The Fred Alger Management, Inc. (Alger) Capital Appreciation Focus strategy has been added to the SEI Canada’s U.S. Large Company Equity Fund (the Fund).

Investment Philosophy and Process

Alger’s investment philosophy focuses on exploiting positive dynamic change through developing a differentiated view. The investment team believes its competitive advantages are to identify change, analyze which companies will ultimately be the beneficiaries of the change, and capitalize on a differentiated view of a company’s future earnings growth before the change is fully recognized by the market. Alger’s philosophy diverges from most growth/momentum managers through its additional consideration of companies benefiting from a lifecycle change, such as a new business model, new management, or corporate restructuring.

The investment process is focused on idea generation and identifying the most impactful themes in the market. Alger’s analysts identify companies experiencing dynamic changes in their sectors and regions. They perform in-depth analysis to develop a differentiated view, supported by detailed financial models and stress-tested for a range of potential outcomes. The analysts then present their idea to portfolio manager Patrick Kelly, who challenges their assumptions. The end portfolio contains about 46 stocks.

Role in the Fund

We expect Alger’s strategy to align the growth portion of the Fund with SEI’s momentum alpha source. We believe the strategy will perform best in the expansion phase of the market cycle.

About Alger

Based in New York, NY, Fred Alger Management, Inc. is a family-owned firm in the established phase of its lifecycle. As at 30 September 2018, the firm had US$28.1 billion in assets under management.


Glossary of Financial Terms

Alpha Source: Alpha source is a term used by SEI as part of our internal classification system to categorise and evaluate investment managers in order to build diversified fund portfolios. An alpha source is the investment approach taken by an active investment manager in an effort to generate excess returns. Another way to define an alpha source is that it is the inefficiency that an active investment manager seeks to exploit in order to add value.

Momentum: Momentum refers to stocks whose prices are expected to keep moving in the same direction (either up or down) and are not likely to change direction in the short-term.












Important Information

SEI Investments Canada Company, a wholly owned subsidiary of SEI Investments Company, is the Manager of the SEI Funds in Canada. The information contained herein is for general and educational information purposes only and is not intended to constitute legal, tax, accounting, securities, research or investment advice regarding the Funds or any security in particular, nor an opinion regarding the appropriateness of any investment. This information should not be construed as a recommendation to purchase or sell a security, derivative or futures contract. You should not act or rely on the information contained herein without obtaining specific legal, tax, accounting and investment advice from an investment professional. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. There is no assurance as of the date of this material that the securities mentioned remain in or out of the SEI Funds. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.