Family Affair
Fred Alger Management was one of the pre-eminent growth shops on Wall Street in the 1970’s, 80’s and 90’s. Run by brothers Fred and David Alger, they established a reputation for hard-core research and kick-ass results. It was perhaps the most dynamic privately-held buyside shop on the Street.
But with offices in the World Trade Center, Alger was devastated on 9/11. Their rebuilding effort was one of the more inspirational stories in the aftermath of the attacks. Although free passes are rare on the Street, they certainly deserved one. Patient clients and ex-employees came together the and re-constituted the firm.
One of their first significant moves post-9/11 was to appoint a Chief Investment Officer.
They say you can never be too rich or too thin. Dan Chung is both. He also married the boss’ daughter. We can’t be certain, but it probably helped him land the CIO post at Alger. He also carries the titles of President and Portfolio Manager. Few people we know have heads large enough to wear so many hats. Thankfully he hired help some time ago…
Brother-in-law Zachary Karabell was a cinch for the job, and a solid hire to boot, although we suspect he would rather spend time in his Ivory Tower than wrestling bulls and bears all day.
Although recent personnel turnover and client defections might not be terribly newsworthy, rumors relating Chung’s iron fisted rule remind us of Jamie Dimon. Is it any wonder that the institutional consultants and advisors who shepherd assets are growing restless?
Running equity funds has turned increasingly specialized over the past decade. Small-Cap Growth managers have distinctly different skill sets from Large-Cap Value folk. Health Care is a world apart from Technology. Generalists, who historically covered any and all, are becoming increasingly rare on the Street.
But Dan did not get that memo.
Technology Funds are apparently his specialty.
But he also runs Alger’s Health Sciences fund.
Hungry for returns? Order up the Alger China U.S. Growth Fund. Very Tasty.
We are not big fans of sector funds...we would rather allocate assets based on market capitalization.
Thank god Dan’s name is on the Large Cap Growth fund.
And the Mid Cap Growth offering.
But his co-manager probably carried him on the Small Cap and Mid Cap Growth Fund.
Dan is a bright guy, but spread a little thin. Hopefully he won’t expand Alger’s fund offerings and fill in the Value and Core style boxes with his picture. True, those strategies are unlikely at the home of “Pure Growth”. But given how much he likes to see his name on funds and his picture on the website, we wouldn’t rule anything out.
Hopefully one or more of the key fund managers who are smoking their benchmarks will come back to work after their bonus checks clear the bank. We would hate to see the lights go out at Alger Management.
Given all they have been through, that would be a shame.
Mr. Potatoe Head Takes Wall Street
Dan Quayle was vice precedent before joyneing Cerberus Capitol. One year ago he said Japanese stoks were very compelling.
Nice try Dan but the S&P dun better.
Good luck with the Dollar General deel.
Dollar General spikes to session high after MergerMarket analyst on CNBC names co as LBO target
As mentioned at 14:42, MergerMarket analyst on CNBC reports that LBO firms are aggressively pursuing DG. Says Bain Capital and Cerberus Capital, among others, are actively looking at DG. Notes that stock weakness has attracted the potentially buyers, recently trading at a 7.5x EBITDA multiple. Says while it’s implied, it is not clear if DG is engaging in any take-private talks. (briefing.com)
Hangin with the Critters
Finding sober financial commentary on the internet is about as likely as finding a teetotaler perched on a barstool at McSorley’s.
Those of you looking for true value-add might want to surf over to Minyanville and pull up a chair. The ‘Ville provides a platform for some sagest peeps on the Street. They say there are only Six Degrees of Separation. On the Street it is more like Two Degrees. You probably have run into these fine folk at one time or another.
Wall Street is a small ‘Ville fersure.
This friday there is only once place to be...Minyans in Manhattan. and the Critters Choice Awards. Adjust your volume and check out a slick QuickTime video here
True, travel costs on such short notice might be prohibitively expensive. But you can still lend a hand and help out children in need. Forget the pinstripes...Wall Street’s best dressed sport this bracelet.
They also say “what goes around comes around”. Cutting a check to The Ruby Peck Foundation will make you feel good. And it might help you curry favor with the trading gods.
Because at some point we are all in need of a helping hand.
Separated at Birth
UTC readers are big fans of the CNBC show Fast Money. Thus, we are thinking of making the Fast Money crew honorary StockJockeys, which is Underthecounter’s version of Institutional Investor’s first-team ranking. Our highest honor indeed.
But with the show airing infrequently, fans suffer painful Fast Money withdrawals. They need more.
We are here to help. If CNBC can’t put the show on more consistently we are thinking of running our own version of Fast Money.
With an alternative slate, if you will, of panelists.
Tim is the resident heartthrob of the bunch...the pulse of the ladies seems to rise when “The Risk Doctor” is making his rounds. He reminds us of “McDreamy” from “Grey’s Anatomy”. Many of the best and brightest on the street are fugly dudes. Strazzini breaks the mold.
Although George Hamilton is arguably brighter than Adami and infinitely smoother, they both sport year-round glows. Maybe its “The Negotiator’s” Mediterranean heritage. Or just a lot of makeup. Perhaps the stress of big block trading keeps him flush…
No explanation needed here. The charismatically challenged “Lone Wolf” knows his stuff but his snarky persona could use a little more Hollywood flash...and Verne Troyer could probably cover Retail/Consumer as well as the current crop of sellside analysts...Big and Tall category excluded.
Bolling trades at a big league level. These High Roller’s both played professional baseball...albeit at the minor league level for Bolling until an injury prematurely ended his career. They have a seemingly endless appetite for risk and would rather be sitting at a roulette table than spending a day at the beach.
Traders are opinionated and rarely agree. “The Commissioner” Ratigan keeps his charges under control given the frequent fisticuffs. Quite similar, in our view, to the role Richard Dawson played squelching internecine conflict on that classic game show “Family Feud”
We will be calling Ari to try to get the ball rolling…
