 (Unaudited) |
COMMON STOCKS—106.7% | SHARES | VALUE | ||||||
ADVERTISING—0.7% | ||||||||
Magnite, Inc.* | 2,050,519 | $ | 62,130,726 | |||||
AEROSPACE & DEFENSE—3.5% | ||||||||
HEICO Corp., Cl. A+ | 1,254,689 | 152,181,229 | ||||||
Teledyne Technologies, Inc.* | 200,105 | 90,601,541 | ||||||
Textron, Inc. | 737,793 | 50,915,095 | ||||||
293,697,865 | ||||||||
AIR FREIGHT & LOGISTICS—1.0% | ||||||||
XPO Logistics, Inc.* | 614,700 | 85,252,743 | ||||||
APPAREL ACCESSORIES & LUXURY GOODS—1.1% | ||||||||
Capri Holdings Ltd.* | 590,789 | 33,267,329 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 79,309 | 63,497,449 | ||||||
96,764,778 | ||||||||
APPLICATION SOFTWARE—10.6% | ||||||||
Adobe, Inc.*,+ | 384,737 | 239,164,061 | ||||||
Avalara, Inc.* | 350,026 | 58,513,847 | ||||||
Bill.com Holdings, Inc.* | 327,627 | 67,759,816 | ||||||
Cadence Design Systems, Inc.* | 239,229 | 35,322,162 | ||||||
Coupa Software, Inc.* | 119,356 | 25,900,252 | ||||||
Datadog, Inc., Cl. A* | 766,271 | 84,826,200 | ||||||
Five9, Inc.* | 373,414 | 75,164,504 | ||||||
HubSpot, Inc.* | 72,564 | 43,249,595 | ||||||
Intuit, Inc. | 179,108 | 94,921,867 | ||||||
Paylocity Holding Corp.* | 410,594 | 85,181,831 | ||||||
The Trade Desk, Inc., Cl. A* | 1,039,240 | 85,124,148 | ||||||
895,128,283 | ||||||||
AUTOMOBILE MANUFACTURERS—2.3% | ||||||||
General Motors Co.* | 983,826 | 55,920,670 | ||||||
Tesla, Inc.* | 198,459 | 136,381,025 | ||||||
192,301,695 | ||||||||
AUTOMOTIVE RETAIL—0.9% | ||||||||
Carvana Co., Cl. A* | 66,260 | 22,366,725 | ||||||
Lithia Motors, Inc., Cl. A | 136,467 | 51,478,082 | ||||||
73,844,807 | ||||||||
BIOTECHNOLOGY—1.3% | ||||||||
Natera, Inc.* | 948,079 | 108,574,007 | ||||||
CASINOS & GAMING—2.2% | ||||||||
DraftKings, Inc., Cl. A* | 1,114,688 | 54,062,368 | ||||||
MGM Resorts International | 2,740,197 | 102,839,594 | ||||||
Penn National Gaming, Inc.* | 418,764 | 28,635,082 | ||||||
185,537,044 | ||||||||
CONSUMER FINANCE—1.1% | ||||||||
Upstart Holdings, Inc.* | 739,063 | 89,249,248 | ||||||
DATA PROCESSING & OUTSOURCED SERVICES—8.6% | ||||||||
Marqeta, Inc., Cl. A* | 1,487,040 | 39,897,283 | ||||||
PayPal Holdings, Inc.*,+ | 967,928 | 266,693,202 | ||||||
Square, Inc., Cl. A* | 687,070 | 169,884,928 | ||||||
Visa, Inc., Cl. A+ | 1,015,197 | 250,134,389 | ||||||
726,609,802 |
- 2 -
THE ALGER FUNDS II | ALGER SPECTRA FUND | |
Schedule of Investments July 31, 2021 (Unaudited) (Continued) |
COMMON STOCKS—106.7% (CONT.) | SHARES | VALUE | ||||||
DIVERSIFIED BANKS—0.7% | ||||||||
Wells Fargo & Co. | 1,266,346 | $ | 58,175,935 | |||||
DIVERSIFIED SUPPORT SERVICES—1.9% | ||||||||
Cintas Corp.+ | 273,976 | 107,995,860 | ||||||
Copart, Inc.* | 346,925 | 50,997,975 | ||||||
158,993,835 | ||||||||
ELECTRICAL COMPONENTS & EQUIPMENT—0.3% | ||||||||
Generac Holdings, Inc.* | 67,839 | 28,448,963 | ||||||
FINANCIAL EXCHANGES & DATA—2.3% | ||||||||
Coinbase Global, Inc., Cl. A* | 367,979 | 87,056,472 | ||||||
S&P Global, Inc. | 254,109 | 108,941,610 | ||||||
195,998,082 | ||||||||
FOOTWEAR—1.1% | ||||||||
NIKE, Inc., Cl. B+ | 548,321 | 91,849,251 | ||||||
HEALTHCARE EQUIPMENT—6.2% | ||||||||
Danaher Corp.+ | 473,908 | 140,982,891 | ||||||
Dexcom, Inc.* | 122,074 | 62,930,368 | ||||||
IDEXX Laboratories, Inc.* | 33,297 | 22,593,013 | ||||||
Insulet Corp.* | 453,660 | 126,884,165 | ||||||
Intuitive Surgical, Inc.* | 174,619 | 173,127,754 | ||||||
526,518,191 | ||||||||
HEALTHCARE SERVICES—0.7% | ||||||||
Guardant Health, Inc.* | 577,082 | 63,363,604 | ||||||
HEALTHCARE SUPPLIES—0.9% | ||||||||
Align Technology, Inc.* | 111,489 | 77,574,046 | ||||||
HEALTHCARE TECHNOLOGY—1.6% | ||||||||
Veeva Systems, Inc., Cl. A* | 407,144 | 135,460,880 | ||||||
HOME IMPROVEMENT RETAIL—0.7% | ||||||||
Lowe's Cos., Inc. | 327,849 | 63,173,224 | ||||||
HOTELS RESORTS & CRUISE LINES—0.9% | ||||||||
Expedia Group, Inc.* | 477,652 | 76,839,877 | ||||||
HUMAN RESOURCE & EMPLOYMENT SERVICES—0.8% | ||||||||
Upwork, Inc.* | 1,313,631 | 68,032,949 | ||||||
INTERACTIVE HOME ENTERTAINMENT—1.4% | ||||||||
Sea Ltd.#,* | 165,263 | 45,639,030 | ||||||
Take-Two Interactive Software, Inc.* | 425,404 | 73,773,562 | ||||||
119,412,592 | ||||||||
INTERACTIVE MEDIA & SERVICES—8.1% | ||||||||
Alphabet, Inc., Cl. C*,+ | 174,009 | 470,593,420 | ||||||
Genius Sports Ltd.* | 3,006,480 | 51,470,938 | ||||||
Pinterest, Inc., Cl. A*,+ | 1,685,818 | 99,294,680 | ||||||
Snap, Inc., Cl. A* | 844,837 | 62,872,769 | ||||||
684,231,807 | ||||||||
INTERNET & DIRECT MARKETING RETAIL—6.6% | ||||||||
Altaba, Inc.*,@,(a),+ | 606,454 | 7,137,963 | ||||||
Amazon.com, Inc.*,+ | 146,232 | 486,600,141 | ||||||
MercadoLibre, Inc.* | 40,161 | 63,000,561 | ||||||
556,738,665 |
- 3 -
THE ALGER FUNDS II | ALGER SPECTRA FUND | |
Schedule of Investments July 31, 2021 (Unaudited) (Continued) |
COMMON STOCKS—106.7% (CONT.) | SHARES | VALUE | ||||||
INTERNET SERVICES & INFRASTRUCTURE—3.1% | ||||||||
BigCommerce Holdings, Inc.* | 896,069 | $ | 58,029,428 | |||||
Shopify, Inc., Cl. A* | 108,688 | 163,024,392 | ||||||
Snowflake, Inc., Cl. A* | 157,764 | 41,921,050 | ||||||
262,974,870 | ||||||||
INVESTMENT BANKING & BROKERAGE—0.4% | ||||||||
The Goldman Sachs Group, Inc. | 80,896 | 30,326,292 | ||||||
LIFE SCIENCES TOOLS & SERVICES—1.3% | ||||||||
Bio-Techne Corp. | 142,827 | 68,876,892 | ||||||
Repligen Corp.* | 183,247 | 45,023,788 | ||||||
113,900,680 | ||||||||
MANAGED HEALTHCARE—1.6% | ||||||||
Progyny, Inc.* | 357,424 | 19,904,942 | ||||||
UnitedHealth Group, Inc.+ | 274,830 | 113,290,423 | ||||||
133,195,365 | ||||||||
MOVIES & ENTERTAINMENT—2.5% | ||||||||
Live Nation Entertainment, Inc.* | 209,060 | 16,492,743 | ||||||
Roku, Inc., Cl. A* | 449,732 | 192,624,713 | ||||||
209,117,456 | ||||||||
OIL & GAS EQUIPMENT & SERVICES—0.5% | ||||||||
Core Laboratories NV | 1,257,269 | 41,942,494 | ||||||
PHARMACEUTICALS—0.7% | ||||||||
Catalent, Inc.* | 379,994 | 45,527,081 | ||||||
Green Thumb Industries, Inc.* | 439,282 | 13,051,362 | ||||||
58,578,443 | ||||||||
RAILROADS—0.4% | ||||||||
Union Pacific Corp. | 171,145 | 37,439,680 | ||||||
REAL ESTATE SERVICES—0.3% | ||||||||
FirstService Corp. | 119,400 | 22,203,624 | ||||||
RESEARCH & CONSULTING SERVICES—1.5% | ||||||||
CoStar Group, Inc.*,+ | 1,432,340 | 127,263,409 | ||||||
RESTAURANTS—2.4% | ||||||||
Chipotle Mexican Grill, Inc., Cl. A* | 36,581 | 68,166,499 | ||||||
Shake Shack, Inc., Cl. A*,+ | 1,149,703 | 115,591,140 | ||||||
Starbucks Corp. | 173,310 | 21,045,033 | ||||||
204,802,672 | ||||||||
SEMICONDUCTOR EQUIPMENT—5.0% | ||||||||
Applied Materials, Inc. | 1,124,707 | 157,380,250 | ||||||
Enphase Energy, Inc.* | 200,747 | 38,061,631 | ||||||
Lam Research Corp.+ | 241,424 | 153,886,072 | ||||||
SolarEdge Technologies, Inc.* | 274,968 | 71,348,697 | ||||||
420,676,650 | ||||||||
SEMICONDUCTORS—5.1% | ||||||||
Advanced Micro Devices, Inc.*,+ | 878,108 | 93,246,289 | ||||||
NVIDIA Corp.+ | 709,096 | 138,266,629 | ||||||
NXP Semiconductors NV | 108,732 | 22,441,197 | ||||||
QUALCOMM, Inc.+ | 428,346 | 64,166,231 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd.# | 684,775 | 79,872,156 |
- 4 -
THE ALGER FUNDS II | ALGER SPECTRA FUND | |
Schedule of Investments July 31, 2021 (Unaudited) (Continued) |
COMMON STOCKS—106.7% (CONT.) | SHARES | VALUE | |||||||
SEMICONDUCTORS—5.1% (CONT.) Universal Display Corp. | 152,461 | $ | 35,750,580 | ||||||
433,743,082 | |||||||||
SYSTEMS SOFTWARE—9.2% Crowdstrike Holdings, Inc., Cl. A* | 305,609 | 77,505,499 | |||||||
Microsoft Corp.+ | 2,455,776 | 699,675,140 | |||||||
777,180,639 | |||||||||
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—4.3% Apple, Inc.+ | 2,519,259 | 367,459,118 | |||||||
TRADING COMPANIES & DISTRIBUTORS—0.5% Herc Holdings, Inc.* | 176,923 | 21,945,529 | |||||||
SiteOne Landscape Supply, Inc.* | 112,189 | 19,608,393 | |||||||
41,553,922 | |||||||||
TRUCKING—0.4% Lyft, Inc., Cl. A* | 672,180 | 37,184,998 | |||||||
TOTAL COMMON STOCKS (Cost $5,904,758,789) | 9,033,446,293 | ||||||||
PREFERRED STOCKS—0.0% | SHARES | VALUE | |||||||
BIOTECHNOLOGY—0.0% Prosetta Biosciences, Inc., Series D*,@,(a),(b) | 2,912,012 | 436,802 | |||||||
(Cost $13,104,054) | 436,802 | ||||||||
REAL ESTATE INVESTMENT TRUST—0.8% | SHARES | VALUE | |||||||
RETAIL—0.8% Simon Property Group, Inc. | 517,806 | 65,512,815 | |||||||
(Cost $52,453,135) | 65,512,815 | ||||||||
SPECIAL PURPOSE VEHICLE—0.2% | SHARES | VALUE | |||||||
DATA PROCESSING & OUTSOURCED SERVICES—0.2% Crosslink Ventures Capital LLC, Cl. A*,@,(a),(b) | 294 | 11,525,976 | |||||||
Crosslink Ventures Capital LLC, Cl. B*,@,(a),(b) | 183 | 7,174,332 | |||||||
18,700,308 | |||||||||
TOTAL SPECIAL PURPOSE VEHICLE (Cost $11,925,000) | 18,700,308 | ||||||||
Total Investments (Cost $5,982,240,978) | 107.7 | % | $ | 9,118,096,218 | |||||
Affiliated Securities (Cost $25,029,054) | 19,137,110 | ||||||||
Unaffiliated Securities (Cost $5,957,211,924) | 9,098,959,108 | ||||||||
Securities Sold Short (Proceeds $669,347,126) | (7.8 | )% | (659,769,721 | ) | |||||
Other Assets in Excess of Liabilities | 0.1 | % | 9,640,009 | ||||||
NET ASSETS | 100.0 | % | $ | 8,467,966,506 |
+ All or a portion of this security is held as collateral for securities sold short.
# 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.
* Non-income producing security.
- 5 -
THE ALGER FUNDS II | ALGER SPECTRA FUND | |
Schedule of Investments July 31, 2021 (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.
Acquisition | Acquisition | % of net assets (Acquisition | Market | % of net assets as of | ||
Security | Date(s) | Cost | Date) | Value | 7/31/2021 | |
Altaba, Inc. | 10/24/18 | $1,704,939 | 0.03% | $1,141,490 | 0.01% | |
Altaba, Inc. | 10/25/18 | 2,562,470 | 0.04% | 1,707,497 | 0.02% | |
Altaba, Inc. | 10/29/18 | 2,492,386 | 0.04% | 1,729,378 | 0.02% | |
Altaba, Inc. | 10/30/18 | 1,640,707 | 0.03% | 1,159,863 | 0.01% | |
Altaba, Inc. | 10/31/18 | 591,342 | 0.01% | 397,944 | 0.01% | |
Altaba, Inc. | 11/6/18 | 2,386,078 | 0.04% | 1,001,791 | 0.01% | |
Crosslink Ventures Capital LLC, Cl. A | 10/2/20 | 7,350,000 | 0.10% | 11,525,976 | 0.14% | |
Crosslink Ventures Capital LLC, Cl. B | 12/16/20 | 4,575,000 | 0.06% | 7,174,332 | 0.08% | |
Prosetta Biosciences, Inc., Series D | 2/6/15 | 13,104,054 | 0.28% | 436,802 | 0.01% | |
Total | $26,275,073 | 0.31% |
See Notes to Financial Statements.
- 6 -
THE ALGER FUNDS II | ALGER SPECTRA FUND | |
Schedule of Investments July 31, 2021 (Unaudited) (Continued) |
COMMON STOCKS—(7.6)% | SHARES | VALUE | ||||||
AEROSPACE & DEFENSE—(0.1)% Virgin Galactic Holdings, Inc. | (188,491 | ) | $ | (5,652,845 | ) | |||
AUTO PARTS & EQUIPMENT—(0.1)% Luminar Technologies, Inc., Cl. A | (319,871 | ) | (5,885,626 | ) | ||||
QuantumScape Corp., Cl. A | (274,596 | ) | (6,290,994 | ) | ||||
(12,176,620 | ) | |||||||
BIOTECHNOLOGY—(0.1)% Amgen, Inc. | (34,822 | ) | (8,410,906 | ) | ||||
DEPARTMENT STORES—(0.3)% Nordstrom, Inc. | (666,613 | ) | (22,064,890 | ) | ||||
FOOD RETAIL—(0.2)% The Kroger Co. | (489,213 | ) | (19,910,969 | ) | ||||
HOUSEHOLD PRODUCTS—(0.6)% Church & Dwight Co., Inc. | (497,205 | ) | (43,048,009 | ) | ||||
Energizer Holdings, Inc. | (176,835 | ) | (7,577,380 | ) | ||||
(50,625,389 | ) | |||||||
INDUSTRIAL CONGLOMERATES—(0.8)% 3M Co. | (326,376 | ) | (64,602,865 | ) | ||||
INTERACTIVE MEDIA & SERVICES—(0.4)% Twitter, Inc. | (456,616 | ) | (31,848,966 | ) | ||||
INTERNET & DIRECT MARKETING RETAIL—(0.2)% Wayfair, Inc., Cl. A | (62,846 | ) | (15,168,511 | ) | ||||
INTERNET SERVICES & INFRASTRUCTURE—(0.1)% SolarWinds Corp. | (464,545 | ) | (5,221,486 | ) | ||||
IT CONSULTING & OTHER SERVICES—(0.5)% International Business Machines Corp. | (304,238 | ) | (42,885,389 | ) | ||||
MARKET INDICES—(1.5)% Invesco QQQ Trust Series 1 | (235,063 | ) | (85,696,918 | ) | ||||
iShares Russell Mid-Cap Growth ETF | (374,274 | ) | (42,775,776 | ) | ||||
(128,472,694 | ) | |||||||
METAL & GLASS CONTAINERS—0.0% Silgan Holdings, Inc. | (85,872 | ) | (3,479,533 | ) | ||||
MOVIES & ENTERTAINMENT—(0.2)% Spotify Technology SA | (79,069 | ) | (18,080,708 | ) | ||||
OTHER DIVERSIFIED FINANCIAL SERVICES—(0.4)% iShares 20+ Year Treasury Bond ETF | (205,171 | ) | (30,677,168 | ) | ||||
PACKAGED FOODS & MEATS—(0.7)% Campbell Soup Co. | (530,515 | ) | (23,194,116 | ) | ||||
General Mills, Inc. | (595,450 | ) | (35,048,187 | ) | ||||
(58,242,303 | ) | |||||||
PUBLISHING—(0.3)% News Corp., Cl. A | (1,072,789 | ) | (26,422,793 | ) | ||||
SEMICONDUCTORS—(0.2)% Intel Corp. | (296,860 | ) | (15,947,319 | ) |
- 7 -
THE ALGER FUNDS II | ALGER SPECTRA FUND | |
Schedule of Investments July 31, 2021 (Unaudited) (Continued) |
COMMON STOCKS—(7.6)% (CONT.) | SHARES | VALUE | ||||||
SYSTEMS SOFTWARE—(0.2)% Teradata Corp. | (445,858 | ) | $ | (22,141,308 | ) | |||
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—(0.3)% Diebold Nixdorf, Inc. | (861,272 | ) | (8,965,842 | ) | ||||
Logitech International SA | (178,264 | ) | (19,439,689 | ) | ||||
(28,405,531 | ) | |||||||
TRADING COMPANIES & DISTRIBUTORS—(0.4)% Fastenal Co. | (563,681 | ) | (30,872,808 | ) | ||||
TOTAL COMMON STOCKS | ||||||||
(Proceeds $650,741,566) | $ | (641,311,001 | ) | |||||
REAL ESTATE INVESTMENT TRUST—(0.2)% | SHARES | VALUE | ||||||
HEALTHCARE—(0.2)% Omega Healthcare Investors, Inc. | (508,785 | ) | (18,458,720 | ) | ||||
(Proceeds $18,605,560) | $ | (18,458,720 | ) | |||||
Total Securities Sold Short | ||||||||
(Proceeds $669,347,126) | $ | (659,769,721 | ) |
See Notes to Financial Statements.
- 8 -
THE ALGER FUNDS II | ALGER SPECTRA FUND | |
Schedule of Investments July 31, 2021 (Unaudited) (Continued) |
COMMON STOCKS—98.7% | SHARES | VALUE | ||||||
ADVERTISING—0.7% | ||||||||
Magnite, Inc.*,+ | 171,810 | $ | 5,205,843 | |||||
AEROSPACE & DEFENSE—4.8% | ||||||||
HEICO Corp.+ | 62,927 | 8,510,877 | ||||||
HEICO Corp., Cl. A+ | 53,792 | 6,524,431 | ||||||
Kratos Defense & Security Solutions, Inc.*,+ | 74,319 | 2,021,477 | ||||||
Textron, Inc. | 42,682 | 2,945,485 | ||||||
TransDigm Group, Inc.*,+ | 28,475 | 18,255,038 | ||||||
38,257,308 | ||||||||
AIR FREIGHT & LOGISTICS—0.6% | ||||||||
XPO Logistics, Inc.* | 32,341 | 4,485,373 | ||||||
APPAREL RETAIL—0.8% | ||||||||
MYT Netherlands Parent BV#,* | 227,600 | 6,563,984 | ||||||
APPLICATION SOFTWARE—9.9% | ||||||||
Adobe, Inc.* | 7,348 | 4,567,737 | ||||||
Altair Engineering, Inc., Cl. A* | 2,802 | 195,468 | ||||||
Avalara, Inc.* | 20,451 | 3,418,794 | ||||||
Bill.com Holdings, Inc.* | 20,337 | 4,206,098 | ||||||
Cerence, Inc.* | 49,410 | 5,312,069 | ||||||
Coupa Software, Inc.* | 7,292 | 1,582,364 | ||||||
Datadog, Inc., Cl. A* | 4,281 | 473,907 | ||||||
Dynatrace, Inc.* | 62,881 | 4,016,210 | ||||||
Ebix, Inc.+ | 51,175 | 1,546,509 | ||||||
Everbridge, Inc.*,+ | 15,890 | 2,243,986 | ||||||
Five9, Inc.* | 17,411 | 3,504,660 | ||||||
HubSpot, Inc.* | 7,720 | 4,601,274 | ||||||
LivePerson, Inc.* | 28,683 | 1,826,820 | ||||||
Manhattan Associates, Inc.* | 50,248 | 8,021,088 | ||||||
Paylocity Holding Corp.*,+ | 94,802 | 19,667,623 | ||||||
PTC, Inc.* | 13,919 | 1,885,329 | ||||||
SEMrush Holdings, Inc., Cl. A* | 47,972 | 958,960 | ||||||
Sprout Social, Inc., Cl. A* | 62,473 | 5,550,101 | ||||||
SPS Commerce, Inc.*,+ | 22,937 | 2,498,986 | ||||||
The Trade Desk, Inc., Cl. A*,+ | 5,290 | 433,304 | ||||||
Vertex, Inc., Cl. A* | 138,927 | 2,625,720 | ||||||
79,137,007 | ||||||||
ASSET MANAGEMENT & CUSTODY BANKS—2.0% | ||||||||
Hamilton Lane, Inc., Cl. A+ | 75,634 | 7,033,962 | ||||||
StepStone Group, Inc., Cl. A+ | 201,061 | 9,150,286 | ||||||
16,184,248 | ||||||||
AUTOMOBILE MANUFACTURERS—1.2% | ||||||||
General Motors Co.* | 94,811 | 5,389,057 | ||||||
Tesla, Inc.* | 6,083 | 4,180,238 | ||||||
9,569,295 | ||||||||
AUTOMOTIVE RETAIL—1.0% | ||||||||
Advance Auto Parts, Inc. | 8,625 | 1,829,018 | ||||||
Carvana Co., Cl. A* | 9,493 | 3,204,457 | ||||||
Lithia Motors, Inc., Cl. A | 8,465 | 3,193,167 | ||||||
8,226,642 |
- 9 -
THE ALGER FUNDS II | ALGER SPECTRA FUND | |
Schedule of Investments July 31, 2021 (Unaudited) (Continued) |
COMMON STOCKS—98.7% (CONT.) | SHARES | VALUE | ||||||
BIOTECHNOLOGY—6.0% | ||||||||
ACADIA Pharmaceuticals, Inc.*,+ | 300,054 | $ | 6,490,168 | |||||
BioMarin Pharmaceutical, Inc.* | 27,472 | 2,107,926 | ||||||
Celldex Therapeutics, Inc.* | 45,852 | 2,006,025 | ||||||
Forte Biosciences, Inc.* | 183,247 | 5,490,080 | ||||||
Natera, Inc.*,+ | 248,217 | 28,425,811 | ||||||
Puma Biotechnology, Inc.* | 311,046 | 2,339,066 | ||||||
Ultragenyx Pharmaceutical, Inc.* | 14,590 | 1,164,720 | ||||||
48,023,796 | ||||||||
CASINOS & GAMING—1.7% | ||||||||
DraftKings, Inc., Cl. A* | 73,539 | 3,566,641 | ||||||
Evolution AB | 23,580 | 4,102,902 | ||||||
Flutter Entertainment PLC* | 17,056 | 2,907,481 | ||||||
MGM Resorts International+ | 89,575 | 3,361,750 | ||||||
13,938,774 | ||||||||
CONSTRUCTION & ENGINEERING—0.5% | ||||||||
Ameresco, Inc., Cl. A* | 58,349 | 3,998,657 | ||||||
CONSUMER FINANCE—4.3% | ||||||||
LendingTree, Inc.* | 15,096 | 2,947,041 | ||||||
Upstart Holdings, Inc.*,+ | 256,249 | 30,944,629 | ||||||
33,891,670 | ||||||||
DATA PROCESSING & OUTSOURCED SERVICES—2.1% | ||||||||
Marqeta, Inc., Cl. A* | 122,051 | 3,274,628 | ||||||
PayPal Holdings, Inc.*,+ | 21,373 | 5,888,903 | ||||||
Square, Inc., Cl. A* | 15,868 | 3,923,522 | ||||||
Visa, Inc., Cl. A+ | 16,308 | 4,018,128 | ||||||
17,105,181 | ||||||||
DIVERSIFIED BANKS—1.0% | ||||||||
Wells Fargo & Co.+ | 172,949 | 7,945,277 | ||||||
EDUCATION SERVICES—4.6% | ||||||||
Chegg, Inc.*,+ | 412,828 | 36,588,945 | ||||||
Duolingo, Inc., Cl. A* | 179 | 25,105 | ||||||
36,614,050 | ||||||||
ELECTRICAL COMPONENTS & EQUIPMENT—0.2% | ||||||||
AMETEK, Inc. | 14,124 | 1,963,942 | ||||||
ELECTRONIC EQUIPMENT & INSTRUMENTS—0.4% | ||||||||
908 Devices, Inc.* | 45,693 | 1,427,906 | ||||||
Trimble, Inc.* | 17,839 | 1,525,235 | ||||||
2,953,141 | ||||||||
ENVIRONMENTAL & FACILITIES SERVICES—2.4% | ||||||||
Casella Waste Systems, Inc., Cl. A*,+ | 54,574 | 3,753,600 | ||||||
Montrose Environmental Group, Inc.*,+ | 149,405 | 8,021,554 | ||||||
Waste Connections, Inc.+ | 55,396 | 7,018,119 | ||||||
18,793,273 | ||||||||
FINANCIAL EXCHANGES & DATA—0.7% | ||||||||
Coinbase Global, Inc., Cl. A* | 23,665 | 5,598,666 | ||||||
GENERAL MERCHANDISE STORES—2.2% | ||||||||
Ollie's Bargain Outlet Holdings, Inc.*,+ | 188,632 | 17,561,639 |
- 10 -
THE ALGER FUNDS II | ALGER SPECTRA FUND | |
Schedule of Investments July 31, 2021 (Unaudited) (Continued) |
COMMON STOCKS—98.7% (CONT.) | SHARES | VALUE | ||||||
HEALTHCARE DISTRIBUTORS—1.9% | ||||||||
Apria, Inc.*,+ | 324,662 | $ | 10,236,593 | |||||
PetIQ, Inc., Cl. A* | 147,174 | 5,204,072 | ||||||
15,440,665 | ||||||||
HEALTHCARE EQUIPMENT—7.2% | ||||||||
CryoPort, Inc.* | 67,304 | 4,154,003 | ||||||
Eargo, Inc.* | 75,609 | 2,721,924 | ||||||
Glaukos Corp.*,+ | 67,195 | 3,426,945 | ||||||
Inmode Ltd.* | 70,842 | 8,052,610 | ||||||
Insulet Corp.*,+ | 40,283 | 11,266,752 | ||||||
Intuitive Surgical, Inc.*,+ | 7,468 | 7,404,224 | ||||||
Nevro Corp.*,+ | 129,693 | 20,102,415 | ||||||
57,128,873 | ||||||||
HEALTHCARE FACILITIES—0.4% | ||||||||
The Joint Corp.* | 36,606 | 2,891,508 | ||||||
HEALTHCARE SERVICES—0.4% | ||||||||
Guardant Health, Inc.*,+ | 30,727 | 3,373,825 | ||||||
HEALTHCARE SUPPLIES—0.4% | ||||||||
Align Technology, Inc.* | 4,668 | 3,247,994 | ||||||
HEALTHCARE TECHNOLOGY—1.5% | ||||||||
Inspire Medical Systems, Inc.* | 7,285 | 1,334,321 | ||||||
Tabula Rasa HealthCare, Inc.* | 83,298 | 3,578,482 | ||||||
Veeva Systems, Inc., Cl. A* | 20,666 | 6,875,785 | ||||||
11,788,588 | ||||||||
HOMEFURNISHING RETAIL—0.2% | ||||||||
Bed Bath & Beyond, Inc.* | 63,164 | 1,802,701 | ||||||
HOTELS RESORTS & CRUISE LINES—0.5% | ||||||||
Expedia Group, Inc.*,+ | 22,385 | 3,601,075 | ||||||
HUMAN RESOURCE & EMPLOYMENT SERVICES—1.3% | ||||||||
Legalzoom.com, Inc.* | 110,319 | 4,057,533 | ||||||
Upwork, Inc.*,+ | 115,462 | 5,979,777 | ||||||
10,037,310 | ||||||||
INSURANCE BROKERS—0.1% | ||||||||
Goosehead Insurance, Inc., Cl. A | 6,755 | 811,883 | ||||||
INTERACTIVE HOME ENTERTAINMENT—1.5% | ||||||||
Sea Ltd.#,* | 28,532 | 7,879,397 | ||||||
Take-Two Interactive Software, Inc.* | 23,293 | 4,039,472 | ||||||
11,918,869 | ||||||||
INTERACTIVE MEDIA & SERVICES—2.5% | ||||||||
Alphabet, Inc., Cl. C*,+ | 3,029 | 8,191,688 | ||||||
Genius Sports Ltd.*,+ | 223,476 | 3,825,909 | ||||||
Pinterest, Inc., Cl. A*,+ | 100,028 | 5,891,649 | ||||||
Snap, Inc., Cl. A* | 25,826 | 1,921,971 | ||||||
19,831,217 | ||||||||
INTERNET & DIRECT MARKETING RETAIL—3.7% | ||||||||
Amazon.com, Inc.*,+ | 6,434 | 21,409,714 | ||||||
Chewy, Inc., Cl. A* | 20,400 | 1,707,480 | ||||||
Etsy, Inc.* | 7,399 | 1,357,791 |
- 11 -
THE ALGER FUNDS II | ALGER SPECTRA FUND | |
Schedule of Investments July 31, 2021 (Unaudited) (Continued) |
COMMON STOCKS—98.7% (CONT.) | SHARES | VALUE | ||||||
INTERNET & DIRECT MARKETING RETAIL—3.7% (CONT.) Wayfair, Inc., Cl. A*,+ | 21,550 | $ | 5,201,308 | |||||
29,676,293 | ||||||||
INTERNET SERVICES & INFRASTRUCTURE—1.1% BigCommerce Holdings, Inc., Series 1* | 30,991 | 2,006,977 | ||||||
Shopify, Inc., Cl. A*,+ | 4,471 | 6,706,187 | ||||||
8,713,164 | ||||||||
INVESTMENT BANKING & BROKERAGE—0.5% The Goldman Sachs Group, Inc.+ | 10,479 | 3,928,368 | ||||||
IT CONSULTING & OTHER SERVICES—0.6% EPAM Systems, Inc.*,+ | 6,855 | 3,837,429 | ||||||
Globant SA* | 3,330 | 796,403 | ||||||
4,633,832 | ||||||||
LEISURE FACILITIES—0.2% Planet Fitness, Inc., Cl. A* | 23,387 | 1,759,404 | ||||||
LEISURE PRODUCTS—0.2% Latham Group, Inc.* | 56,932 | 1,553,105 | ||||||
LIFE SCIENCES TOOLS & SERVICES—1.1% 10X Genomics, Inc., Cl. A* | 5,043 | 924,029 | ||||||
Bio-Techne Corp. | 9,299 | 4,484,349 | ||||||
NeoGenomics, Inc.*,+ | 65,438 | 3,016,692 | ||||||
8,425,070 | ||||||||
MANAGED HEALTHCARE—2.1% Progyny, Inc.*,+ | 302,124 | 16,825,286 | ||||||
METAL & GLASS CONTAINERS—0.9% Ball Corp. | 92,960 | 7,518,605 | ||||||
MOVIES & ENTERTAINMENT—0.9% Lions Gate Entertainment Corp., Cl. B* | 93,384 | 1,247,610 | ||||||
Roku, Inc., Cl. A* | 13,948 | 5,974,068 | ||||||
7,221,678 | ||||||||
OIL & GAS EQUIPMENT & SERVICES—1.6% Baker Hughes Co., Cl. A | 66,874 | 1,420,404 | ||||||
Core Laboratories NV+ | 329,309 | 10,985,748 | ||||||
12,406,152 | ||||||||
OIL & GAS EXPLORATION & PRODUCTION—0.5% Diamondback Energy, Inc. | 41,199 | 3,177,679 | ||||||
Magnolia Oil & Gas Corp., Cl. A* | 49,535 | 693,490 | ||||||
3,871,169 | ||||||||
PACKAGED FOODS & MEATS—0.5% Mondelez International, Inc., Cl. A | 61,715 | 3,904,091 | ||||||
PHARMACEUTICALS—2.0% Aerie Pharmaceuticals, Inc.* | 136,222 | 2,149,583 | ||||||
Catalent, Inc.* | 66,788 | 8,001,870 | ||||||
Green Thumb Industries, Inc.* | 134,235 | 3,988,212 | ||||||
Royalty Pharma PLC, Cl. A | 43,026 | 1,643,593 | ||||||
15,783,258 | ||||||||
REAL ESTATE SERVICES—2.5% FirstService Corp.+ | 106,236 | 19,755,647 |
- 12 -
THE ALGER FUNDS II | ALGER SPECTRA FUND | |
Schedule of Investments July 31, 2021 (Unaudited) (Continued) |
COMMON STOCKS—98.7% (CONT.) | SHARES | VALUE | ||||||
REGIONAL BANKS—2.5% Signature Bank+ | 86,558 | $ | 19,646,069 | |||||
RESEARCH & CONSULTING SERVICES—0.5% CoStar Group, Inc.*,+ | 42,160 | 3,745,916 | ||||||
RESTAURANTS—1.3% Shake Shack, Inc., Cl. A*,+ | 56,051 | 5,635,367 | ||||||
The Cheesecake Factory, Inc.* | 68,672 | 3,108,095 | ||||||
Wingstop, Inc. | 10,512 | 1,800,811 | ||||||
10,544,273 | ||||||||
SEMICONDUCTOR EQUIPMENT—2.7% Applied Materials, Inc.+ | 48,119 | 6,733,292 | ||||||
Lam Research Corp. | 10,295 | 6,562,136 | ||||||
SolarEdge Technologies, Inc.* | 30,582 | 7,935,417 | ||||||
21,230,845 | ||||||||
SEMICONDUCTORS—3.0% Advanced Micro Devices, Inc.* | 80,370 | 8,534,490 | ||||||
Impinj, Inc.* | 82,640 | 3,801,440 | ||||||
QUALCOMM, Inc. | 52,899 | 7,924,270 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd.# | 31,373 | 3,659,347 | ||||||
23,919,547 | ||||||||
SYSTEMS SOFTWARE—4.2% Crowdstrike Holdings, Inc., Cl. A* | 17,364 | 4,403,684 | ||||||
Microsoft Corp.+ | 98,085 | 27,945,397 | ||||||
Rapid7, Inc.* | 7,182 | 816,953 | ||||||
33,166,034 | ||||||||
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—0.4% Apple, Inc.+ | 21,869 | 3,189,812 | ||||||
THRIFTS & MORTGAGE FINANCE—0.1% Axos Financial, Inc.*,+ | 20,810 | 995,759 | ||||||
TRADING COMPANIES & DISTRIBUTORS—0.6% SiteOne Landscape Supply, Inc.* | 27,654 | 4,833,366 | ||||||
TOTAL COMMON STOCKS (Cost $673,944,730) | 785,139,017 | |||||||
PREFERRED STOCKS—0.0% | SHARES | VALUE | ||||||
BIOTECHNOLOGY—0.0% Prosetta Biosciences, Inc., Series D*,@,(a),(b) | 41,418 | 6,213 | ||||||
(Cost $186,381) | 6,213 | |||||||
RIGHTS—0.0% | SHARES | VALUE | ||||||
BIOTECHNOLOGY—0.0% Tolero CDR*,@,(a),(c) | 126,108 | 97,103 | ||||||
(Cost $67,638) | 97,103 | |||||||
REAL ESTATE INVESTMENT TRUST—1.3% | SHARES | VALUE | ||||||
INDUSTRIAL—0.5% Prologis, Inc. | 30,677 | 3,927,883 | ||||||
RESIDENTIAL—0.5% AvalonBay Communities, Inc. | 8,649 | 1,970,502 | ||||||
Essex Property Trust, Inc. | 5,910 | 1,939,071 | ||||||
3,909,573 |
- 13 -
THE ALGER FUNDS II | ALGER SPECTRA FUND | |
Schedule of Investments July 31, 2021 (Unaudited) (Continued) |
REAL ESTATE INVESTMENT TRUST—1.3% (CONT.) | SHARES | VALUE | ||||||
RETAIL—0.3% Simon Property Group, Inc. | 21,845 | $ | 2,763,829 | |||||
TOTAL REAL ESTATE INVESTMENT TRUST (Cost $9,683,603) | 10,601,285 | |||||||
SPECIAL PURPOSE VEHICLE—0.3% | SHARES | VALUE | ||||||
DATA PROCESSING & OUTSOURCED SERVICES—0.3% Crosslink Ventures Capital LLC, Cl. A*,@,(a),(b) | 37 | 1,450,548 | ||||||
Crosslink Ventures Capital LLC, Cl. B*,@,(a),(b) | 22 | 862,488 | ||||||
2,313,036 | ||||||||
TOTAL SPECIAL PURPOSE VEHICLE (Cost $1,475,000) | 2,313,036 |
PURCHASED OPTIONS—0.0% SECURITY NAME/ EXPIRATION DATE/ STRIKE PRICE | NOTIONAL AMOUNTS | COUNTERPARTY | NUMBER OF CONTRACTS | VALUE | ||||||||
PUT OPTIONS—0.0% | ||||||||||||
Lemonade, Inc., 12/17/21, 100.00* | $ | 43,530 | BNP Paribas | 5 | $ | 11,775 | ||||||
(Cost $29,161) | 11,775 |
TOTAL PURCHASED OPTIONS (Cost $29,161) | 11,775 | |||||||
Total Investments (Cost $685,386,513) | 100.3 | % | $ | 798,168,429 | ||||
Affiliated Securities (Cost $1,661,381) | 2,319,249 | |||||||
Unaffiliated Securities (Cost $683,725,132) | 795,849,180 | |||||||
Securities Sold Short (Proceeds $317,800,238) | (39.7 | )% | (316,242,845 | ) | ||||
Swaps | 0.0 | % | 1,960 | |||||
Other Assets in Excess of Liabilities | 39.4 | % | 313,942,886 | |||||
NET ASSETS | 100.0 | % | $ | 795,870,430 |
- 14 -
+ All or a portion of this security is held as collateral for securities sold short.
# 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.
Security | Acquisition Date(s) | Acquisition Cost | % of net assets (Acquisition Date) | Market Value | % of net assets as of 1/31/2021 | |||||||||||||
Crosslink Ventures Capital LLC, Cl. A | 10/2/20 | 925,000 | 0.24 | % | $ | 1,450,548 | 0.18 | % | ||||||||||
Crosslink Ventures Capital LLC, Cl. B | 12/16/20 | 550,000 | 0.11 | % | 862488 | 0.11 | % | |||||||||||
Prosetta Biosciences, Inc., Series D | 2/6/15 | 186,381 | 0.25 | % | 6,213 | 0.00 | % | |||||||||||
Tolero CDR | 2/6/17 | 67,638 | 0.09 | % | 97,103 | 0.01 | % | |||||||||||
Total | $ | 2,416,352 | 0.30 | % |
Swaps outstanding as of July 31, 2021:
Centrally cleared swaps - Contracts for difference
Contract Amount | Counterparty | Reference Company | Market Value | Unrealized Appreciation | Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) | ||||||||||||||
3,914,820 | Goldman Sachs | 3M Co. | $ | 8,121 | $ | 8,121 | $ | – | $ | 8,121 | ||||||||||
1,873,266 | Church & Dwight | (93,448 | ) | – | (63,955 | ) | (63,955 | ) | ||||||||||||
Goldman Sachs | Co., Inc | |||||||||||||||||||
837,436 | Goldman Sachs | The Kroger Co. | (119,017 | ) | (119,017 | ) | (119,017 | ) | ||||||||||||
1,831,088 | Goldman Sachs | Omnicom Group, Inc. | 206,304 | 206,304 | 206,304 | |||||||||||||||
Total | $ | 1,960 | $ | 214,495 | $ | (182,972) | $ | 31,453 |
See Notes to Financial Statements.
- 15 -
THE ALGER FUNDS II | ALGER SPECTRA FUND | |
Schedule of Investments July 31, 2021 (Unaudited) (Continued) |
COMMON STOCKS—(35.7)% | SHARES | VALUE | ||||||
AEROSPACE & DEFENSE—(0.1)% | ||||||||
Virgin Galactic Holdings, Inc. | (17,542 | ) | $ | (526,085 | ) | |||
AIRLINES—(0.1)% | ||||||||
Frontier Group Holdings, Inc. | (38,109 | ) | (561,727 | ) | ||||
Sun Country Airlines Holdings, Inc. | (17,402 | ) | (565,391 | ) | ||||
(1,127,118 | ) | |||||||
APPLICATION SOFTWARE—(1.3)% | ||||||||
C3.ai, Inc., Cl. A | (6,977 | ) | (351,292 | ) | ||||
Elastic NV | (15,666 | ) | (2,319,508 | ) | ||||
Latch, Inc. | (233,838 | ) | (3,117,061 | ) | ||||
Olo, Inc., Cl. A | (16,976 | ) | (595,348 | ) | ||||
RingCentral, Inc., Cl. A | (6,610 | ) | (1,766,655 | ) | ||||
ShotSpotter, Inc. | (40,795 | ) | (1,864,332 | ) | ||||
Tuya, Inc.# | (29,572 | ) | (587,891 | ) | ||||
(10,602,087 | ) | |||||||
ASSET MANAGEMENT & CUSTODY BANKS—(0.1)% | ||||||||
Main Street Capital Corp. | (11,885 | ) | (488,711 | ) | ||||
BIOTECHNOLOGY—(0.4)% | ||||||||
Amgen, Inc. | (4,765 | ) | (1,150,938 | ) | ||||
Flexion Therapeutics, Inc. | (302,122 | ) | (1,791,583 | ) | ||||
(2,942,521 | ) | |||||||
BREWERS—(0.2)% | ||||||||
The Boston Beer Co., Inc., Cl. A | (2,520 | ) | (1,789,200 | ) | ||||
BUILDING PRODUCTS—0.0% | ||||||||
Lennox International, Inc. | (1,057 | ) | (348,208 | ) | ||||
CABLE & SATELLITE—0.0% | ||||||||
Sirius XM Holdings, Inc. | (58,865 | ) | (380,857 | ) | ||||
COMMODITY CHEMICALS—(0.8)% | ||||||||
PureCycle Technologies, Inc. | (439,970 | ) | (6,515,956 | ) | ||||
COMPUTER & ELECTRONICS RETAIL—0.0% | ||||||||
Smart Share Global Ltd.# | (16,665 | ) | (70,826 | ) | ||||
CONSUMER ELECTRONICS—(0.1)% | ||||||||
Vizio Holding Corp., Cl. A | (24,697 | ) | (544,075 | ) | ||||
DATA PROCESSING & OUTSOURCED SERVICES—(0.2)% | ||||||||
Afterpay Ltd. | (17,326 | ) | (1,231,573 | ) | ||||
DEPARTMENT STORES—(0.3)% | ||||||||
Nordstrom, Inc. | (61,015 | ) | (2,019,596 | ) | ||||
DISTILLERS & VINTNERS—(0.1)% | ||||||||
The Duckhorn Portfolio, Inc. | (25,087 | ) | (551,161 | ) | ||||
DIVERSIFIED SUPPORT SERVICES—(1.0)% | ||||||||
ACV Auctions, Inc., Cl. A | (25,379 | ) | (587,778 | ) | ||||
Healthcare Services Group, Inc. | (120,865 | ) | (3,154,576 | ) | ||||
KAR Auction Services, Inc. | (237,119 | ) | (3,907,721 | ) | ||||
(7,650,075 | ) | |||||||
EDUCATION SERVICES—(0.2)% | ||||||||
2U, Inc. | (26,226 | ) | (1,138,208 | ) |
- 16 -
THE ALGER FUNDS II | ALGER SPECTRA FUND | |
Schedule of Investments July 31, 2021 (Unaudited) (Continued) |
COMMON STOCKS—(35.7)% (CONT.) | SHARES | VALUE | ||||||
EDUCATION SERVICES—(0.2)% (CONT.) | ||||||||
Coursera, Inc. | (16,213 | ) | $ | (577,021 | ) | |||
(1,715,229 | ) | |||||||
FOOD RETAIL—(0.1)% | ||||||||
Grocery Outlet Holding Corp. | (32,468 | ) | (1,075,340 | ) | ||||
HEALTHCARE EQUIPMENT—(0.5)% | ||||||||
iRhythm Technologies, Inc. | (56,159 | ) | (2,870,848 | ) | ||||
NuVasive, Inc. | (17,321 | ) | (1,107,678 | ) | ||||
(3,978,526 | ) | |||||||
HEALTHCARE SERVICES—(0.3)% | ||||||||
Hims & Hers Health, Inc. | (281,002 | ) | (2,222,726 | ) | ||||
HEALTHCARE TECHNOLOGY—0.0% | ||||||||
Castlight Health, Inc., Cl. B | (7,950 | ) | (18,524 | ) | ||||
HOME FURNISHINGS—(0.1)% | ||||||||
Leggett & Platt, Inc. | (15,884 | ) | (762,909 | ) | ||||
HOUSEHOLD APPLIANCES—(0.3)% | ||||||||
Cricut, Inc., Cl. A | (17,330 | ) | (591,473 | ) | ||||
iRobot Corp. | (22,146 | ) | (1,937,775 | ) | ||||
(2,529,248 | ) | |||||||
INDUSTRIAL MACHINERY—(0.1)% | ||||||||
Proto Labs, Inc. | (12,693 | ) | (992,466 | ) | ||||
INTERACTIVE MEDIA & SERVICES—(0.5)% | ||||||||
Twitter, Inc. | (54,713 | ) | (3,816,232 | ) | ||||
INTERNET & DIRECT MARKETING RETAIL—(1.9)% | ||||||||
1stdibs.com, Inc. | (27,827 | ) | (452,189 | ) | ||||
JD.com, Inc.# | (27,182 | ) | (1,926,660 | ) | ||||
Porch Group, Inc. | (163,116 | ) | (3,022,539 | ) | ||||
Poshmark, Inc., Cl. A | (156,230 | ) | (6,130,465 | ) | ||||
The Original BARK Co. | (285,000 | ) | (2,294,250 | ) | ||||
ThredUp, Inc., Cl. A | (55,679 | ) | (1,328,501 | ) | ||||
(15,154,604 | ) | |||||||
INTERNET SERVICES & INFRASTRUCTURE—(1.9)% | ||||||||
Akamai Technologies, Inc. | (6,356 | ) | (762,212 | ) | ||||
Fastly, Inc., Cl. A | (34,472 | ) | (1,657,069 | ) | ||||
GTT Communications, Inc. | (87,552 | ) | (49,029 | ) | ||||
Rackspace Technology, Inc. | (107,440 | ) | (1,907,060 | ) | ||||
Snowflake, Inc., Cl. A | (35,979 | ) | (9,560,340 | ) | ||||
Wix.com Ltd. | (3,038 | ) | (907,268 | ) | ||||
(14,842,978 | ) | |||||||
IT CONSULTING & OTHER SERVICES—(0.5)% | ||||||||
Cognizant Technology Solutions Corp., Cl. A | (50,544 | ) | (3,716,500 | ) | ||||
MARKET INDICES—(18.8)% | ||||||||
Invesco QQQ Trust Series 1 | (32,219 | ) | (11,746,081 | ) | ||||
iShares Russell 1000 Growth ETF | (69,561 | ) | (19,522,990 | ) | ||||
iShares Russell 2000 Growth ETF | (271,812 | ) | (81,557,191 | ) |
- 17 -
THE ALGER FUNDS II | ALGER SPECTRA FUND | |
Schedule of Investments July 31, 2021 (Unaudited) (Continued) |
COMMON STOCKS—(35.7)% (CONT.) | SHARES | VALUE | ||||||
MARKET INDICES—(18.8)% (CONT.) iShares Russell Mid-Capital Growth ETF | (322,229 | ) | $ | (36,827,552 | ) | |||
(149,653,814 | ) | |||||||
MOVIES & ENTERTAINMENT—(0.7)% AMC Entertainment Holdings, Inc., Cl. A | (53,903 | ) | (1,995,489 | ) | ||||
Spotify Technology SA | (14,449 | ) | (3,304,053 | ) | ||||
(5,299,542 | ) | |||||||
OIL & GAS DRILLING—(0.1)% Transocean Ltd. | (217,158 | ) | (783,940 | ) | ||||
OIL & GAS EXPLORATION & PRODUCTION—(0.1)% Vine Energy, Inc., Cl. A | (41,181 | ) | (576,946 | ) | ||||
OTHER DIVERSIFIED FINANCIAL SERVICES—(0.6)% iShares 20+ Year Treasury Bond ETF | (34,352 | ) | (5,136,311 | ) | ||||
PACKAGED FOODS & MEATS—(0.2)% General Mills, Inc. | (30,432 | ) | (1,791,228 | ) | ||||
PERSONAL PRODUCTS—(0.2)% The Honest Co., Inc. | (109,915 | ) | (1,579,479 | ) | ||||
PROPERTY & CASUALTY INSURANCE—(1.5)% Kinsale Capital Group, Inc. | (9,425 | ) | (1,683,729 | ) | ||||
Lemonade, Inc. | (84,458 | ) | (7,352,913 | ) | ||||
Palomar Holdings, Inc. | (39,702 | ) | (3,232,934 | ) | ||||
(12,269,576 | ) | |||||||
REAL ESTATE SERVICES—(0.6)% Opendoor Technologies, Inc. | (341,899 | ) | (5,066,943 | ) | ||||
REGIONAL BANKS—(0.2)% Great Western Bancorp, Inc. | (47,240 | ) | (1,454,992 | ) | ||||
SECURITY & ALARM SERVICES—(0.2)% The Brink's Co. | (25,875 | ) | (1,991,340 | ) | ||||
SPECIALTY CHEMICALS—(0.1)% Diversey Holdings Ltd. | (35,283 | ) | (588,520 | ) | ||||
SYSTEMS SOFTWARE—(0.7)% Check Point Software Technologies Ltd. | (15,684 | ) | (1,993,436 | ) | ||||
Monday.com Ltd. | (8,600 | ) | (1,903,094 | ) | ||||
UiPath, Inc., Cl. A | (22,021 | ) | (1,377,634 | ) | ||||
(5,274,164 | ) | |||||||
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—(0.4)% Diebold Nixdorf, Inc. | (84,943 | ) | (884,257 | ) | ||||
Logitech International SA | (24,502 | ) | (2,671,943 | ) | ||||
(3,556,200 | ) | |||||||
TRUCKING—(0.2)% Avis Budget Group, Inc. | (24,072 | ) | (1,992,439 | ) | ||||
TOTAL COMMON STOCKS | ||||||||
(Proceeds $287,484,081) | $ | (284,628,765 | ) |
- 18 -
THE ALGER FUNDS II | ALGER SPECTRA FUND | |
Schedule of Investments July 31, 2021 (Unaudited) (Continued) |
REAL ESTATE INVESTMENT TRUST—(4.0)% | SHARES | VALUE | |||||||
DIVERSIFIED—(0.6)% Empire State Realty Trust, Inc., Cl. A | (424,345 | ) | $ | (4,850,263 | ) | ||||
HEALTHCARE—(1.7)% Omega Healthcare Investors, Inc. | (374,190 | ) | (13,575,613 | ) | |||||
OFFICE—(1.3)% Boston Properties, Inc. | (8,117 | ) | (952,773 | ) | |||||
Hudson Pacific Properties, Inc. | (41,165 | ) | (1,122,158 | ) | |||||
Paramount Group, Inc. | (349,277 | ) | (3,408,944 | ) | |||||
SL Green Realty Corp. | (26,970 | ) | (2,008,186 | ) | |||||
Vornado Realty Trust | (66,193 | ) | (2,879,395 | ) | |||||
(10,371,456 | ) | ||||||||
RETAIL—(0.4)% CBL & Associates Properties, Inc. | (13,748 | ) | (1,722 | ) | |||||
Pennsylvania Real Estate Investment Trust | (6,036 | ) | (12,253 | ) | |||||
Seritage Growth Properties, Cl. A | (176,463 | ) | (2,800,468 | ) | |||||
Washington Prime Group, Inc. | (1,295 | ) | (2,305 | ) | |||||
(2,816,748 | ) | ||||||||
TOTAL REAL ESTATE INVESTMENT TRUST | |||||||||
(Proceeds $30,316,157) | $ | (31,614,080 | ) | ||||||
Total Securities Sold Short | |||||||||
(Proceeds $317,800,238) | $ | (316,242,845 | ) |
# American Depositary Receipts.
See Notes to Financial Statements.
- 19 -
THE ALGER FUNDS II | ALGER EMERGING MARKETS FUND |
Schedule of Investments July 31, 2021 (Unaudited) |
COMMON STOCKS—98.4% | SHARES | VALUE | ||||||
ARGENTINA—1.8% | ||||||||
INTERNET & DIRECT MARKETING RETAIL—1.8% | ||||||||
MercadoLibre, Inc.* | 460 | $ | 721,602 | |||||
(Cost $740,639) | ||||||||
BRAZIL—10.3% | ||||||||
ASSET MANAGEMENT & CUSTODY BANKS—1.6% | ||||||||
Vinci Partners Investments Ltd., Cl. A* | 48,170 | 624,765 | ||||||
DATA PROCESSING & OUTSOURCED SERVICES—1.7% | ||||||||
StoneCo Ltd., Cl. A* | 11,400 | 670,776 | ||||||
EDUCATION SERVICES—1.8% | ||||||||
Afya Ltd., Cl. A* | 29,900 | 687,700 | ||||||
HEALTHCARE SERVICES—2.0% | ||||||||
Diagnosticos da America SA | 72,500 | 771,032 | ||||||
HEAVY ELECTRICAL EQUIPMENT—1.4% | ||||||||
Aeris Industria E Comercio de Equipamentos Para Geracao de Energia SA* | 331,000 | 555,982 | ||||||
RESEARCH & CONSULTING SERVICES—1.8% | ||||||||
Boa Vista Servicos SA | 324,000 | 720,864 | ||||||
TOTAL BRAZIL | ||||||||
(Cost $4,249,853) | 4,031,119 | |||||||
CANADA—1.6% | ||||||||
GOLD—1.6% | ||||||||
Endeavour Mining PLC | 25,500 | 607,201 | ||||||
(Cost $640,504) | ||||||||
CHINA—23.8% | ||||||||
APPAREL ACCESSORIES & LUXURY GOODS—0.7% | ||||||||
Li Ning Co., Ltd. | 27,000 | 285,161 | ||||||
APPLICATION SOFTWARE—1.7% | ||||||||
Glodon Co., Ltd., Cl. A | 68,000 | 664,723 | ||||||
AUTOMOBILE MANUFACTURERS—6.2% | ||||||||
BYD Co., Ltd., Cl. H | 37,000 | 1,143,635 | ||||||
Geely Automobile Holdings Ltd. | 382,000 | 1,281,401 | ||||||
2,425,036 | ||||||||
FOOTWEAR—1.3% | ||||||||
ANTA Sports Products Ltd. | 24,000 | 522,523 | ||||||
INTERACTIVE MEDIA & SERVICES—2.9% | ||||||||
Tencent Holdings Ltd. | 18,507 | 1,116,145 | ||||||
INTERNET & DIRECT MARKETING RETAIL—4.0% | ||||||||
JD.com, Inc.#,* | 16,000 | 1,134,080 | ||||||
Trip.com Group Ltd.#,* | 17,400 | 451,182 | ||||||
1,585,262 | ||||||||
PACKAGED FOODS & MEATS—1.1% | ||||||||
China Feihe Ltd. | 218,000 | 419,115 | ||||||
PERSONAL PRODUCTS—0.5% | ||||||||
Yatsen Holding Ltd.#,* | 30,502 | 205,584 |
- 20 -
THE ALGER FUNDS II | ALGER EMERGING MARKETS FUND |
Schedule of Investments July 31, 2021 (Unaudited) (Continued) |
COMMON STOCKS—98.4% (CONT.) | SHARES | VALUE | ||||||
CHINA—23.8% (CONT.) | ||||||||
REAL ESTATE OPERATING COMPANIES—2.2% | ||||||||
KWG Living Group Holdings Ltd. | 910,000 | $ | 870,429 | |||||
SEMICONDUCTORS—3.2% | ||||||||
LONGi Green Energy Technology Co., Ltd., Cl. A | 93,865 | 1,252,967 | ||||||
TOTAL CHINA | ||||||||
(Cost $9,215,788) | 9,346,945 | |||||||
GREECE—1.5% | ||||||||
SPECIALTY STORES—1.5% | ||||||||
JUMBO SA | 38,000 | 603,678 | ||||||
(Cost $730,268) | ||||||||
HONG KONG—3.3% | ||||||||
ADVERTISING—1.6% | ||||||||
iClick Interactive Asia Group Ltd.#,* | 109,800 | 621,468 | ||||||
FINANCIAL EXCHANGES & DATA—1.7% | ||||||||
Hong Kong Exchanges & Clearing Ltd. | 10,476 | 669,531 | ||||||
TOTAL HONG KONG | ||||||||
(Cost $1,556,433) | 1,290,999 | |||||||
HUNGARY—2.6% | ||||||||
AIRLINES—2.6% | ||||||||
Wizz Air Holdings PLC* | 14,686 | 1,009,329 | ||||||
(Cost $889,698) | ||||||||
INDIA—14.0% | ||||||||
APPAREL ACCESSORIES & LUXURY GOODS—1.2% | ||||||||
Titan Co., Ltd. | 20,000 | 462,085 | ||||||
APPLICATION SOFTWARE—1.8% | ||||||||
Route Mobile Ltd. | 26,000 | 723,054 | ||||||
CONSUMER FINANCE—4.1% | ||||||||
Manappuram Finance Ltd. | 447,000 | 1,249,366 | ||||||
Paisalo Digital Ltd. | 41,000 | 363,054 | ||||||
1,612,420 | ||||||||
ELECTRICAL COMPONENTS & EQUIPMENT—1.1% | ||||||||
Polycab India Ltd. | 17,000 | 422,721 | ||||||
HEALTHCARE SERVICES—1.7% | ||||||||
Metropolis Healthcare Ltd. | 17,000 | 650,886 | ||||||
HOUSEHOLD APPLIANCES—1.9% | ||||||||
Amber Enterprises India Ltd.* | 19,000 | 763,789 | ||||||
RESTAURANTS—1.3% | ||||||||
Barbeque Nation Hospitality Ltd.* | 43,000 | 508,873 | ||||||
THRIFTS & MORTGAGE FINANCE—0.9% | ||||||||
Indiabulls Housing Finance Ltd. | 100,000 | 371,158 | ||||||
TOTAL INDIA | ||||||||
(Cost $4,399,482) | 5,514,986 |
- 21 -
THE ALGER FUNDS II | ALGER EMERGING MARKETS FUND |
Schedule of Investments July 31, 2021 (Unaudited) (Continued) |
COMMON STOCKS—98.4% (CONT.) | SHARES | VALUE | ||||||
INDONESIA—1.0% | ||||||||
REGIONAL BANKS—1.0% | ||||||||
Bank BTPN Syariah Tbk PT | 2,408,570 | $ | 394,829 | |||||
(Cost $510,743) | ||||||||
RUSSIA—1.7% | ||||||||
APPAREL RETAIL—1.7% | ||||||||
Detsky Mir PJSC | 341,940 | 655,914 | ||||||
(Cost $705,092) | ||||||||
SINGAPORE—2.6% | ||||||||
INTERACTIVE HOME ENTERTAINMENT—2.6% | ||||||||
Sea Ltd.#,* | 3,680 | 1,016,269 | ||||||
(Cost $1,023,583) | ||||||||
SOUTH AFRICA—1.0% | ||||||||
APPAREL RETAIL—1.0% | ||||||||
Mr Price Group Ltd. | 27,000 | 401,482 | ||||||
(Cost $326,161) | ||||||||
SOUTH KOREA—16.4% | ||||||||
HEALTHCARE EQUIPMENT—2.4% | ||||||||
Ray Co., Ltd.* | 34,200 | 926,948 | ||||||
INTERACTIVE MEDIA & SERVICES—2.6% | ||||||||
Kakao Corp. | 8,100 | 1,034,682 | ||||||
SEMICONDUCTORS—2.6% | ||||||||
LEENO Industrial, Inc. | 6,639 | 1,031,133 | ||||||
SPECIALTY CHEMICALS—3.3% | ||||||||
Chunbo Co., Ltd. | 6,623 | 1,299,503 | ||||||
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—5.5% | ||||||||
Samsung Electronics Co., Ltd. | 31,713 | 2,162,471 | ||||||
TOTAL SOUTH KOREA | ||||||||
(Cost $4,382,304) | 6,454,737 | |||||||
TAIWAN—12.8% | ||||||||
ELECTRONIC EQUIPMENT & INSTRUMENTS—2.3% | ||||||||
Chroma ATE, Inc. | 130,000 | 916,649 | ||||||
INTERNET & DIRECT MARKETING RETAIL—3.0% | ||||||||
momo.com, Inc. | 20,800 | 1,162,543 | ||||||
SEMICONDUCTORS—7.5% | ||||||||
Realtek Semiconductor Corp. | 62,000 | 1,310,321 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 78,000 | 1,631,737 | ||||||
2,942,058 | ||||||||
TOTAL TAIWAN | ||||||||
(Cost $3,397,148) | 5,021,250 | |||||||
UNITED STATES—2.0% | ||||||||
IT CONSULTING & OTHER SERVICES—2.0% | ||||||||
EPAM Systems, Inc.* | 1,400 | 783,720 | ||||||
(Cost $407,461) |
- 22 -
THE ALGER FUNDS II | ALGER EMERGING MARKETS FUND |
Schedule of Investments July 31, 2021 (Unaudited) (Continued) |
COMMON STOCKS—98.4% (CONT.) | SHARES | VALUE | ||||||
VIETNAM—2.0% | ||||||||
REAL ESTATE DEVELOPMENT—2.0% Vinhomes JSC* | 167,000 | $ | 788,320 | |||||
(Cost $735,655) | ||||||||
TOTAL COMMON STOCKS (Cost $33,910,812) | 38,642,380 | |||||||
Total Investments (Cost $33,910,812) | 98.4 | % | $ | 38,642,380 | ||||
Unaffiliated Securities (Cost $33,910,812) | 38,642,380 | |||||||
Other Assets in Excess of Liabilities | 1.6 | % | 644,137 | |||||
NET ASSETS | 100.0 | % | $ | 39,286,517 |
# American Depositary Receipts.
* Non-income producing security.
See Notes to Financial Statements.
- 23 -
THE ALGER FUNDS II | ALGER RESPONSIBLE INVESTING FUND |
Schedule of Investments July 31, 2021 (Unaudited) |
COMMON STOCKS—95.8% | SHARES | VALUE | ||||||
APPAREL ACCESSORIES & LUXURY GOODS—1.5% | ||||||||
Levi Strauss & Co., Cl. A | 18,358 | $ | 505,212 | |||||
Lululemon Athletica, Inc.* | 2,388 | 955,606 | ||||||
1,460,818 | ||||||||
APPLICATION SOFTWARE—10.7% | ||||||||
Adobe, Inc.* | 6,785 | 4,217,760 | ||||||
Autodesk, Inc.* | 4,433 | 1,423,569 | ||||||
Intuit, Inc. | 1,417 | 750,968 | ||||||
Paycom Software, Inc.* | 947 | 378,800 | ||||||
salesforce.com, Inc.* | 12,073 | 2,920,821 | ||||||
Workday, Inc., Cl. A* | 1,906 | 446,766 | ||||||
10,138,684 | ||||||||
AUTO PARTS & EQUIPMENT—1.0% | ||||||||
Aptiv PLC* | 5,666 | 945,372 | ||||||
AUTOMOBILE MANUFACTURERS—0.7% | ||||||||
Tesla, Inc.* | 967 | 664,522 | ||||||
BIOTECHNOLOGY—0.6% | ||||||||
Vertex Pharmaceuticals, Inc.* | 2,680 | 540,234 | ||||||
BUILDING PRODUCTS—0.5% | ||||||||
Allegion PLC | 3,668 | 501,049 | ||||||
COMMUNICATIONS EQUIPMENT—0.5% | ||||||||
Cisco Systems, Inc. | 9,310 | 515,495 | ||||||
DATA PROCESSING & OUTSOURCED SERVICES—7.5% | ||||||||
PayPal Holdings, Inc.* | 10,184 | 2,805,998 | ||||||
Visa, Inc., Cl. A | 17,582 | 4,332,029 | ||||||
7,138,027 | ||||||||
DISTRIBUTORS—0.6% | ||||||||
Pool Corp. | 1,157 | 552,838 | ||||||
DIVERSIFIED BANKS—0.4% | ||||||||
JPMorgan Chase & Co. | 2,658 | 403,431 | ||||||
ELECTRIC UTILITIES—0.5% | ||||||||
NextEra Energy, Inc. | 5,908 | 460,233 | ||||||
ELECTRICAL COMPONENTS & EQUIPMENT—0.5% | ||||||||
Rockwell Automation, Inc. | 1,599 | 491,565 | ||||||
ELECTRONIC EQUIPMENT & INSTRUMENTS—1.4% | ||||||||
Cognex Corp. | 5,696 | 514,975 | ||||||
Trimble, Inc.* | 9,100 | 778,050 | ||||||
1,293,025 | ||||||||
ELECTRONIC MANUFACTURING SERVICES—1.0% | ||||||||
Flex Ltd.* | 51,570 | 926,713 | ||||||
ENVIRONMENTAL & FACILITIES SERVICES—0.5% | ||||||||
Tetra Tech, Inc. | 3,729 | 497,896 | ||||||
FINANCIAL EXCHANGES & DATA—2.1% | ||||||||
CME Group, Inc., Cl. A | 2,074 | 439,957 | ||||||
S&P Global, Inc. | 3,601 | 1,543,821 | ||||||
1,983,778 | ||||||||
FOOD DISTRIBUTORS—0.6% | ||||||||
Sysco Corp. | 7,189 | 533,424 |
- 24 -
THE ALGER FUNDS II | ALGER RESPONSIBLE INVESTING FUND |
Schedule of Investments July 31, 2021 (Unaudited) (Continued) |
COMMON STOCKS—95.8% (CONT.) | SHARES | VALUE | ||||||
FOOTWEAR—1.4% NIKE, Inc., Cl. B | 8,142 | $ | 1,363,866 | |||||
HEALTHCARE EQUIPMENT—2.0% Danaher Corp. | 3,428 | 1,019,796 | ||||||
Dexcom, Inc.* | 675 | 347,969 | ||||||
Edwards Lifesciences Corp.* | 4,755 | 533,844 | ||||||
1,901,609 | ||||||||
HEALTHCARE SERVICES—1.4% Cigna Corp. | 4,158 | 954,220 | ||||||
Guardant Health, Inc.* | 3,065 | 336,537 | ||||||
1,290,757 | ||||||||
HEALTHCARE SUPPLIES—0.8% Align Technology, Inc.* | 1,128 | 784,862 | ||||||
HOME IMPROVEMENT RETAIL—2.4% The Home Depot, Inc. | 6,953 | 2,281,905 | ||||||
HOUSEHOLD PRODUCTS—1.1% The Procter & Gamble Co. | 7,270 | 1,034,012 | ||||||
INDUSTRIAL CONGLOMERATES—1.0% Honeywell International, Inc. | 4,177 | 976,541 | ||||||
INDUSTRIAL GASES—1.1% Air Products & Chemicals, Inc. | 3,624 | 1,054,693 | ||||||
INDUSTRIAL MACHINERY—0.8% Xylem, Inc. | 5,737 | 722,002 | ||||||
INTERACTIVE HOME ENTERTAINMENT—0.6% Electronic Arts, Inc. | 3,981 | 573,105 | ||||||
INTERACTIVE MEDIA & SERVICES—9.0% Alphabet, Inc., Cl. A* | 1,102 | 2,969,372 | ||||||
Alphabet, Inc., Cl. C* | 927 | 2,506,997 | ||||||
Facebook, Inc., Cl. A* | 8,550 | 3,046,365 | ||||||
8,522,734 | ||||||||
INTERNET & DIRECT MARKETING RETAIL—6.8% Amazon.com, Inc.* | 1,797 | 5,979,679 | ||||||
Etsy, Inc.* | 2,715 | 498,230 | ||||||
6,477,909 | ||||||||
INTERNET SERVICES & INFRASTRUCTURE—0.2% Shopify, Inc., Cl. A* | 154 | 230,989 | ||||||
INVESTMENT BANKING & BROKERAGE—1.6% Morgan Stanley | 15,491 | 1,486,826 | ||||||
IT CONSULTING & OTHER SERVICES—0.9% Accenture PLC, Cl. A | 2,605 | 827,556 | ||||||
LEISURE FACILITIES—0.5% Vail Resorts, Inc.* | 1,567 | 478,248 | ||||||
LIFE SCIENCES TOOLS & SERVICES—0.7% Agilent Technologies, Inc. | 4,610 | 706,390 | ||||||
MANAGED HEALTHCARE—0.9% Humana, Inc. | 1,990 | 847,461 | ||||||
METAL & GLASS CONTAINERS—0.8% Ball Corp. | 9,682 | 783,080 |
- 25 -
THE ALGER FUNDS II | ALGER RESPONSIBLE INVESTING FUND |
Schedule of Investments July 31, 2021 (Unaudited) (Continued) |
COMMON STOCKS—95.8% (CONT.) | SHARES | VALUE | ||||||
MOVIES & ENTERTAINMENT—0.9% Live Nation Entertainment, Inc.* | 4,766 | $ | 375,990 | |||||
The Walt Disney Co.* | 2,512 | 442,162 | ||||||
818,152 | ||||||||
PHARMACEUTICALS—2.8% Bristol-Myers Squibb Co. | 11,377 | 772,157 | ||||||
Merck & Co., Inc. | 10,929 | 840,112 | ||||||
Zoetis, Inc., Cl. A | 4,902 | 993,636 | ||||||
2,605,905 | ||||||||
RAILROADS—0.6% Union Pacific Corp. | 2,735 | 598,309 | ||||||
RESTAURANTS—1.0% Starbucks Corp. | 7,708 | 935,983 | ||||||
SEMICONDUCTOR EQUIPMENT—4.6% ASML Holding NV | 1,580 | 1,211,449 | ||||||
Lam Research Corp. | 4,234 | 2,698,794 | ||||||
SolarEdge Technologies, Inc.* | 1,876 | 486,785 | ||||||
4,397,028 | ||||||||
SEMICONDUCTORS—5.0% NVIDIA Corp. | 14,076 | 2,744,679 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd.# | 11,145 | 1,299,953 | ||||||
Universal Display Corp. | 2,864 | 671,579 | ||||||
4,716,211 | ||||||||
SOFT DRINKS—1.1% PepsiCo, Inc. | 6,849 | 1,074,951 | ||||||
SYSTEMS SOFTWARE—9.9% Microsoft Corp. | 33,051 | 9,416,560 | ||||||
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—5.3% Apple, Inc. | 34,222 | 4,991,621 | ||||||
TOTAL COMMON STOCKS (Cost $32,120,443) | 90,946,369 | |||||||
REAL ESTATE INVESTMENT TRUST—2.8% | SHARES | VALUE | ||||||
INDUSTRIAL—1.0% Prologis, Inc. | 7,288 | 933,155 | ||||||
SPECIALIZED—1.8% Equinix, Inc. | 1,564 | 1,283,121 | ||||||
SBA Communications Corp., Cl. A | 1,356 | 462,383 | ||||||
1,745,504 | ||||||||
TOTAL REAL ESTATE INVESTMENT TRUST (Cost $1,467,994) | 2,678,659 | |||||||
Total Investments (Cost $33,588,437) | 98.6 | % | $ | 93,625,028 | ||||
Unaffiliated Securities (Cost $33,588,437) | 93,625,028 | |||||||
Other Assets in Excess of Liabilities | 1.4 | % | 1,319,945 | |||||
NET ASSETS | 100.0 | % | $ | 94,944,973 |
# American Depositary Receipts.
* Non-income producing security.
See Notes to Financial Statements.
- 26 -
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1 — General:
The Alger Funds II (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 four series—Alger Spectra Fund, Alger Dynamic Opportunities Fund, Alger Emerging Markets Fund and Alger Responsible Investing Fund (collectively, the “Funds” or individually, each a “Fund”). The Funds normally invest primarily in equity securities and each has an investment objective of long-term capital appreciation.
Each Fund offers one or more of the following share classes: Class A shares, Class C shares, Class I shares, Class Y shares and Class Z shares. Class A shares are generally subject to an initial sales charge while Class C shares are generally subject to a deferred sales charge. Class C shares will automatically convert to Class A shares on the fifth business day of the month following the eighth 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 not convert to Class A shares or may be converted on a different schedule. At conversion, a proportionate amount of shares representing reinvested dividends and distributions will also be converted into Class A shares. Effective August 27, 2019, Class C shares were closed to direct shareholders and are only available for purchase through certain financial intermediaries and group retirement plan recordkeeping platforms, Class I shares and Class Y shares are sold to institutional investors without an initial or deferred sales charge and Class Z shares are generally subject to a minimum initial investment of $500,000. Each class has identical rights to assets and earnings, except that each share class bears the pro rata allocation of a Fund’s expenses other than a class expense (not including advisory or custodial fees or other expenses related to the management of the Fund’s assets).
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).
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.
- 27 -
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
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.
• | 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) |
- 28 -
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
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.
(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, 2021 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.
- 29 -
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Alger Spectra Fund | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
COMMON STOCKS | ||||||||||||||||
Communication Services | $ | 1,074,892,581 | $ | 1,074,892,581 | $ | — | $ | — | ||||||||
Consumer Discretionary | 1,541,852,013 | 1,471,216,601 | 63,497,449 | 7,137,963 | ||||||||||||
Energy | 41,942,494 | 41,942,494 | — | — | ||||||||||||
Financials | 373,749,557 | 373,749,557 | — | — | ||||||||||||
Healthcare | 1,217,165,216 | 1,217,165,216 | — | — | ||||||||||||
Industrials | 877,868,364 | 877,868,364 | — | — | ||||||||||||
Information Technology | 3,883,772,444 | 3,883,772,444 | — | — | ||||||||||||
Real Estate | 22,203,624 | 22,203,624 | — | — | ||||||||||||
TOTAL COMMON STOCKS | $ | 9,033,446,293 | $ | 8,962,810,881 | $ | 63,497,449 | $ | 7,137,963 | ||||||||
PREFERRED STOCKS | ||||||||||||||||
Healthcare | 436,802 | — | — | 436,802 | ||||||||||||
REAL ESTATE INVESTMENT TRUST | ||||||||||||||||
Real Estate | 65,512,815 | 65,512,815 | — | — | ||||||||||||
SPECIAL PURPOSE VEHICLE | ||||||||||||||||
Information Technology | 18,700,308 | — | — | 18,700,308 | ||||||||||||
TOTAL INVESTMENTS IN SECURITIES | $ | 9,118,096,218 | $ | 9,028,323,696 | $ | 63,497,449 | $ | 26,275,073 | ||||||||
SECURITIES SOLD SHORT | ||||||||||||||||
COMMON STOCKS | ||||||||||||||||
Communication Services | $ | 76,352,467 | $ | 76,352,467 | $ | — | $ | — | ||||||||
Consumer Discretionary | 49,410,021 | 49,410,021 | — | — | ||||||||||||
Consumer Staples | 128,778,661 | 128,778,661 | — | — | ||||||||||||
Financials | 30,677,168 | 30,677,168 | — | — | ||||||||||||
Healthcare | 8,410,906 | 8,410,906 | — | — | ||||||||||||
Industrials | 101,128,518 | 101,128,518 | — | — | ||||||||||||
Information Technology | 114,601,033 | 114,601,033 | — | — | ||||||||||||
Market Indices | 128,472,694 | 128,472,694 | — | — | ||||||||||||
Materials | 3,479,533 | 3,479,533 | — | — | ||||||||||||
TOTAL COMMON STOCKS | $ | 641,311,001 | $ | 641,311,001 | $ | — | $ | — | ||||||||
REAL ESTATE INVESTMENT TRUST | ||||||||||||||||
Real Estate | 18,458,720 | 18,458,720 | — | — | ||||||||||||
TOTAL SECURITIES SOLD SHORT | $ | 659,769,721 | $ | 659,769,721 | $ | — | $ | — | ||||||||
Alger Dynamic Opportunities Fund | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
COMMON STOCKS | ||||||||||||||||
Communication Services | $ | 44,177,607 | $ | 44,177,607 | $ | — | $ | — | ||||||||
Consumer Discretionary | 141,411,235 | 134,400,852 | 7,010,383 | — | ||||||||||||
Consumer Staples | 3,904,091 | 3,904,091 | — | — | ||||||||||||
Energy | 16,277,321 | 16,277,321 | — | — | ||||||||||||
Financials | 89,001,940 | 89,001,940 | — | — | ||||||||||||
Healthcare | 182,928,863 | 182,928,863 | — | — | ||||||||||||
Industrials | 86,115,145 | 86,115,145 | — | — | ||||||||||||
Information Technology | 194,048,563 | 194,048,563 | — | — | ||||||||||||
Materials | 7,518,605 | 7,518,605 | — | — | ||||||||||||
Real Estate | 19,755,647 | 19,755,647 | — | — | ||||||||||||
TOTAL COMMON STOCKS | $ | 785,139,017 | $ | 778,128,634 | $ | 7,010,383 | $ | — |
- 30 -
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Alger Dynamic Opportunities Fund | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
PREFERRED STOCKS | ||||||||||||||||
Healthcare | $ | 6,213 | $ | — | $ | — | $ | 6,213 | ||||||||
RIGHTS | ||||||||||||||||
Healthcare | 97,103 | — | — | 97,103 | ||||||||||||
REAL ESTATE INVESTMENT TRUST | ||||||||||||||||
Real Estate | 10,601,285 | 10,601,285 | — | — | ||||||||||||
SPECIAL PURPOSE VEHICLE | ||||||||||||||||
Information Technology | 2,313,036 | — | — | 2,313,036 | ||||||||||||
PURCHASED OPTIONS | ||||||||||||||||
Financials | 11,775 | — | 11,775 | — | ||||||||||||
TOTAL INVESTMENTS IN SECURITIES | $ | 798,168,429 | $ | 788,729,919 | $ | 7,022,158 | $ | 2,416,352 | ||||||||
FINANCIAL DERIVATIVE INSTRUMENTS - ASSETS | ||||||||||||||||
Swaps – Contracts for difference | 1,960 | — | 1,960 | — | ||||||||||||
SECURITIES SOLD SHORT | ||||||||||||||||
COMMON STOCKS | ||||||||||||||||
Communication Services | 9,496,631 | 9,496,631 | — | — | ||||||||||||
Consumer Discretionary | 22,796,487 | 22,725,661 | 70,826 | — | ||||||||||||
Consumer Staples | 6,786,408 | 6,786,408 | — | — | ||||||||||||
Energy | 1,360,886 | 1,360,886 | — | — | ||||||||||||
Financials | 19,349,590 | 19,349,590 | — | — | ||||||||||||
Healthcare | 9,162,297 | 9,162,297 | — | — | ||||||||||||
Industrials | 14,627,731 | 14,627,731 | — | — | ||||||||||||
Information Technology | 39,223,502 | 37,991,929 | 1,231,573 | — | ||||||||||||
Market Indices | 149,653,814 | 149,653,814 | — | — | ||||||||||||
Materials | 7,104,476 | 7,104,476 | — | — | ||||||||||||
Real Estate | 5,066,943 | 5,066,943 | — | — | ||||||||||||
TOTAL COMMON STOCKS | $ | 284,628,765 | $ | 283,326,366 | $ | 1,302,399 | $ | — | ||||||||
REAL ESTATE INVESTMENT TRUST | ||||||||||||||||
Real Estate | 31,614,080 | 31,614,080 | — | — | ||||||||||||
TOTAL SECURITIES SOLD SHORT | $ | 316,242,845 | $ | 314,940,446 | $ | 1,302,399 | $ | — |
Alger Emerging Markets Fund | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
COMMON STOCKS | ||||||||||||||||
Communication Services | $ | 3,788,564 | $ | 1,637,737 | $ | 2,150,827 | $ | — | ||||||||
Consumer Discretionary | 10,785,648 | 3,503,437 | 7,282,211 | — | ||||||||||||
Consumer Staples | 624,699 | 205,584 | 419,115 | — | ||||||||||||
Financials | 3,672,703 | 624,765 | 3,047,938 | — | ||||||||||||
Healthcare | 2,348,866 | 771,032 | 1,577,834 | — | ||||||||||||
Industrials | 2,708,896 | 1,276,846 | 1,432,050 | — | ||||||||||||
Information Technology | 11,147,551 | 1,454,496 | 9,693,055 | — | ||||||||||||
Materials | 1,906,704 | 607,201 | 1,299,503 | — | ||||||||||||
Real Estate | 1,658,749 | — | 1,658,749 | — | ||||||||||||
TOTAL COMMON STOCKS | $ | 38,642,380 | $ | 10,081,098 | $ | 28,561,282 | $ | — | ||||||||
TOTAL INVESTMENTS IN SECURITIES | $ | 38,642,380 | $ | 10,081,098 | $ | 28,561,282 | $ | — |
- 31 -
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Alger Responsible Investing Fund | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
COMMON STOCKS | ||||||||||||||||
Communication Services | $ | 9,913,991 | $ | 9,913,991 | $ | — | $ | — | ||||||||
Consumer Discretionary | 15,161,461 | 15,161,461 | — | — | ||||||||||||
Consumer Staples | 2,642,387 | 2,642,387 | — | — | ||||||||||||
Financials | 3,874,035 | 3,874,035 | — | — | ||||||||||||
Healthcare | 8,677,218 | 8,677,218 | — | — | ||||||||||||
Industrials | 3,787,362 | 3,787,362 | — | — | ||||||||||||
Information Technology | 44,591,909 | 44,591,909 | — | — | ||||||||||||
Materials | 1,837,773 | 1,837,773 | — | — | ||||||||||||
Utilities | 460,233 | 460,233 | — | — | ||||||||||||
TOTAL COMMON STOCKS | $ | 90,946,369 | $ | 90,946,369 | $ | — | $ | — | ||||||||
REAL ESTATE INVESTMENT TRUST | ||||||||||||||||
Real Estate | 2,678,659 | 2,678,659 | — | — | ||||||||||||
TOTAL INVESTMENTS IN SECURITIES | $ | 93,625,028 | $ | 93,625,028 | $ | — | $ | — |
FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||||
Alger Spectra Fund | Common Stocks | |||
Opening balance at November 1, 2020 | $ | 13,384,440 | ||
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 | (6,246,477 | ) | ||
Purchases and sales | ||||
Purchases | — | |||
Sales | — | |||
Closing balance at July 31, 2021 | 7,137,963 | |||
Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2021 | $ | (6,246,477 | ) |
- 32 -
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||||
Alger Spectra Fund | Preferred Stocks | |||
Opening balance at November 1, 2020 | $ | 436,802 | ||
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, 2021 | 436,802 | |||
Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2021 | $ | — |
Alger Spectra Fund | Special Purpose Vehicle | |||
Opening balance at November 1, 2020 | $ | 7,350,000 | ||
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 | 6,775,308 | |||
Purchases and sales | ||||
Purchases | 4,575,000 | |||
Sales | — | |||
Closing balance at July 31, 2021 | 18,700,308 | |||
Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2021 | $ | 6,775,308 |
- 33 -
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||||
Alger Dynamic Opportunities Fund | Preferred Stocks | |||
Opening balance at November 1, 2020 | $ | 6,213 | ||
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, 2021 | 6,213 | |||
Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2021 | $ | — |
Alger Dynamic Opportunities Fund | Rights | |||
Opening balance at November 1, 2020 | $ | 87,015 | * | |
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 | 10,088 | |||
Purchases and sales | ||||
Purchases | — | * | ||
Sales | — | |||
Closing balance at July 31, 2021 | 97,103 | |||
Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2021 | $ | 10,088 |
- 34 -
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||||
Alger Dynamic Opportunities Fund | Special Purpose Vehicle | |||
Opening balance at November 1, 2020 | $ | 925,000 | ||
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 | 838,036 | |||
Purchases and sales | ||||
Purchases | 550,000 | |||
Sales | — | |||
Closing balance at July 31, 2021 | 2,313,036 | |||
Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2021 | $ | 838,036 |
* Includes securities that are fair valued at zero.
The following table provides quantitative information about each Fund's Level 3 fair value measurements of the Funds' investments as of July 31, 2021. 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 July 31, 2021 | Valuation Methodology | Unobservable Input | Input/Range | Weighted Average Inputs | |||||
Alger Spectra Fund | |||||||||
Common Stocks | 7,137,963 | Income Approach | Discount Rate | 0.00%-3.04% | N/A | ||||
Preferred Stocks | 436,802 | Income Approach | Discount Rate | 72.50%-77.50% | N/A | ||||
Special Purpose Vehicle | 18,700,308 | Income Approach | Revenue Multiple | 27x – 28x | N/A |
Alger Dynamic Opportunities Fund | |||||||||
Preferred Stocks | 6,213 | Income Approach | Discount Rate | 72.50%-77.50% | N/A | ||||
Rights | 97,103 | Income Approach | Discount Rate | 3.26%-3.98% | N/A | ||||
Probability of Success | 0.00%-100.00% | N/A | |||||||
Special Purpose Vehicle | 2,313,036 | Income Approach | Revenue Multiple | 27x – 28x | N/A |
- 35 -
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
The significant unobservable inputs used in the fair value measurement of the Fund's securities are revenue and EBITDA multiples, discount rates, and the probabilities of success of certain outcomes. Significant increases and decreases in these inputs in isolation and interrelationships between these inputs would have resulted 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, 2021, such assets were categorized within the ASC 820 disclosure hierarchy as follows:
TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | |||||||||||||
Cash, Foreign Cash and Cash Equivalents: | ||||||||||||||||
Alger Spectra Fund | $ | 22,168 | $ | – $ | 22,168 | $ | – | |||||||||
Collateral held for short sales(a) | 113,288,394 | 113,288,394 | – | – | ||||||||||||
Due to broker(b) | (18,148,619 | ) | (18,148,619 | ) | – | – | ||||||||||
Alger Dynamic Opportunities Fund | 67,266,065 | – | 67,266,065 | – | ||||||||||||
Collateral held for short sales(a) | 258,696,567 | 258,696,567 | – | – | ||||||||||||
Alger Emerging Markets Fund | 741,581 | 260,866 | 480,815 | – | ||||||||||||
Alger Responsible Investing Fund | 1,302,801 | – | 1,302,801 | – |
(a) The collateral held for short sales balance represents restricted cash held at prime brokers as of July 31, 2021.
(b) The due to broker balance represents a margin payable related to short sales due to prime brokers as of July 31, 2021.
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 — The Funds seek to capture the majority of the returns associated with equity market investments. To meet this investment goal, the Funds invest in a broadly diversified portfolio of common stocks, the Funds may also buy and sell call and put options on equities and equity indexes. The Funds may also purchase call options to increase their exposure to the stock market and also provide diversification of risk. The Funds may also purchase put options in order to protect from significant market declines that may occur over a short period of time. The Funds may also 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, 2021, options were used in accordance with these objectives.
- 36 -
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
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.
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, the Funds 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, the Funds could be exposed to foreign currency fluctuation.
Swaps—Certain Funds may engage in swap transactions, including currency swaps, index swaps and interest rate swaps. A Fund may enter into swaps for both hedging purposes and to seek to increase total return. A Fund also may enter into options on swap agreements, sometimes called “swaptions.”
Swap agreements are two-party contracts entered into primarily by institutional investors for periods ranging from a few weeks to more than one year. In a standard “swap” transaction, two parties agree to exchange the returns (or differentials in rates of return) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are generally calculated with respect to a “notional amount,” i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate, in a particular foreign currency, or in a “basket” of swaps or securities representing a particular index. The “notional amount” of the swap agreement is only used as a basis upon which to calculate the obligations that the parties to a swap agreement have agreed to exchange.
The use of swap agreements is a highly specialized activity which involves strategies and risks different from those associated with ordinary portfolio security transactions. If Alger Management is incorrect in its forecasts of applicable market factors, or a counterparty defaults, the investment performance of the Fund would diminish compared with what it would have been if these techniques were not used. In addition, it is possible that developments in the swap market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements.
- 37 -
THE ALGER FUNDS II
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
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, 2021. Information regarding the Funds’ holdings of such securities is set forth in the following table:
Security | Value at October 31, 2020 | Purchases/ Conversion | Sales/ Conversion | Dividend/ Interest Income | Realized Gain (Loss) | Net Change in Unrealized App(Dep) | Value at July 31, 2021 | |||||||||||||||||||||
Alger Spectra Fund | ||||||||||||||||||||||||||||
Preferred Stocks | ||||||||||||||||||||||||||||
Prosetta Biosciences, Inc., Series D | $ | 436,802 | $ | – | $ | – | $ | – | $ | – | $ | – | $ | 436,802 | ||||||||||||||
Special Purpose Vehicle | ||||||||||||||||||||||||||||
Crosslink Ventures Capital LLC, Cl. A | 7,350,000 | – | – | – | – | 4,175,976 | 11,525,976 | |||||||||||||||||||||
Crosslink Ventures Capital LLC, Cl. B | – | 4,575,000 | – | – | – | 2,599,332 | 7,174,332 | |||||||||||||||||||||
Total | $ | 7,786,802 | $ | 4,575,000 | $ | – | $ | – | $ | – | $ | 6,775,308 | $ | 19,137,110 |
Security | Value at October 31, 2020 | Purchases/ Conversion | Sales/ Conversion | Dividend/ Interest Income | Realized Gain (Loss) | Net Change in Unrealized App(Dep) | Value at July 31, 2021 | |||||||||||||||||||||
Alger Dynamic Opportunities Fund | ||||||||||||||||||||||||||||
Preferred Stocks | ||||||||||||||||||||||||||||
Prosetta Biosciences, Inc., Series D | $ | 6,213 | $ | – | $ | – | $ | – | $ | – | $ | – | $ | 6,213 | ||||||||||||||
Special Purpose Vehicle | ||||||||||||||||||||||||||||
Crosslink Ventures Capital LLC, Cl. A | 925,000 | – | – | – | – | 525,548 | 1,450,548 | |||||||||||||||||||||
Crosslink Ventures Capital LLC, Cl. B | – | 550,000 | – | – | – | 312,488 | 862,488 | |||||||||||||||||||||
Total | $ | 931,213 | $ | 550,000 | $ | – | $ | – | $ | – | $ | 838,036 | $ | 2,319,249 |
- 38 -