THE ALGER INSTITUTIONAL FUNDS
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
Schedule of Investments July 31, 2020 (Unaudited)
| COMMON STOCKS—97.2% | SHARES | VALUE | ||||||
| AEROSPACE & DEFENSE—0.4% | ||||||||
| Airbus SE | 54,466 | $ | 3,987,537 | |||||
| TransDigm Group, Inc. | 27,221 | 11,748,039 | ||||||
| 15,735,576 | ||||||||
| APPAREL ACCESSORIES & LUXURY GOODS—0.3% | ||||||||
| LVMH Moet Hennessy Louis Vuitton SE | 28,169 | 12,251,697 | ||||||
| APPLICATION SOFTWARE—8.3% | ||||||||
| Adobe, Inc.* | 272,963 | 121,282,920 | ||||||
| Cadence Design Systems, Inc.* | 86,085 | 9,404,786 | ||||||
| Intuit, Inc. | 88,521 | 27,120,179 | ||||||
| Palantir Technologies, Inc., Cl. A*,@,(a) | 239,030 | 1,374,423 | ||||||
| RingCentral, Inc., Cl. A* | 99,016 | 28,741,374 | ||||||
| salesforce.com, Inc.* | 645,541 | 125,783,664 | ||||||
| 313,707,346 | ||||||||
| AUTOMOBILE MANUFACTURERS—0.5% | ||||||||
| Tesla, Inc.* | 12,416 | 17,764,316 | ||||||
| AUTOMOTIVE RETAIL—0.1% | ||||||||
| Carvana Co., Cl. A* | 14,190 | 2,198,741 | ||||||
| BIOTECHNOLOGY—2.3% | ||||||||
| BioMarin Pharmaceutical, Inc.* | 217,112 | 26,012,189 | ||||||
| Sarepta Therapeutics, Inc.* | 84,570 | 12,983,186 | ||||||
| Vertex Pharmaceuticals, Inc.* | 183,589 | 49,936,208 | ||||||
| 88,931,583 | ||||||||
| CASINOS & GAMING—0.6% | ||||||||
| DraftKings, Inc., Cl. A* | 292,698 | 9,768,796 | ||||||
| Las Vegas Sands Corp. | 340,495 | 14,859,202 | ||||||
| 24,627,998 | ||||||||
| DATA PROCESSING & OUTSOURCED SERVICES—11.0% | ||||||||
| Fidelity National Information Services, Inc. | 856,223 | 125,273,987 | ||||||
| Fiserv, Inc.* | 120,600 | 12,034,674 | ||||||
| PayPal Holdings, Inc.* | 507,500 | 99,505,525 | ||||||
| Visa, Inc., Cl. A | 930,884 | 177,240,314 | ||||||
| 414,054,500 | ||||||||
| DIVERSIFIED BANKS—0.4% | ||||||||
| Bank of America Corp. | 472,341 | 11,751,844 | ||||||
| JPMorgan Chase & Co. | 41,041 | 3,966,202 | ||||||
| 15,718,046 | ||||||||
| DIVERSIFIED SUPPORT SERVICES—0.7% | ||||||||
| Cintas Corp. | 91,572 | 27,642,840 | ||||||
| ENVIRONMENTAL & FACILITIES SERVICES—0.4% | ||||||||
| Waste Connections, Inc. | 146,842 | 15,032,216 | ||||||
| FINANCIAL EXCHANGES & DATA—2.4% | ||||||||
| Intercontinental Exchange, Inc. | 449,129 | 43,466,705 | ||||||
| S&P Global, Inc. | 131,102 | 45,918,475 | ||||||
| 89,385,180 | ||||||||
- 1 -
THE ALGER INSTITUTIONAL FUNDS
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
Schedule of Investments July 31, 2020 (Unaudited) (Continued)
| COMMON STOCKS—97.2% (CONT.) | SHARES | VALUE | ||||||
| FOOD DISTRIBUTORS—0.3% | ||||||||
| Sysco Corp. | 214,665 | $ | 11,345,045 | |||||
| FOOTWEAR—0.3% | ||||||||
| NIKE, Inc., Cl. B | 127,677 | 12,462,552 | ||||||
| HEALTHCARE EQUIPMENT—6.8% | ||||||||
| Boston Scientific Corp.* | 1,869,417 | 72,103,414 | ||||||
| Danaher Corp. | 819,676 | 167,049,969 | ||||||
| DexCom, Inc.* | 45,189 | 19,681,617 | ||||||
| 258,835,000 | ||||||||
| HEALTHCARE SERVICES—0.3% | ||||||||
| Guardant Health, Inc.* | 134,058 | 11,419,060 | ||||||
| HEALTHCARE SUPPLIES—0.4% | ||||||||
| Align Technology, Inc.* | 52,362 | 15,385,003 | ||||||
| HOME IMPROVEMENT RETAIL—2.1% | ||||||||
| Lowe’s Cos., Inc. | 546,158 | 81,328,388 | ||||||
| INDUSTRIAL GASES—0.7% | ||||||||
| Air Products & Chemicals, Inc. | 96,231 | 27,582,692 | ||||||
| INTERACTIVE MEDIA & SERVICES—9.1% | ||||||||
| Alphabet, Inc., Cl. C* | 91,124 | 135,133,247 | ||||||
| Baidu, Inc.#,* | 27,829 | 3,322,783 | ||||||
| Facebook, Inc., Cl. A* | 639,669 | 162,264,835 | ||||||
| Pinterest, Inc., Cl. A* | 382,424 | 13,113,319 | ||||||
| Tencent Holdings Ltd. | 416,376 | 28,562,835 | ||||||
| 342,397,019 | ||||||||
| INTERNET & DIRECT MARKETING RETAIL—15.4% | ||||||||
| Alibaba Group Holding Ltd.#,* | 650,769 | 163,356,034 | ||||||
| Altaba, Inc*,@,(a) | 342,659 | 7,600,177 | ||||||
| Amazon.com, Inc.* | 122,043 | 386,227,040 | ||||||
| MercadoLibre, Inc.* | 21,359 | 24,020,759 | ||||||
| 581,204,010 | ||||||||
| INTERNET SERVICES & INFRASTRUCTURE—1.1% | ||||||||
| Shopify, Inc., Cl. A* | 6,083 | 6,228,992 | ||||||
| Twilio, Inc., Cl. A* | 91,770 | 25,458,833 | ||||||
| VeriSign, Inc.* | 55,170 | 11,678,386 | ||||||
| 43,366,211 | ||||||||
| INVESTMENT BANKING & BROKERAGE—0.4% | ||||||||
| Morgan Stanley | 318,236 | 15,555,376 | ||||||
| MANAGED HEALTHCARE—0.9% | ||||||||
| UnitedHealth Group, Inc. | 111,721 | 33,826,884 | ||||||
| METAL & GLASS CONTAINERS—0.5% | ||||||||
| Ball Corp. | 244,195 | 17,980,078 | ||||||
| MOVIES & ENTERTAINMENT—1.3% | ||||||||
| Live Nation Entertainment, Inc.* | 271,427 | 12,705,498 | ||||||
| Netflix, Inc.* | 75,362 | 36,842,974 | ||||||
| 49,548,472 | ||||||||
- 2 -
THE ALGER INSTITUTIONAL FUNDS
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
Schedule of Investments July 31, 2020 (Unaudited) (Continued)
| COMMON STOCKS—97.2% (CONT.) | SHARES | VALUE | ||||||
| PHARMACEUTICALS—0.6% | ||||||||
| GW Pharmaceuticals PLC#,* | 109,097 | $ | 13,924,050 | |||||
| Novartis AG# | 112,925 | 9,275,660 | ||||||
| 23,199,710 | ||||||||
| PROPERTY & CASUALTY INSURANCE—0.8% | ||||||||
| The Progressive Corp. | 357,197 | 32,269,177 | ||||||
| RAILROADS—1.2% | ||||||||
| Union Pacific Corp. | 267,137 | 46,308,199 | ||||||
| RESEARCH & CONSULTING SERVICES—0.7% | ||||||||
| CoStar Group, Inc.* | 27,971 | 23,768,637 | ||||||
| TransUnion | 51,139 | 4,580,520 | ||||||
| 28,349,157 | ||||||||
| RESTAURANTS—0.5% | ||||||||
| Chipotle Mexican Grill, Inc., Cl. A* | 16,617 | 19,195,294 | ||||||
| SEMICONDUCTOR EQUIPMENT—1.5% | ||||||||
| ASML Holding NV | 14,850 | 5,252,742 | ||||||
| Lam Research Corp. | 141,076 | 53,208,224 | ||||||
| 58,460,966 | ||||||||
| SEMICONDUCTORS—4.9% | ||||||||
| Advanced Micro Devices, Inc.* | 150,513 | 11,654,222 | ||||||
| Micron Technology, Inc.* | 134,059 | 6,710,323 | ||||||
| NVIDIA Corp. | 188,767 | 80,148,581 | ||||||
| NXP Semiconductors NV | 490,968 | 57,703,469 | ||||||
| QUALCOMM, Inc. | 102,769 | 10,853,434 | ||||||
| Taiwan Semiconductor Manufacturing Co., Ltd.# | 249,854 | 19,710,982 | ||||||
| 186,781,011 | ||||||||
| SPECIALTY CHEMICALS—1.3% | ||||||||
| The Sherwin-Williams Co. | 74,694 | 48,395,736 | ||||||
| SYSTEMS SOFTWARE—8.8% | ||||||||
| Microsoft Corp. | 1,458,015 | 298,907,654 | ||||||
| Palo Alto Networks, Inc.* | 89,181 | 22,823,202 | ||||||
| ServiceNow, Inc.* | 23,503 | 10,322,518 | ||||||
| 332,053,374 | ||||||||
| TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—6.7% | ||||||||
| Apple, Inc. | 603,479 | 256,502,714 | ||||||
| WIRELESS TELECOMMUNICATION SERVICES—3.2% | ||||||||
| T-Mobile US, Inc.* | 1,128,900 | 121,221,282 | ||||||
| TOTAL COMMON STOCKS (Cost $2,076,888,765) | 3,692,022,449 | |||||||
| PREFERRED STOCKS—0.2% | SHARES | VALUE | ||||||
| APPLICATION SOFTWARE—0.2% | ||||||||
| Palantir Technologies, Inc., Cl. B*,@,(a) | 974,841 | 5,605,336 | ||||||
- 3 -
THE ALGER INSTITUTIONAL FUNDS
ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND
Schedule of Investments July 31, 2020 (Unaudited) (Continued)
| PREFERRED STOCKS—0.2% (CONT.) | SHARES | VALUE | ||||||
| APPLICATION SOFTWARE—0.2% (CONT.) | ||||||||
| Palantir Technologies, Inc., Cl. D*,@,(a) | 127,007 | $ | 730,290 | |||||
| 6,335,626 | ||||||||
| TOTAL PREFERRED STOCKS (Cost $7,275,902) | 6,335,626 | |||||||
| REAL ESTATE INVESTMENT TRUST—1.1% | SHARES | VALUE | ||||||
| SPECIALIZED—1.1% | ||||||||
| Crown Castle International Corp. | 260,033 | 43,347,501 | ||||||
| (Cost $32,413,882) | 43,347,501 | |||||||
| Total Investments (Cost $2,116,578,549) | 98.5 | % | $ | 3,741,705,576 | ||||
| Unaffiliated Securities (Cost $2,116,578,549) | 3,741,705,576 | |||||||
| Other Assets in Excess of Liabilities | 1.5 | % | 58,598,774 | |||||
| NET ASSETS | 100.0 | % | $ | 3,800,304,350 | ||||
| # | 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 | $ | 986,137 | 0.03 | % | $ | 1,244,187 | 0.03 | % | |||||||||
| Altaba, Inc. | 10/25/18 | 1,506,214 | 0.04 | % | 1,891,355 | 0.05 | % | |||||||||||
| Altaba, Inc. | 10/29/18 | 1,458,917 | 0.04 | % | 1,907,613 | 0.05 | % | |||||||||||
| Altaba, Inc. | 10/30/18 | 1,034,749 | 0.03 | % | 1,378,465 | 0.04 | % | |||||||||||
| Altaba, Inc. | 10/31/18 | 767,835 | 0.02 | % | 973,724 | 0.03 | % | |||||||||||
| Altaba, Inc. | 11/6/18 | 165,940 | 0.00 | % | 204,833 | 0.01 | % | |||||||||||
| Palantir Technologies, Inc., Cl. A | 10/7/14 | 1,555,368 | 0.05 | % | 1,374,423 | 0.04 | % | |||||||||||
| Palantir Technologies, Inc., Cl. B | 10/7/14 | 6,437,297 | 0.22 | % | 5,605,336 | 0.15 | % | |||||||||||
| Palantir Technologies, Inc., Cl. D | 10/14/14 | 838,605 | 0.03 | % | 730,290 | 0.02 | % | |||||||||||
| Total | $ | 15,310,226 | 0.40 | % | ||||||||||||||
See Notes to Financial Statements.
- 4 -
THE ALGER INSTITUTIONAL FUNDS | ALGER FOCUS EQUITY FUND
Schedule of Investments July 31, 2020 (Unaudited)
| COMMON STOCKS—96.9% | SHARES | VALUE | ||||||
| AEROSPACE & DEFENSE—0.2% | ||||||||
| TransDigm Group, Inc. | 4,342 | $ | 1,873,920 | |||||
| APPLICATION SOFTWARE—7.2% | ||||||||
| Adobe, Inc.* | 72,418 | 32,176,766 | ||||||
| Avalara, Inc.* | 30,373 | 4,083,650 | ||||||
| Intuit, Inc. | 16,303 | 4,994,750 | ||||||
| salesforce.com, Inc.* | 166,131 | 32,370,625 | ||||||
| 73,625,791 | ||||||||
| BIOTECHNOLOGY—1.5% | ||||||||
| BioMarin Pharmaceutical, Inc.* | 51,287 | 6,144,695 | ||||||
| Vertex Pharmaceuticals, Inc.* | 35,504 | 9,657,088 | ||||||
| 15,801,783 | ||||||||
| CASINOS & GAMING—0.6% | ||||||||
| DraftKings, Inc., Cl. A* | 191,394 | 6,387,775 | ||||||
| DATA PROCESSING & OUTSOURCED SERVICES—12.1% | ||||||||
| Fidelity National Information Services, Inc. | 264,156 | 38,648,664 | ||||||
| PayPal Holdings, Inc.* | 198,854 | 38,989,304 | ||||||
| Visa, Inc., Cl. A | 246,256 | 46,887,143 | ||||||
| 124,525,111 | ||||||||
| DIVERSIFIED SUPPORT SERVICES—1.1% | ||||||||
| Cintas Corp. | 36,509 | 11,020,972 | ||||||
| EDUCATION SERVICES—0.2% | ||||||||
| Bright Horizons Family Solutions, Inc.* | 19,269 | 2,066,408 | ||||||
| FINANCIAL EXCHANGES & DATA—2.1% | ||||||||
| S&P Global, Inc. | 60,507 | 21,192,577 | ||||||
| FOOD DISTRIBUTORS—0.4% | ||||||||
| US Foods Holding Corp.* | 178,471 | 3,622,961 | ||||||
| HEALTHCARE EQUIPMENT—7.0% | ||||||||
| Boston Scientific Corp.* | 569,084 | 21,949,570 | ||||||
| Danaher Corp. | 212,414 | 43,289,973 | ||||||
| DexCom, Inc.* | 16,165 | 7,040,504 | ||||||
| 72,280,047 | ||||||||
| HEALTHCARE SERVICES—0.3% | ||||||||
| Guardant Health, Inc.* | 40,820 | 3,477,048 | ||||||
| HEALTHCARE SUPPLIES—0.4% | ||||||||
| Align Technology, Inc.* | 13,270 | 3,898,991 | ||||||
| HOME IMPROVEMENT RETAIL—2.1% | ||||||||
| Lowe’s Cos., Inc. | 143,122 | 21,312,297 | ||||||
| INDUSTRIAL GASES—0.5% | ||||||||
| Air Products & Chemicals, Inc. | 16,346 | 4,685,254 | ||||||
| INTERACTIVE MEDIA & SERVICES—8.3% | ||||||||
| Alphabet, Inc., Cl. C* | 24,941 | 36,986,505 | ||||||
| Facebook, Inc., Cl. A* | 166,803 | 42,312,917 | ||||||
| Pinterest, Inc., Cl. A* | 185,107 | 6,347,319 | ||||||
| 85,646,741 | ||||||||
- 5 -
THE ALGER INSTITUTIONAL FUNDS | ALGER FOCUS EQUITY FUND
Schedule of Investments July 31, 2020 (Unaudited) (Continued)
| COMMON STOCKS—96.9% (CONT.) | SHARES | VALUE | ||||||
| INTERNET & DIRECT MARKETING RETAIL—15.8% | ||||||||
| Alibaba Group Holding Ltd.#,* | 180,291 | $ | 45,256,647 | |||||
| Amazon.com, Inc.* | 32,973 | 104,348,993 | ||||||
| Farfetch Ltd., Cl. A* | 120,723 | 3,094,130 | ||||||
| MercadoLibre, Inc.* | 8,942 | 10,056,352 | ||||||
| 162,756,122 | ||||||||
| INVESTMENT BANKING & BROKERAGE—0.4% | ||||||||
| Morgan Stanley | 83,917 | 4,101,863 | ||||||
| MANAGED HEALTHCARE—2.0% | ||||||||
| UnitedHealth Group, Inc. | 66,849 | 20,240,540 | ||||||
| MOVIES & ENTERTAINMENT—0.7% | ||||||||
| Netflix, Inc.* | 14,487 | 7,082,405 | ||||||
| PHARMACEUTICALS—0.5% | ||||||||
| GW Pharmaceuticals PLC#,* | 38,560 | 4,921,413 | ||||||
| PROPERTY & CASUALTY INSURANCE—1.0% | ||||||||
| The Progressive Corp. | 118,423 | 10,698,334 | ||||||
| RAILROADS—1.1% | ||||||||
| Union Pacific Corp. | 64,874 | 11,245,908 | ||||||
| RESEARCH & CONSULTING SERVICES—0.3% | ||||||||
| CoStar Group, Inc.* | 3,313 | 2,815,255 | ||||||
| RESTAURANTS—0.5% | ||||||||
| Starbucks Corp. | 66,150 | 5,062,460 | ||||||
| SEMICONDUCTOR EQUIPMENT—2.8% | ||||||||
| Applied Materials, Inc. | 447,983 | 28,818,746 | ||||||
| SEMICONDUCTORS—6.2% | ||||||||
| Advanced Micro Devices, Inc.* | 75,497 | 5,845,733 | ||||||
| Microchip Technology, Inc. | 40,167 | 4,086,189 | ||||||
| NVIDIA Corp. | 55,660 | 23,632,679 | ||||||
| NXP Semiconductors NV | 218,482 | 25,678,189 | ||||||
| QUALCOMM, Inc. | 40,442 | 4,271,080 | ||||||
| 63,513,870 | ||||||||
| SPECIALTY CHEMICALS—2.1% | ||||||||
| The Sherwin-Williams Co. | 32,561 | 21,096,923 | ||||||
| SYSTEMS SOFTWARE—8.8% | ||||||||
| Microsoft Corp. | 403,265 | 82,673,358 | ||||||
| Palo Alto Networks, Inc.* | 28,482 | 7,289,113 | ||||||
| 89,962,471 | ||||||||
| TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—6.6% | ||||||||
| Apple, Inc. | 159,948 | 67,984,298 | ||||||
| TRUCKING—0.4% | ||||||||
| Uber Technologies, Inc.* | 137,707 | 4,167,014 | ||||||
| WIRELESS TELECOMMUNICATION SERVICES—3.7% | ||||||||
| T-Mobile US, Inc.* | 356,234 | 38,252,407 | ||||||
| TOTAL COMMON STOCKS | ||||||||
| (Cost $701,507,346) | 994,137,705 | |||||||
- 6 -
THE ALGER INSTITUTIONAL FUNDS | ALGER FOCUS EQUITY 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) | 76,825 | $ | 60,692 | |||||
| (Cost $345,713) | 60,692 | |||||||
| REAL ESTATE INVESTMENT TRUST—1.9% | SHARES | VALUE | ||||||
| SPECIALIZED—1.9% | ||||||||
| Crown Castle International Corp. | 115,973 | 19,332,699 | ||||||
| (Cost $16,346,923) | 19,332,699 | |||||||
| Total Investments | ||||||||
| (Cost $718,199,982) | 98.8 | % | $ | 1,013,531,096 | ||||
| Affiliated Securities (Cost $345,713) | 60,692 | |||||||
| Unaffiliated Securities (Cost $717,854,269) | 1,013,470,404 | |||||||
| Other Assets in Excess of Liabilities | 1.2 | % | 12,766,008 | |||||
| NET ASSETS | 100.0 | % | $ | 1,026,297,104 | ||||
| # | 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. |
| * | 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 | $ | 345,713 | 0.80 | % | $ | 60,692 | 0.01 | % | |||||||||||
| Total | $ | 60,692 | 0.01 | % | ||||||||||||||||
See Notes to Financial Statements.
- 7 -
THE ALGER INSTITUTIONAL FUNDS | ALGER MID CAP GROWTH INSTITUTIONAL FUND
Schedule of Investments July 31, 2020 (Unaudited)
| COMMON STOCKS—94.2% | SHARES | VALUE | ||||||
| AEROSPACE & DEFENSE—1.9% | ||||||||
| HEICO Corp. | 5,067 | $ | 487,040 | |||||
| Mercury Systems, Inc.* | 12,410 | 960,907 | ||||||
| TransDigm Group, Inc. | 1,128 | 486,822 | ||||||
| 1,934,769 | ||||||||
| ALTERNATIVE CARRIERS—0.6% | ||||||||
| Bandwidth, Inc., Cl. A* | 4,060 | 587,807 | ||||||
| APPAREL ACCESSORIES & LUXURY GOODS—1.3% | ||||||||
| Lululemon Athletica, Inc.* | 3,960 | 1,289,336 | ||||||
| APPAREL RETAIL—0.5% | ||||||||
| Burlington Stores, Inc.* | 2,627 | 493,876 | ||||||
| APPLICATION SOFTWARE—14.9% | ||||||||
| ANSYS, Inc.* | 2,376 | 737,986 | ||||||
| Atlassian Corp. PLC, Cl. A* | 4,689 | 828,312 | ||||||
| Avalara, Inc.* | 10,710 | 1,439,960 | ||||||
| Benefitfocus, Inc.* | 44,950 | 526,365 | ||||||
| Bill.com Holdings, Inc.* | 6,131 | 570,857 | ||||||
| Cadence Design Systems, Inc.* | 14,405 | 1,573,746 | ||||||
| Coupa Software, Inc.* | 5,825 | 1,785,070 | ||||||
| DocuSign, Inc., Cl. A* | 5,011 | 1,086,535 | ||||||
| Dynatrace, Inc.* | 11,629 | 486,441 | ||||||
| Fair Isaac Corp.* | 1,669 | 733,008 | ||||||
| Five9, Inc.* | 6,287 | 759,595 | ||||||
| Palantir Technologies, Inc., Cl. A*,@,(a) | 12,426 | 71,450 | ||||||
| Paycom Software, Inc.* | 3,314 | 942,402 | ||||||
| PTC, Inc.* | 9,062 | 775,345 | ||||||
| RingCentral, Inc., Cl. A* | 4,107 | 1,192,139 | ||||||
| Splunk, Inc.* | 2,398 | 503,148 | ||||||
| Vertex, Inc., Cl. A* | 640 | 15,078 | ||||||
| Workday, Inc., Cl. A* | 1,962 | 354,965 | ||||||
| Zoom Video Communications, Inc., Cl. A* | 2,397 | 608,622 | ||||||
| 14,991,024 | ||||||||
| AUTOMOTIVE RETAIL—0.7% | ||||||||
| O’Reilly Automotive, Inc.* | 1,547 | 738,507 | ||||||
| BIOTECHNOLOGY—6.4% | ||||||||
| BioMarin Pharmaceutical, Inc.* | 6,943 | 831,841 | ||||||
| BioNTech SE#,* | 2,307 | 189,428 | ||||||
| Forte Biosciences, Inc.* | 78,465 | 1,479,065 | ||||||
| Genmab AS#,* | 23,076 | 788,968 | ||||||
| Immunomedics, Inc.* | 7,785 | 328,761 | ||||||
| Moderna, Inc.* | 8,632 | 639,631 | ||||||
| Sarepta Therapeutics, Inc.* | 5,715 | 877,367 | ||||||
| Seattle Genetics, Inc.* | 5,438 | 904,176 | ||||||
| Twist Bioscience Corp.* | 6,205 | 347,728 | ||||||
| 6,386,965 | ||||||||
| BUILDING PRODUCTS—0.6% | ||||||||
| Lennox International, Inc. | 2,075 | 556,391 | ||||||
- 8 -
THE ALGER INSTITUTIONAL FUNDS | ALGER MID CAP GROWTH INSTITUTIONAL FUND
Schedule of Investments July 31, 2020 (Unaudited) (Continued)
| COMMON STOCKS—94.2% (CONT.) | SHARES | VALUE | ||||||
| CASINOS & GAMING—1.0% | ||||||||
| DraftKings, Inc., Cl. A* | 22,573 | $ | 753,374 | |||||
| Penn National Gaming, Inc.* | 8,021 | 271,511 | ||||||
| 1,024,885 | ||||||||
| DATA PROCESSING & OUTSOURCED SERVICES—1.6% | ||||||||
| Global Payments, Inc. | 5,601 | 997,090 | ||||||
| Square, Inc., Cl. A* | 4,547 | 590,428 | ||||||
| 1,587,518 | ||||||||
| DISTRIBUTORS—1.4% | ||||||||
| Pool Corp. | 4,383 | 1,388,096 | ||||||
| DIVERSIFIED SUPPORT SERVICES—2.5% | ||||||||
| Cintas Corp. | 4,007 | 1,209,593 | ||||||
| Copart, Inc.* | 13,548 | 1,263,351 | ||||||
| 2,472,944 | ||||||||
| EDUCATION SERVICES—1.0% | ||||||||
| Chegg, Inc.* | 12,736 | 1,031,234 | ||||||
| ELECTRICAL COMPONENTS & EQUIPMENT—0.7% | ||||||||
| AMETEK, Inc. | 7,375 | 687,719 | ||||||
| ELECTRONIC EQUIPMENT & INSTRUMENTS—2.0% | ||||||||
| Cognex Corp. | 11,580 | 774,354 | ||||||
| Keysight Technologies, Inc.* | 4,692 | 468,684 | ||||||
| Trimble, Inc.* | 16,500 | 734,415 | ||||||
| 1,977,453 | ||||||||
| FINANCIAL EXCHANGES & DATA—0.9% | ||||||||
| MarketAxess Holdings, Inc. | 1,039 | 536,852 | ||||||
| Tradeweb Markets, Inc., Cl. A | 7,507 | 405,903 | ||||||
| 942,755 | ||||||||
| FOOD DISTRIBUTORS—1.9% | ||||||||
| US Foods Holding Corp.* | 95,261 | 1,933,798 | ||||||
| GENERAL MERCHANDISE STORES—0.3% | ||||||||
| Ollie’s Bargain Outlet Holdings, Inc.* | 2,872 | 301,847 | ||||||
| HEALTHCARE EQUIPMENT—7.5% | ||||||||
| ABIOMED, Inc.* | 1,671 | 501,200 | ||||||
| DexCom, Inc.* | 5,899 | 2,569,251 | ||||||
| Hologic, Inc.* | 9,639 | 672,609 | ||||||
| IDEXX Laboratories, Inc.* | 595 | 236,661 | ||||||
| Insulet Corp.* | 4,040 | 821,574 | ||||||
| Masimo Corp.* | 4,162 | 916,139 | ||||||
| Nevro Corp.* | 1,789 | 237,865 | ||||||
| ResMed, Inc. | 3,866 | 782,904 | ||||||
| Sartorius AG | 1,410 | 542,629 | ||||||
| Tandem Diabetes Care, Inc.* | 2,349 | 245,377 | ||||||
| 7,526,209 | ||||||||
| HEALTHCARE SERVICES—1.3% | ||||||||
| 1Life Healthcare, Inc.* | 5,985 | 177,216 | ||||||
| Guardant Health, Inc.* | 13,527 | 1,152,230 | ||||||
| 1,329,446 | ||||||||
- 9 -
THE ALGER INSTITUTIONAL FUNDS | ALGER MID CAP GROWTH INSTITUTIONAL FUND
Schedule of Investments July 31, 2020 (Unaudited) (Continued)
| COMMON STOCKS—94.2% (CONT.) | SHARES | VALUE | ||||||
| HEALTHCARE SUPPLIES—0.8% | ||||||||
| Align Technology, Inc.* | 1,415 | $ | 415,755 | |||||
| Quidel Corp.* | 1,551 | 438,111 | ||||||
| 853,866 | ||||||||
| HEALTHCARE TECHNOLOGY—4.3% | ||||||||
| Livongo Health, Inc.* | 6,664 | 847,994 | ||||||
| Phreesia, Inc.* | 9,115 | 273,997 | ||||||
| Teladoc Health, Inc.* | 6,891 | 1,637,508 | ||||||
| Veeva Systems, Inc., Cl. A* | 5,856 | 1,549,322 | ||||||
| 4,308,821 | ||||||||
| HOTELS RESORTS & CRUISE LINES—0.5% | ||||||||
| Extended Stay America, Inc. | 41,975 | 478,935 | ||||||
| INDUSTRIAL MACHINERY—1.9% | ||||||||
| Donaldson Co., Inc. | 21,050 | 1,017,557 | ||||||
| Lincoln Electric Holdings, Inc. | 5,877 | 531,222 | ||||||
| Woodward, Inc. | 4,175 | 312,875 | ||||||
| 1,861,654 | ||||||||
| INTERACTIVE HOME ENTERTAINMENT—1.5% | ||||||||
| Activision Blizzard, Inc. | 9,131 | 754,494 | ||||||
| Take-Two Interactive Software, Inc.* | 4,437 | 727,757 | ||||||
| 1,482,251 | ||||||||
| INTERACTIVE MEDIA & SERVICES—1.2% | ||||||||
| Pinterest, Inc., Cl. A* | 34,100 | 1,169,289 | ||||||
| INTERNET & DIRECT MARKETING RETAIL—6.0% | ||||||||
| Etsy, Inc.* | 8,887 | 1,052,043 | ||||||
| Farfetch Ltd., Cl. A* | 35,530 | 910,634 | ||||||
| Fiverr International Ltd.* | 11,359 | 1,061,271 | ||||||
| Magnite, Inc.* | 49,011 | 294,311 | ||||||
| MercadoLibre, Inc.* | 1,010 | 1,135,866 | ||||||
| Wayfair, Inc., Cl. A* | 6,047 | 1,609,047 | ||||||
| 6,063,172 | ||||||||
| INTERNET SERVICES & INFRASTRUCTURE—3.4% | ||||||||
| Akamai Technologies, Inc.* | 9,271 | 1,042,431 | ||||||
| Shopify, Inc., Cl. A* | 533 | 545,792 | ||||||
| Twilio, Inc., Cl. A* | 4,058 | 1,125,770 | ||||||
| VeriSign, Inc.* | 3,538 | 748,924 | ||||||
| 3,462,917 | ||||||||
| LEISURE FACILITIES—1.4% | ||||||||
| Vail Resorts, Inc. | 7,509 | 1,441,953 | ||||||
| LEISURE PRODUCTS—0.7% | ||||||||
| Peloton Interactive, Inc., Cl. A* | 10,265 | 700,278 | ||||||
| LIFE SCIENCES TOOLS & SERVICES—2.4% | ||||||||
| Bio-Rad Laboratories, Inc., Cl. A* | 671 | 352,201 | ||||||
| Bio-Techne Corp. | 2,438 | 670,840 | ||||||
| Lonza Group AG | 739 | 462,249 | ||||||
| Repligen Corp.* | 6,031 | 910,139 | ||||||
| 2,395,429 | ||||||||
- 10 -
THE ALGER INSTITUTIONAL FUNDS | ALGER MID CAP GROWTH INSTITUTIONAL FUND
Schedule of Investments July 31, 2020 (Unaudited) (Continued)
| COMMON STOCKS—94.2% (CONT.) | SHARES | VALUE | ||||||
| METAL & GLASS CONTAINERS—0.9% | ||||||||
| Ball Corp. | 11,841 | $ | 871,853 | |||||
| MOVIES & ENTERTAINMENT—1.7% | ||||||||
| Liberty Media Corp.-Liberty Formula One, Cl. C* | 14,812 | 524,937 | ||||||
| Roku, Inc., Cl. A* | 7,533 | 1,166,787 | ||||||
| 1,691,724 | ||||||||
| PHARMACEUTICALS—1.1% | ||||||||
| GW Pharmaceuticals PLC#,* | 5,145 | 656,657 | ||||||
| Horizon Therapeutics PLC* | 6,986 | 427,473 | ||||||
| 1,084,130 | ||||||||
| PROPERTY & CASUALTY INSURANCE—0.5% | ||||||||
| The Progressive Corp. | 5,941 | 536,710 | ||||||
| REAL ESTATE SERVICES—0.9% | ||||||||
| FirstService Corp. | 7,187 | 859,206 | ||||||
| REGIONAL BANKS—0.4% | ||||||||
| SVB Financial Group* | 1,984 | 444,952 | ||||||
| RESEARCH & CONSULTING SERVICES—2.1% | ||||||||
| CoStar Group, Inc.* | 1,005 | 854,009 | ||||||
| Verisk Analytics, Inc., Cl. A | 6,849 | 1,292,475 | ||||||
| 2,146,484 | ||||||||
| RESTAURANTS—1.8% | ||||||||
| Chipotle Mexican Grill, Inc., Cl. A* | 1,145 | 1,322,658 | ||||||
| Shake Shack, Inc., Cl. A* | 9,444 | 458,506 | ||||||
| 1,781,164 | ||||||||
| SEMICONDUCTOR EQUIPMENT—2.8% | ||||||||
| Lam Research Corp. | 4,459 | 1,681,756 | ||||||
| SolarEdge Technologies, Inc.* | 6,225 | 1,089,998 | ||||||
| 2,771,754 | ||||||||
| SEMICONDUCTORS—5.4% | ||||||||
| Advanced Micro Devices, Inc.* | 45,273 | 3,505,488 | ||||||
| Inphi Corp.* | 5,821 | 760,572 | ||||||
| Universal Display Corp. | 6,919 | 1,207,020 | ||||||
| 5,473,080 | ||||||||
| SYSTEMS SOFTWARE—3.0% | ||||||||
| Crowdstrike Holdings, Inc., Cl. A* | 15,042 | 1,702,755 | ||||||
| Palo Alto Networks, Inc.* | 5,145 | 1,316,708 | ||||||
| 3,019,463 | ||||||||
| TRUCKING—0.5% | ||||||||
| Old Dominion Freight Line, Inc. | 2,944 | 538,222 | ||||||
| TOTAL COMMON STOCKS (Cost $65,883,622) | 94,619,886 | |||||||
| PREFERRED STOCKS—0.4% | SHARES | VALUE | ||||||
| APPLICATION SOFTWARE—0.3% | ||||||||
| Palantir Technologies, Inc., Cl. B*,@,(a) | 50,675 | 291,381 | ||||||
- 11 -
THE ALGER INSTITUTIONAL FUNDS | ALGER MID CAP GROWTH INSTITUTIONAL FUND
Schedule of Investments July 31, 2020 (Unaudited) (Continued)
| PREFERRED STOCKS—0.4% (CONT.) | SHARES | VALUE | ||||||
| BIOTECHNOLOGY—0.1% | ||||||||
| Prosetta Biosciences, Inc., Series D*,@,(a),(b) | 166,009 | $ | 131,147 | |||||
| TOTAL
PREFERRED STOCKS (Cost $1,081,669) | 422,528 | |||||||
| WARRANTS—0.8% | SHARES | VALUE | ||||||
| BIOTECHNOLOGY—0.8% | ||||||||
| Forte Biosciences, Inc., 2/20/21*,@ | 95,530 | 791,562 | ||||||
| (Cost $0) | 791,562 | |||||||
| RIGHTS—1.3% | SHARES | VALUE | ||||||
| BIOTECHNOLOGY—1.3% | ||||||||
| BioNTech Pharmaceuticals Ltd.* | 2,307 | – | ||||||
| Tolero CDR*,@,(a),(c) | 422,928 | 1,311,077 | ||||||
| 1,311,077 | ||||||||
| TOTAL RIGHTS (Cost $226,186) | 1,311,077 | |||||||
| REAL ESTATE INVESTMENT TRUST—2.6% | SHARES | VALUE | ||||||
| INDUSTRIAL—0.7% | ||||||||
| Rexford Industrial Realty, Inc. | 14,547 | 682,691 | ||||||
| RESIDENTIAL—0.7% | ||||||||
| Equity LifeStyle Properties, Inc. | 9,785 | 668,511 | ||||||
| SPECIALIZED—1.2% | ||||||||
| Crown Castle International Corp. | 7,697 | 1,283,090 | ||||||
| TOTAL REAL ESTATE INVESTMENT TRUST | ||||||||
| (Cost $2,040,858) | 2,634,292 | |||||||
| Total Investments | ||||||||
| (Cost $69,232,335) | 99.3 | % | $ | 99,779,345 | ||||
| Affiliated Securities (Cost $747,040) | 131,147 | |||||||
| Unaffiliated Securities (Cost $68,485,295) | 99,648,198 | |||||||
| Other Assets in Excess of Liabilities | 0.7 | % | 685,760 | |||||
| NET ASSETS | 100.0 | % | $ | 100,465,105 | ||||
| # | 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. |
- 12 -
THE ALGER INSTITUTIONAL FUNDS | ALGER MID CAP GROWTH INSTITUTIONAL FUND
Schedule of Investments July 31, 2020 (Unaudited) (Continued)
| % 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 | % | $ | 791,562 | 0.79 | % | |||||||||||
| Palantir Technologies, Inc., Cl. A | 10/7/14 | 80,856 | 0.05 | % | 71,450 | 0.07 | % | |||||||||||||
| Palantir Technologies, Inc., Cl. B | 10/7/14 | 334,629 | 0.22 | % | 291,381 | 0.29 | % | |||||||||||||
| Prosetta Biosciences, Inc., Series D | 2/6/15 | 747,040 | 0.50 | % | 131,147 | 0.13 | % | |||||||||||||
| Tolero CDR | 2/6/17 | 226,186 | 0.23 | % | 1,311,077 | 1.31 | % | |||||||||||||
| Total | $ | 2,596,617 | 2.59 | % | ||||||||||||||||
See Notes to Financial Statements.
- 13 -
THE ALGER INSTITUTIONAL FUNDS | ALGER SMALL CAP GROWTH INSTITUTIONAL FUND
Schedule of Investments July 31, 2020 (Unaudited)
| COMMON STOCKS—93.0% | SHARES | VALUE | ||||||
| AEROSPACE & DEFENSE—1.4% | ||||||||
| Hexcel Corp. | 13,217 | $ | 492,994 | |||||
| Mercury Systems, Inc.* | 35,662 | 2,761,309 | ||||||
| 3,254,303 | ||||||||
| ALTERNATIVE CARRIERS—1.2% | ||||||||
| Bandwidth, Inc., Cl. A* | 19,255 | 2,787,739 | ||||||
| APPAREL RETAIL—1.0% | ||||||||
| Burlington Stores, Inc.* | 12,592 | 2,367,296 | ||||||
| APPLICATION SOFTWARE—21.5% | ||||||||
| ACI Worldwide, Inc.* | 117,982 | 3,160,738 | ||||||
| Avalara, Inc.* | 56,021 | 7,532,024 | ||||||
| Benefitfocus, Inc.* | 61,531 | 720,528 | ||||||
| Bill.com Holdings, Inc.* | 18,468 | 1,719,555 | ||||||
| Blackbaud, Inc. | 36,633 | 2,291,028 | ||||||
| Blackline, Inc.* | 21,481 | 1,909,876 | ||||||
| Coupa Software, Inc.* | 12,358 | 3,787,109 | ||||||
| Everbridge, Inc.* | 32,572 | 4,651,283 | ||||||
| Guidewire Software, Inc.* | 22,287 | 2,622,288 | ||||||
| HubSpot, Inc.* | 20,986 | 4,923,526 | ||||||
| Manhattan Associates, Inc.* | 24,618 | 2,358,158 | ||||||
| Medallia, Inc.* | 19,199 | 589,985 | ||||||
| Paycom Software, Inc.* | 13,528 | 3,846,957 | ||||||
| Q2 Holdings, Inc.* | 42,423 | 3,989,883 | ||||||
| Smartsheet, Inc., Cl. A* | 32,833 | 1,567,447 | ||||||
| SPS Commerce, Inc.* | 34,210 | 2,571,566 | ||||||
| Tyler Technologies, Inc.* | 8,580 | 3,065,205 | ||||||
| Vertex, Inc., Cl. A* | 21,568 | 508,142 | ||||||
| 51,815,298 | ||||||||
| ASSET MANAGEMENT & CUSTODY BANKS—0.7% | ||||||||
| Affiliated Managers Group, Inc. | 8,682 | 597,235 | ||||||
| WisdomTree Investments, Inc. | 319,797 | 1,151,269 | ||||||
| 1,748,504 | ||||||||
| BIOTECHNOLOGY—3.7% | ||||||||
| BioNTech SE#,* | 8,577 | 704,257 | ||||||
| CareDx, Inc.* | 121,156 | 4,040,554 | ||||||
| Exact Sciences Corp.* | 17,131 | 1,623,162 | ||||||
| Moderna, Inc.* | 26,741 | 1,981,508 | ||||||
| Turning Point Therapeutics, Inc.* | 8,954 | 530,345 | ||||||
| 8,879,826 | ||||||||
| CASINOS & GAMING—2.2% | ||||||||
| DraftKings, Inc., Cl. A* | 108,975 | 3,637,040 | ||||||
| Penn National Gaming, Inc.* | 46,315 | 1,567,763 | ||||||
| 5,204,803 | ||||||||
| DIVERSIFIED SUPPORT SERVICES—0.4% | ||||||||
| IAA, Inc.* | 22,506 | 975,635 | ||||||
| ELECTRICAL COMPONENTS & EQUIPMENT—1.2% | ||||||||
| Sunrun, Inc.* | 75,312 | 2,763,197 | ||||||
- 14 -
THE ALGER INSTITUTIONAL FUNDS | ALGER SMALL CAP GROWTH INSTITUTIONAL FUND
Schedule of Investments July 31, 2020 (Unaudited) (Continued)
| COMMON STOCKS—93.0% (CONT.) | SHARES | VALUE | ||||||
| ELECTRONIC COMPONENTS—0.7% | ||||||||
| Dolby Laboratories, Inc., Cl. A | 24,082 | $ | 1,676,107 | |||||
| ELECTRONIC EQUIPMENT & INSTRUMENTS—1.5% | ||||||||
| Cognex Corp. | 54,725 | 3,659,461 | ||||||
| FINANCIAL EXCHANGES & DATA—0.8% | ||||||||
| Tradeweb Markets, Inc., Cl. A | 33,414 | 1,806,695 | ||||||
| FOOD DISTRIBUTORS—0.5% | ||||||||
| The Chefs’ Warehouse, Inc.* | 30,855 | 355,758 | ||||||
| US Foods Holding Corp.* | 39,179 | 795,334 | ||||||
| 1,151,092 | ||||||||
| GENERAL MERCHANDISE STORES—0.7% | ||||||||
| Ollie’s Bargain Outlet Holdings, Inc.* | 16,724 | 1,757,692 | ||||||
| HEALTHCARE EQUIPMENT—13.3% | ||||||||
| ABIOMED, Inc.* | 13,706 | 4,110,978 | ||||||
| Cantel Medical Corp. | 67,713 | 3,199,439 | ||||||
| CryoPort, Inc.* | 62,185 | 2,060,811 | ||||||
| DexCom, Inc.* | 16,556 | 7,210,800 | ||||||
| Inmode Ltd.* | 15,865 | 513,391 | ||||||
| Inogen, Inc.* | 23,554 | 723,108 | ||||||
| Insulet Corp.* | 35,418 | 7,202,604 | ||||||
| Mesa Laboratories, Inc. | 4,857 | 1,150,818 | ||||||
| Tandem Diabetes Care, Inc.* | 55,845 | 5,833,569 | ||||||
| 32,005,518 | ||||||||
| HEALTHCARE SERVICES—1.8% | ||||||||
| 1Life Healthcare, Inc.* | 10,326 | 305,753 | ||||||
| Guardant Health, Inc.* | 32,133 | 2,737,088 | ||||||
| Progenity, Inc.* | 127,824 | 1,164,477 | ||||||
| 4,207,318 | ||||||||
| HEALTHCARE SUPPLIES—6.9% | ||||||||
| Neogen Corp.* | 66,840 | 5,131,307 | ||||||
| Quidel Corp.*,(a) | 40,395 | 11,410,375 | ||||||
| 16,541,682 | ||||||||
| HEALTHCARE TECHNOLOGY—8.2% | ||||||||
| Livongo Health, Inc.* | 9,768 | 1,242,978 | ||||||
| Teladoc Health, Inc.* | 21,671 | 5,149,680 | ||||||
| Veeva Systems, Inc., Cl. A* | 36,927 | 9,769,776 | ||||||
| Vocera Communications, Inc.* | 110,061 | 3,386,577 | ||||||
| 19,549,011 | ||||||||
| HOMEFURNISHING RETAIL—0.4% | ||||||||
| Bed Bath & Beyond, Inc. | 84,961 | 919,278 | ||||||
| HYPERMARKETS & SUPER CENTERS—1.3% | ||||||||
| BJ’s Wholesale Club Holdings, Inc.* | 76,363 | 3,058,338 | ||||||
| INSURANCE BROKERS—0.4% | ||||||||
| eHealth, Inc.* | 12,288 | 849,592 | ||||||
| INTERACTIVE HOME ENTERTAINMENT—0.6% | ||||||||
| Take-Two Interactive Software, Inc.* | 8,644 | 1,417,789 | ||||||
- 15 -
THE ALGER INSTITUTIONAL FUNDS | ALGER SMALL CAP GROWTH INSTITUTIONAL FUND
Schedule of Investments July 31, 2020 (Unaudited) (Continued)
| COMMON STOCKS—93.0% (CONT.) | SHARES | VALUE | ||||||
| INTERACTIVE MEDIA & SERVICES—0.2% | ||||||||
| Eventbrite, Inc., Cl. A* | 45,856 | $ | 390,693 | |||||
| INTERNET & DIRECT MARKETING RETAIL—1.7% | ||||||||
| Farfetch Ltd., Cl. A* | 41,752 | 1,070,104 | ||||||
| Fiverr International Ltd.* | 31,458 | 2,939,121 | ||||||
| 4,009,225 | ||||||||
| INTERNET SERVICES & INFRASTRUCTURE—3.1% | ||||||||
| Shopify, Inc., Cl. A* | 7,220 | 7,393,280 | ||||||
| LEISURE FACILITIES—0.6% | ||||||||
| Planet Fitness, Inc., Cl. A* | 28,044 | 1,463,897 | ||||||
| LIFE SCIENCES TOOLS & SERVICES—7.6% | ||||||||
| Bio-Techne Corp. | 25,728 | 7,079,317 | ||||||
| NanoString Technologies, Inc.* | 88,251 | 3,186,744 | ||||||
| NeoGenomics, Inc.* | 75,749 | 2,895,884 | ||||||
| PRA Health Sciences, Inc.* | 22,861 | 2,436,068 | ||||||
| Repligen Corp.* | 16,944 | 2,557,019 | ||||||
| 18,155,032 | ||||||||
| MANAGED HEALTHCARE—0.7% | ||||||||
| HealthEquity, Inc.* | 30,447 | 1,569,847 | ||||||
| MOVIES & ENTERTAINMENT—0.7% | ||||||||
| Live Nation Entertainment, Inc.* | 37,079 | 1,735,668 | ||||||
| OIL & GAS EXPLORATION & PRODUCTION—0.6% | ||||||||
| Magnolia Oil & Gas Corp., Cl. A* | 244,764 | 1,463,689 | ||||||
| PHARMACEUTICALS—0.1% | ||||||||
| Aerie Pharmaceuticals, Inc.* | 29,613 | 342,326 | ||||||
| REGIONAL BANKS—0.4% | ||||||||
| Webster Financial Corp. | 33,629 | 917,063 | ||||||
| RESTAURANTS—1.7% | ||||||||
| Shake Shack, Inc., Cl. A* | 24,917 | 1,209,720 | ||||||
| Wingstop, Inc. | 18,917 | 2,955,782 | ||||||
| 4,165,502 | ||||||||
| SEMICONDUCTOR EQUIPMENT—0.5% | ||||||||
| SolarEdge Technologies, Inc.* | 7,004 | 1,226,400 | ||||||
| SEMICONDUCTORS—1.1% | ||||||||
| Universal Display Corp. | 15,150 | 2,642,918 | ||||||
| SPECIALTY CHEMICALS—1.4% | ||||||||
| Balchem Corp. | 33,670 | 3,375,754 | ||||||
| SPECIALTY STORES—0.8% | ||||||||
| Five Below, Inc.* | 8,857 | 964,616 | ||||||
| Sportsman’s Warehouse Holdings, Inc.* | 65,887 | 1,060,122 | ||||||
| 2,024,738 | ||||||||
| SYSTEMS SOFTWARE—1.4% | ||||||||
| Proofpoint, Inc.* | 29,472 | 3,409,026 | ||||||
| TOTAL COMMON STOCKS (Cost $108,869,482) | 222,681,232 | |||||||
- 16 -
THE ALGER INSTITUTIONAL FUNDS | ALGER SMALL CAP GROWTH INSTITUTIONAL FUND
Schedule of Investments July 31, 2020 (Unaudited) (Continued)
| PREFERRED STOCKS—0.0% | SHARES | VALUE | ||||||
| BIOTECHNOLOGY—0.0% | ||||||||
| Prosetta Biosciences, Inc., Series D*,@,(b),(c) | 133,263 | $ | 105,278 | |||||
| (Cost $599,684) | 105,278 | |||||||
| RIGHTS—0.7% | SHARES | VALUE | ||||||
| BIOTECHNOLOGY—0.7% | ||||||||
| BioNTech Pharmaceuticals Ltd.* | 8,577 | – | ||||||
| Tolero CDR*,@,(c),(d) | 528,559 | 1,638,533 | ||||||
| 1,638,533 | ||||||||
| TOTAL RIGHTS (Cost $285,725) | 1,638,533 | |||||||
| REAL ESTATE INVESTMENT TRUST—2.5% | SHARES | VALUE | ||||||
| SPECIALIZED—2.5% | ||||||||
| Digital Realty Trust, Inc. | 37,867 | 6,079,168 | ||||||
| (Cost $4,834,480) | 6,079,168 | |||||||
| Total Investments (Cost $114,589,371) | 96.2 | % | $ | 230,504,211 | ||||
| Affiliated Securities (Cost $599,684) | 105,278 | |||||||
| Unaffiliated Securities (Cost $113,989,687) | 230,398,933 | |||||||
| Other Assets in Excess of Liabilities | 3.8 | % | 9,097,630 | |||||
| NET ASSETS | 100.0 | % | $ | 239,601,841 | ||||
| # | American Depositary Receipts. |
| (a) | All or a portion of this security is segregated as collateral for repayment of the payable for interfund loans in accordance with the terms and conditions of the application and order of exemption that was granted by the Securities and Exchange Commission dated August 11, 2009. |
| (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) | Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the Board. |
| (d) | 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 | $ | 599,684 | 0.10 | % | $ | 105,278 | 0.04 | % | |||||||||||
| Tolero CDR | 2/6/17 | 285,725 | 0.16 | % | 1,638,533 | 0.68 | % | |||||||||||||
| Total | $ | 1,743,811 | 0.72 | % | ||||||||||||||||
See Notes to Financial Statements.
- 17 -
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1 — General:
The Alger Institutional 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 four series — Alger Capital Appreciation Institutional Fund, Alger Focus Equity Fund, Alger Mid Cap Growth Institutional Fund and Alger Small Cap Growth Institutional 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, C, I, R, Y, Z and Z-2. Class A shares are generally subject to an initial sales charge while Class C shares are generally subject to a deferred sales charge. Class I, R, Y, Z and Z-2 shares are sold to institutional investors without an initial or deferred sales charge. 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 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. 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 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.
- 18 -
THE ALGER INSTITUTIONAL FUNDS
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) |
- 19 -
THE ALGER INSTITUTIONAL FUNDS
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, 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.
- 20 -
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| Alger Capital Appreciation Institutional Fund | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
| COMMON STOCKS | ||||||||||||||||
| Communication Services | $ | 513,166,773 | $ | 484,603,938 | $ | 28,562,835 | $ | — | ||||||||
| Consumer Discretionary | 751,032,996 | 731,181,122 | 12,251,697 | 7,600,177 | ||||||||||||
| Consumer Staples | 11,345,045 | 11,345,045 | — | — | ||||||||||||
| Financials | 152,927,779 | 152,927,779 | — | — | ||||||||||||
| Healthcare | 431,597,240 | 431,597,240 | — | — | ||||||||||||
| Industrials | 133,067,988 | 129,080,451 | 3,987,537 | — | ||||||||||||
| Information Technology | 1,604,926,122 | 1,603,551,699 | — | 1,374,423 | ||||||||||||
| Materials | 93,958,506 | 93,958,506 | — | — | ||||||||||||
| TOTAL COMMON STOCKS | $ | 3,692,022,449 | $ | 3,638,245,780 | $ | 44,802,069 | $ | 8,974,600 | ||||||||
| PREFERRED STOCKS | ||||||||||||||||
| Information Technology | 6,335,626 | — | — | 6,335,626 | ||||||||||||
| REAL ESTATE INVESTMENT TRUST | ||||||||||||||||
| Real Estate | 43,347,501 | 43,347,501 | — | — | ||||||||||||
| TOTAL INVESTMENTS IN SECURITIES | $ | 3,741,705,576 | $ | 3,681,593,281 | $ | 44,802,069 | $ | 15,310,226 | ||||||||
| Alger Focus Equity Fund | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
| COMMON STOCKS | ||||||||||||||||
| Communication Services | $ | 130,981,553 | $ | 130,981,553 | $ | — | $ | — | ||||||||
| Consumer Discretionary | 197,585,062 | 197,585,062 | — | — | ||||||||||||
| Consumer Staples | 3,622,961 | 3,622,961 | — | — | ||||||||||||
| Financials | 35,992,774 | 35,992,774 | — | — | ||||||||||||
| Healthcare | 120,619,822 | 120,619,822 | — | — | ||||||||||||
| Industrials | 31,123,069 | 31,123,069 | — | — | ||||||||||||
| Information Technology | 448,430,287 | 448,430,287 | — | — | ||||||||||||
| Materials | 25,782,177 | 25,782,177 | — | — | ||||||||||||
| TOTAL COMMON STOCKS | $ | 994,137,705 | $ | 994,137,705 | $ | — | $ | — | ||||||||
| PREFERRED STOCKS | ||||||||||||||||
| Healthcare | 60,692 | — | — | 60,692 | ||||||||||||
| REAL ESTATE INVESTMENT TRUST | ||||||||||||||||
| Real Estate | 19,332,699 | 19,332,699 | — | — | ||||||||||||
| TOTAL INVESTMENTS IN SECURITIES | $ | 1,013,531,096 | $ | 1,013,470,404 | $ | — | $ | 60,692 | ||||||||
| Alger Mid Cap Growth Institutional Fund | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
| COMMON STOCKS | ||||||||||||||||
| Communication Services | $ | 4,931,071 | $ | 4,931,071 | $ | — | $ | — | ||||||||
| Consumer Discretionary | 16,733,283 | 16,733,283 | — | — | ||||||||||||
| Consumer Staples | 1,933,798 | 1,933,798 | — | — | ||||||||||||
| Financials | 1,924,417 | 1,924,417 | — | — | ||||||||||||
| Healthcare | 23,884,866 | 22,879,988 | 1,004,878 | — | ||||||||||||
| Industrials | 10,198,183 | 10,198,183 | — | — | ||||||||||||
| Information Technology | 33,283,209 | 33,211,759 | — | 71,450 | ||||||||||||
| Materials | 871,853 | 871,853 | — | — | ||||||||||||
| Real Estate | 859,206 | 859,206 | — | — | ||||||||||||
| TOTAL COMMON STOCKS | $ | 94,619,886 | $ | 93,543,558 | $ | 1,004,878 | $ | 71,450 | ||||||||
- 21 -
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| Alger Mid Cap Growth Institutional Fund | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
| PREFERRED STOCKS | ||||||||||||||||
| Healthcare | $ | 131,147 | $ | — | $ | — | $ | 131,147 | ||||||||
| Information Technology | 291,381 | — | — | 291,381 | ||||||||||||
| TOTAL PREFERRED STOCKS | $ | 422,528 | $ | — | $ | — | $ | 422,528 | ||||||||
| WARRANTS | ||||||||||||||||
| Healthcare | 791,562 | — | 791,562 | — | ||||||||||||
| RIGHTS | ||||||||||||||||
| Healthcare | 1,311,077 | — | — | * | 1,311,077 | |||||||||||
| REAL ESTATE INVESTMENT TRUST | ||||||||||||||||
| Real Estate | 2,634,292 | 2,634,292 | — | — | ||||||||||||
| TOTAL INVESTMENTS IN SECURITIES | $ | 99,779,345 | $ | 96,177,850 | $ | 1,796,440 | $ | 1,805,055 | ||||||||
| Alger Small Cap Growth Institutional Fund | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
| COMMON STOCKS | ||||||||||||||||
| Communication Services | $ | 6,331,889 | $ | 6,331,889 | $ | — | $ | — | ||||||||
| Consumer Discretionary | 21,912,431 | 21,912,431 | — | — | ||||||||||||
| Consumer Staples | 4,209,430 | 4,209,430 | — | — | ||||||||||||
| Energy | 1,463,689 | 1,463,689 | — | — | ||||||||||||
| Financials | 5,321,854 | 5,321,854 | — | — | ||||||||||||
| Healthcare | 101,250,560 | 101,250,560 | — | — | ||||||||||||
| Industrials | 6,993,135 | 6,993,135 | — | — | ||||||||||||
| Information Technology | 71,822,490 | 71,822,490 | — | — | ||||||||||||
| Materials | 3,375,754 | 3,375,754 | — | — | ||||||||||||
| TOTAL COMMON STOCKS | $ | 222,681,232 | $ | 222,681,232 | $ | — | $ | — | ||||||||
| PREFERRED STOCKS | ||||||||||||||||
| Healthcare | 105,278 | — | — | 105,278 | ||||||||||||
| RIGHTS | ||||||||||||||||
| Healthcare | 1,638,533 | — | — | * | 1,638,533 | |||||||||||
| REAL ESTATE INVESTMENT TRUST | ||||||||||||||||
| Real Estate | 6,079,168 | 6,079,168 | — | — | ||||||||||||
| TOTAL INVESTMENTS IN SECURITIES | $ | 230,504,211 | $ | 228,760,400 | $ | — | $ | 1,743,811 | ||||||||
* Alger Mid Cap Growth Institutional Fund’s and Alger Small Cap Growth Institutional 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.
- 22 -
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| FAIR VALUE | ||||
| MEASUREMENTS | ||||
| USING SIGNIFICANT | ||||
| UNOBSERVABLE | ||||
| INPUTS (LEVEL 3) | ||||
| Alger Capital Appreciation Institutional Fund | Common Stocks | |||
| Opening balance at November 1, 2019 | $ | 8,128,232 | ||
| 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 | 846,368 | |||
| Purchases and sales | ||||
| Purchases | — | |||
| Sales | — | |||
| Closing balance at July 31, 2020 | 8,974,600 | |||
| Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2020 | 846,368 | |||
| Alger Capital Appreciation Institutional Fund | Preferred Stocks | |||
| Opening balance at November 1, 2019 | $ | 6,335,626 | ||
| 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 | 6,335,626 | |||
| Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2020 | — | |||
- 23 -
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| FAIR VALUE | ||||
| MEASUREMENTS | ||||
| USING SIGNIFICANT | ||||
| UNOBSERVABLE | ||||
| INPUTS (LEVEL 3) | ||||
| Alger Focus Equity Fund | Preferred Stocks | |||
| Opening balance at November 1, 2019 | $ | 81,434 | ||
| 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 | (20,742 | ) | ||
| Purchases and sales | ||||
| Purchases | — | |||
| Sales | — | |||
| Closing balance at July 31, 2020 | 60,692 | |||
| Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2020 | (20,742 | ) | ||
| FAIR VALUE | ||||
| MEASUREMENTS | ||||
| USING SIGNIFICANT | ||||
| UNOBSERVABLE | ||||
| INPUTS (LEVEL 3) | ||||
| Alger Mid Cap Growth Institutional Fund | Common Stocks | |||
| Opening balance at November 1, 2019 | $ | 71,450 | ||
| 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 | 71,450 | |||
| Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2020 | — | |||
- 24 -
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| FAIR VALUE | ||||
| MEASUREMENTS | ||||
| USING SIGNIFICANT | ||||
| UNOBSERVABLE | ||||
| INPUTS (LEVEL 3) | ||||
| Alger Mid Cap Growth Institutional Fund | Preferred Stocks | |||
| Opening balance at November 1, 2019 | $ | 467,351 | ||
| 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 | (44,823 | ) | ||
| Purchases and sales | ||||
| Purchases | — | |||
| Sales | — | |||
| Closing balance at July 31, 2020 | 422,528 | |||
| Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2020 | (44,823 | ) | ||
| Alger Mid Cap Growth Institutional Fund | Rights | |||
| Opening balance at November 1, 2019 | $ | 1,366,057 | ||
| 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 | (54,980 | ) | ||
| Purchases and sales | ||||
| Purchases | — | |||
| Sales | — | |||
| Closing balance at July 31, 2020 | 1,311,077 | |||
| Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2020 | (54,980 | ) | ||
- 25 -
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| FAIR VALUE | ||||
| MEASUREMENTS | ||||
| USING SIGNIFICANT | ||||
| UNOBSERVABLE | ||||
| INPUTS (LEVEL 3) | ||||
| Alger Small Cap Growth Institutional Fund | Preferred Stocks | |||
| Opening balance at November 1, 2019 | $ | 141,259 | ||
| 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 | (35,981 | ) | ||
| Purchases and sales | ||||
| Purchases | — | |||
| Sales | — | |||
| Closing balance at July 31, 2020 | 105,278 | |||
| Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2020 | (35,981 | ) | ||
| Alger Small Cap Growth Institutional Fund | Rights | |||
| Opening balance at November 1, 2019 | $ | 1,707,246 | ||
| 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 | (68,713 | ) | ||
| Purchases and sales | ||||
| Purchases | — | |||
| Sales | — | |||
| Closing balance at July 31, 2020 | 1,638,533 | |||
| Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2020 | (68,713 | ) | ||
The following table provides quantitative information about each 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.
- 26 -
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
| Fair Value | Valuation | Unobservable | Weighted Average | |||||||||
| July 31, 2020 | Methodology | Input | Input/Range | Inputs | ||||||||
| Alger Capital Appreciation Institutional Fund | ||||||||||||
| Common Stocks | $ | 7,600,177 | Income | Discount Rate | 1.0%-5.0% | N/A | ||||||
| Approach | ||||||||||||
| Common Stocks | 1,374,423 | Market | Transaction Price | N/A | N/A | |||||||
| Approach | ||||||||||||
| Preferred Stocks | 6,335,626 | Market | Transaction Price | N/A | N/A | |||||||
| Approach | ||||||||||||
| Alger Focus Equity Fund | ||||||||||||
| Preferred Stocks | $ | 60,692 | Income | Discount Rate | 55.00%-60.00% | N/A | ||||||
| Approach | ||||||||||||
| Alger Mid Cap Growth Institutional Fund | ||||||||||||
| Common Stocks | $ | 71,450 | Market | Transaction Price | N/A | N/A | ||||||
| Approach | ||||||||||||
| Preferred Stocks | 131,147 | Income | Discount Rate | 55.00%-60.00% | N/A | |||||||
| Approach | ||||||||||||
| Preferred Stocks | 291,381 | Market | Transaction Price | N/A | N/A | |||||||
| Approach | ||||||||||||
| Rights | 1,311,077 | Income | Discount Rate | 4.24%-5.10% | N/A | |||||||
| Approach | ||||||||||||
| Alger Small Cap Growth Institutional Fund | ||||||||||||
| Preferred Stocks | $ | 105,278 | Income | Discount Rate | 55.00%-60.00% | N/A | ||||||
| Approach | ||||||||||||
| Rights | 1,638,533 | Income | Discount Rate | 4.24%-5.10% | N/A | |||||||
| Approach | ||||||||||||
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.
- 27 -
THE ALGER INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
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:
| TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | |||||||||||||
| Cash, Foreign Cash and Cash Equivalents: | ||||||||||||||||
| Alger Capital Appreciation Institutional Fund | $ | 1,520,369 | $ | – | $ | 1,520,369 | $ | – | ||||||||
| Alger Focus Equity Fund | – | – | – | – | ||||||||||||
| Bank overdraft | (432,446 | ) | – | (432,446 | ) | – | ||||||||||
| Alger Mid Cap Growth Institutional Fund | 801,454 | – | 801,454 | – | ||||||||||||
| Alger Small Cap Growth Institutional Fund | 9,805,005 | – | 9,805,005 | – | ||||||||||||
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 purchase call options to increase their exposure to the stock market and also provide diversification of risk. The Funds 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.
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.
- 28 -
THE ALGER INSTITUTIONAL FUNDS
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, 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 Focus Equity Fund | ||||||||||||||||||||||||||||||||
| Preferred Stocks | ||||||||||||||||||||||||||||||||
| Prosetta Biosciences, | ||||||||||||||||||||||||||||||||
| Inc., Series D | 76,825 | – | – | 76,825 | $ | – | $ | – | $ | (20,742 | ) | $ | 60,692 | |||||||||||||||||||
| Total | $ | – | $ | – | $ | (20,742 | ) | $ | 60,692 | |||||||||||||||||||||||
| 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 Institutional Fund | ||||||||||||||||||||||||||||||||
| Preferred Stocks | ||||||||||||||||||||||||||||||||
| Prosetta Biosciences, | ||||||||||||||||||||||||||||||||
| Inc., Series D | 166,009 | – | – | 166,009 | $ | – | $ | – | $ | (44,823 | ) | $ | 131,147 | |||||||||||||||||||
| Total | $ | – | $ | – | $ | (44,823 | ) | $ | 131,147 | |||||||||||||||||||||||
| 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 Institutional Fund | ||||||||||||||||||||||||||||||||
| Preferred Stocks | ||||||||||||||||||||||||||||||||
| Prosetta Biosciences, | ||||||||||||||||||||||||||||||||
| Inc., Series D | 133,263 | – | – | 133,263 | $ | – | $ | – | $ | (35,981 | ) | $ | 105,278 | |||||||||||||||||||
| Total | $ | – | $ | – | $ | (35,981 | ) | $ | 105,278 | |||||||||||||||||||||||
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