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Form N-Q ALGER INSTITUTIONAL FUND For: Jul 31

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September 24, 2018 11:29 AM EDT

 

 

 

OMB APPROVAL

 

 

OMB Number:

3235-0578

 

 

Expires:

March 31, 2019

 

UNITED STATES

Estimated average burden hours per response . . . . . . . . . . 10.5

 

SECURITIES AND EXCHANGE COMMISSION

 

 

Washington, D.C. 20549

 

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number

811-7986

 

The Alger Institutional Funds

(Exact name of registrant as specified in charter)

 

360 Park Avenue South New York, New York

 

10010

(Address of principal executive offices)

 

(Zip code)

 

Mr. Hal Liebes

Fred Alger Management, Inc.

360 Park Avenue South

New York, New York 10010

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

212-806-8800

 

 

Date of fiscal year end:

October 31

 

 

Date of reporting period:

July 31, 2018

 

 

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5).  The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

 

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public.  A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number.  Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609.  The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 


 

ITEM 1. Schedule of Investments.

 


 

THE ALGER INSTITUTIONAL FUNDS |

ALGER CAPITAL APPRECIATION INSTITUTIONAL FUND

Schedule of Investments July 31, 2018 (Unaudited)

 

 

 

SHARES

 

VALUE

 

COMMON STOCKS—94.0%

 

 

 

 

 

AEROSPACE & DEFENSE—2.7%

 

 

 

 

 

The Boeing Co.

 

220,182

 

$

78,450,847

 

United Technologies Corp.

 

169,373

 

22,990,691

 

 

 

 

 

101,441,538

 

AIR FREIGHT & LOGISTICS—0.0%

 

 

 

 

 

XPO Logistics, Inc.*

 

16,506

 

1,645,978

 

APPAREL ACCESSORIES & LUXURY GOODS—0.7%

 

 

 

 

 

Adidas AG

 

25,889

 

5,723,647

 

PVH Corp.

 

128,057

 

19,659,310

 

 

 

 

 

25,382,957

 

APPLICATION SOFTWARE—5.9%

 

 

 

 

 

Adobe Systems, Inc.*

 

228,737

 

55,967,369

 

Autodesk, Inc.*

 

293,107

 

37,646,663

 

salesforce.com, Inc.*

 

939,701

 

128,879,992

 

 

 

 

 

222,494,024

 

ASSET MANAGEMENT & CUSTODY BANKS—0.2%

 

 

 

 

 

BlackRock, Inc., Cl. A

 

11,090

 

5,575,608

 

AUTO PARTS & EQUIPMENT—0.3%

 

 

 

 

 

Aptiv PLC.

 

130,357

 

12,784,111

 

BIOTECHNOLOGY—3.2%

 

 

 

 

 

Biogen, Inc.*

 

20,382

 

6,815,129

 

BioMarin Pharmaceutical, Inc.*

 

175,147

 

17,612,782

 

Exact Sciences Corp.*

 

101,323

 

5,922,330

 

Sarepta Therapeutics, Inc.*

 

238,162

 

27,683,951

 

Vertex Pharmaceuticals, Inc.*

 

361,727

 

63,320,311

 

 

 

 

 

121,354,503

 

COMMUNICATIONS EQUIPMENT—0.3%

 

 

 

 

 

Palo Alto Networks, Inc.*

 

46,656

 

9,250,019

 

CONSTRUCTION MATERIALS—1.5%

 

 

 

 

 

Vulcan Materials Co.

 

491,183

 

55,012,496

 

DATA PROCESSING & OUTSOURCED SERVICES—6.1%

 

 

 

 

 

Automatic Data Processing, Inc.

 

69,387

 

9,366,551

 

GreenSky, Inc., Cl. A*

 

68,917

 

1,192,264

 

PayPal Holdings, Inc.*

 

480,553

 

39,472,623

 

Visa, Inc., Cl. A

 

1,295,694

 

177,173,198

 

 

 

 

 

227,204,636

 

DIVERSIFIED BANKS—0.8%

 

 

 

 

 

Bank of America Corp.

 

337,453

 

10,420,549

 

Citigroup, Inc.

 

22,727

 

1,633,844

 

JPMorgan Chase & Co.

 

140,623

 

16,164,614

 

 

 

 

 

28,219,007

 

DIVERSIFIED CHEMICALS—0.5%

 

 

 

 

 

DowDuPont, Inc.

 

265,214

 

18,238,767

 

DIVERSIFIED SUPPORT SERVICES—0.5%

 

 

 

 

 

Cintas Corp.

 

91,608

 

18,732,004

 

 

1


 

 

 

SHARES

 

VALUE

 

COMMON STOCKS—94.0% (CONT.)

 

 

 

 

 

FINANCIAL EXCHANGES & DATA—3.0%

 

 

 

 

 

Intercontinental Exchange, Inc.

 

865,904

 

$

63,998,965

 

S&P Global, Inc.

 

239,496

 

48,004,578

 

 

 

 

 

112,003,543

 

HEALTH CARE EQUIPMENT—4.4%

 

 

 

 

 

Boston Scientific Corp.*

 

1,123,789

 

37,770,548

 

Danaher Corp.

 

534,609

 

54,840,191

 

Intuitive Surgical, Inc.*

 

36,213

 

18,403,085

 

Medtronic PLC.

 

276,992

 

24,992,988

 

Zimmer Biomet Holdings, Inc.

 

233,377

 

29,293,481

 

 

 

 

 

165,300,293

 

HOME ENTERTAINMENT SOFTWARE—0.1%

 

 

 

 

 

Electronic Arts, Inc.*

 

30,200

 

3,888,250

 

HOME IMPROVEMENT RETAIL—3.0%

 

 

 

 

 

The Home Depot, Inc.

 

563,976

 

111,396,540

 

HOTELS RESORTS & CRUISE LINES—0.4%

 

 

 

 

 

Norwegian Cruise Line Holdings Ltd.*

 

329,433

 

16,481,533

 

HYPERMARKETS & SUPER CENTERS—0.0%

 

 

 

 

 

BJ’s Wholesale Club Holdings, Inc.*

 

49,363

 

1,223,709

 

INDUSTRIAL CONGLOMERATES—2.4%

 

 

 

 

 

Honeywell International, Inc.

 

565,052

 

90,210,552

 

INDUSTRIAL GASES—1.0%

 

 

 

 

 

Air Products & Chemicals, Inc.

 

228,386

 

37,494,130

 

INDUSTRIAL MACHINERY—0.8%

 

 

 

 

 

Stanley Black & Decker, Inc.

 

195,836

 

29,271,607

 

INTERNET & DIRECT MARKETING RETAIL—9.8%

 

 

 

 

 

Amazon.com, Inc.*

 

190,117

 

337,921,560

 

Netflix, Inc.*

 

87,271

 

29,449,599

 

 

 

 

 

367,371,159

 

INTERNET SOFTWARE & SERVICES—13.6%

 

 

 

 

 

Alibaba Group Holding Ltd.#*

 

489,258

 

91,603,775

 

Alphabet, Inc., Cl. C*

 

158,275

 

192,661,827

 

Altaba, Inc.*

 

646,772

 

47,505,403

 

Facebook, Inc., Cl. A*

 

1,033,450

 

178,352,801

 

Palantir Technologies, Inc., Cl. A*,@,(a)

 

239,030

 

1,374,423

 

 

 

 

 

511,498,229

 

INVESTMENT BANKING & BROKERAGE—0.5%

 

 

 

 

 

Morgan Stanley

 

395,481

 

19,995,519

 

IT CONSULTING & OTHER SERVICES—0.4%

 

 

 

 

 

Cognizant Technology Solutions Corp., Cl. A

 

198,888

 

16,209,372

 

LEISURE FACILITIES—0.6%

 

 

 

 

 

Vail Resorts, Inc.

 

85,429

 

23,652,727

 

LIFE SCIENCES TOOLS & SERVICES—1.9%

 

 

 

 

 

Illumina, Inc.*

 

113,510

 

36,818,103

 

 

2


 

 

 

SHARES

 

VALUE

 

COMMON STOCKS—94.0% (CONT.)

 

 

 

 

 

LIFE SCIENCES TOOLS & SERVICES—1.9% (CONT.)

 

 

 

 

 

Thermo Fisher Scientific, Inc.

 

154,462

 

$

36,225,973

 

 

 

 

 

73,044,076

 

MANAGED HEALTH CARE—4.5%

 

 

 

 

 

UnitedHealth Group, Inc.

 

667,556

 

169,038,530

 

OIL & GAS EXPLORATION & PRODUCTION—0.7%

 

 

 

 

 

Pioneer Natural Resources Co.

 

140,643

 

26,619,501

 

PHARMACEUTICALS—0.5%

 

 

 

 

 

Allergan PLC.

 

42,134

 

7,756,448

 

Bristol-Myers Squibb Co.

 

117,896

 

6,926,390

 

GW Pharmaceuticals PLC.#*

 

39,653

 

5,355,931

 

 

 

 

 

20,038,769

 

PROPERTY & CASUALTY INSURANCE—0.6%

 

 

 

 

 

The Progressive Corp.

 

401,549

 

24,096,955

 

RAILROADS—2.0%

 

 

 

 

 

Union Pacific Corp.

 

509,015

 

76,296,258

 

RESTAURANTS—1.0%

 

 

 

 

 

McDonald’s Corp.

 

248,089

 

39,083,941

 

SEMICONDUCTOR EQUIPMENT—1.8%

 

 

 

 

 

Applied Materials, Inc.

 

1,420,490

 

69,078,429

 

SEMICONDUCTORS—3.6%

 

 

 

 

 

Broadcom, Inc.

 

309,745

 

68,692,148

 

Marvell Technology Group Ltd.

 

566,693

 

12,076,228

 

Microchip Technology, Inc.

 

150,879

 

14,096,625

 

Micron Technology, Inc.*

 

241,253

 

12,735,746

 

NVIDIA Corp.

 

105,887

 

25,927,491

 

 

 

 

 

133,528,238

 

SPECIALTY CHEMICALS—1.2%

 

 

 

 

 

The Sherwin-Williams Co.

 

103,307

 

45,530,494

 

SYSTEMS SOFTWARE—9.0%

 

 

 

 

 

Microsoft Corp.

 

2,898,717

 

307,495,899

 

Red Hat, Inc.*

 

210,296

 

29,700,104

 

 

 

 

 

337,196,003

 

TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—3.6%

 

 

 

 

 

Apple, Inc.

 

704,175

 

133,997,461

 

TOBACCO—0.3%

 

 

 

 

 

Philip Morris International, Inc.

 

115,743

 

9,988,621

 

TRADING COMPANIES & DISTRIBUTORS—0.2%

 

 

 

 

 

United Rentals, Inc.*

 

50,756

 

7,552,493

 

WIRELESS TELECOMMUNICATION SERVICES—0.4%

 

 

 

 

 

T-Mobile US, Inc.*

 

220,625

 

13,237,500

 

TOTAL COMMON STOCKS

 

 

 

 

 

(Cost $2,356,016,027)

 

 

 

3,531,660,080

 

 

3


 

 

 

SHARES

 

VALUE

 

PREFERRED STOCKS—0.2%

 

 

 

 

 

INTERNET SOFTWARE & SERVICES—0.2%

 

 

 

 

 

Palantir Technologies, Inc., Cl. B*,@,(a)

 

974,841

 

$

5,605,336

 

Palantir Technologies, Inc., Cl. D*,@,(a)

 

127,007

 

730,290

 

 

 

 

 

6,335,626

 

PHARMACEUTICALS—0.0%

 

 

 

 

 

Intarcia Therapeutics, Inc., Series DD*,@,(a)

 

111,655

 

1,320,879

 

TOTAL PREFERRED STOCKS
(Cost $10,892,407)

 

 

 

7,656,505

 

 

 

 

 

 

 

MASTER LIMITED PARTNERSHIP—0.5%

 

 

 

 

 

ASSET MANAGEMENT & CUSTODY BANKS—0.5%

 

 

 

 

 

The Blackstone Group LP.

 

575,527

 

20,097,403

 

(Cost $15,488,361)

 

 

 

20,097,403

 

 

 

 

 

 

 

REAL ESTATE INVESTMENT TRUST—1.8%

 

 

 

 

 

SPECIALIZED—1.8%

 

 

 

 

 

Equinix, Inc.

 

91,604

 

40,239,805

 

SBA Communications Corp., Cl. A*

 

161,895

 

25,619,884

 

 

 

 

 

65,859,689

 

TOTAL REAL ESTATE INVESTMENT TRUST
(Cost $66,025,394)

 

 

 

65,859,689

 

Total Investments
(Cost $2,448,422,189)

 

96.5

%

$

3,625,273,677

 

Unaffiliated Securities (Cost $2,448,422,189)

 

 

 

3,625,273,677

 

Other Assets in Excess of Liabilities

 

3.5

%

130,830,267

 

NET ASSETS

 

100.0

%

$

3,756,103,944

 

 

#                 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. The investment is deemed to not be liquid and may be sold only to qualified buyers.

 

 

 

 

 

 

 

% of net assets

 

 

 

% of net assets

 

 

 

Acquisition

 

Acquisition

 

(Acquisition

 

Market

 

as of

 

Security

 

Date(s)

 

Cost

 

Date)

 

Value 

 

7/31/2018

 

Intarcia Therapeutics, Inc., Series DD

 

03/27/14

 

$

3,616,505

 

0.14

%

$

1,320,879

 

0.03

%

Palantir Technologies, Inc., Cl. A

 

10/07/14

 

1,555,368

 

0.05

%

1,374,423

 

0.04

%

Palantir Technologies, Inc., Cl. B

 

10/07/14

 

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

 

 

 

 

 

 

 

$

9,030,928

 

0.24

%

 

See Notes to Financial Statements.

 

4


 

THE ALGER INSTITUTIONAL FUNDS | ALGER CAPITAL APPRECIATION FOCUS FUND

Schedule of Investments July 31, 2018 (Unaudited)

 

 

 

SHARES

 

VALUE

 

COMMON STOCKS—93.9%

 

 

 

 

 

AEROSPACE & DEFENSE—1.8%

 

 

 

 

 

The Boeing Co.

 

14,063

 

$

5,010,647

 

AIR FREIGHT & LOGISTICS—0.2%

 

 

 

 

 

XPO Logistics, Inc.*

 

5,646

 

563,019

 

APPAREL ACCESSORIES & LUXURY GOODS—0.9%

 

 

 

 

 

PVH Corp.

 

15,358

 

2,357,760

 

APPLICATION SOFTWARE—7.6%

 

 

 

 

 

Adobe Systems, Inc.*

 

18,060

 

4,418,921

 

Autodesk, Inc.*

 

19,115

 

2,455,130

 

Globant SA*

 

43,734

 

2,424,613

 

RealPage, Inc.*

 

25,406

 

1,399,871

 

salesforce.com, Inc.*

 

76,011

 

10,424,909

 

 

 

 

 

21,123,444

 

BIOTECHNOLOGY—2.2%

 

 

 

 

 

Sarepta Therapeutics, Inc.*

 

17,643

 

2,050,822

 

Vertex Pharmaceuticals, Inc.*

 

22,996

 

4,025,450

 

 

 

 

 

6,076,272

 

CONSTRUCTION MATERIALS—1.5%

 

 

 

 

 

Vulcan Materials Co.

 

37,304

 

4,178,048

 

DATA PROCESSING & OUTSOURCED SERVICES—6.7%

 

 

 

 

 

Automatic Data Processing, Inc.

 

18,564

 

2,505,954

 

PayPal Holdings, Inc.*

 

51,047

 

4,193,001

 

Visa, Inc., Cl. A

 

87,676

 

11,988,816

 

 

 

 

 

18,687,771

 

DIVERSIFIED BANKS—0.8%

 

 

 

 

 

Citigroup, Inc.

 

30,098

 

2,163,745

 

DIVERSIFIED CHEMICALS—0.8%

 

 

 

 

 

DowDuPont, Inc.

 

32,420

 

2,229,523

 

DIVERSIFIED SUPPORT SERVICES—0.4%

 

 

 

 

 

Cintas Corp.

 

5,554

 

1,135,682

 

FINANCIAL EXCHANGES & DATA—4.8%

 

 

 

 

 

Intercontinental Exchange, Inc.

 

80,162

 

5,924,774

 

S&P Global, Inc.

 

37,305

 

7,477,414

 

 

 

 

 

13,402,188

 

HEALTH CARE EQUIPMENT—6.5%

 

 

 

 

 

AxoGen, Inc.*

 

41,076

 

1,845,339

 

Boston Scientific Corp.*

 

142,994

 

4,806,029

 

Danaher Corp.

 

63,935

 

6,558,452

 

DexCom, Inc.*

 

16,085

 

1,530,166

 

Tandem Diabetes Care, Inc.*

 

37,022

 

1,020,326

 

Zimmer Biomet Holdings, Inc.

 

18,902

 

2,372,579

 

 

 

 

 

18,132,891

 

HOME IMPROVEMENT RETAIL—2.7%

 

 

 

 

 

The Home Depot, Inc.

 

37,880

 

7,482,058

 

INDUSTRIAL CONGLOMERATES—1.7%

 

 

 

 

 

Honeywell International, Inc.

 

29,125

 

4,649,806

 

 

5


 

 

 

SHARES

 

VALUE

 

COMMON STOCKS—93.9% (CONT.)

 

 

 

 

 

INDUSTRIAL GASES—0.6%

 

 

 

 

 

Air Products & Chemicals, Inc.

 

10,467

 

$

1,718,367

 

INTERNET & DIRECT MARKETING RETAIL—9.0%

 

 

 

 

 

Amazon.com, Inc.*

 

12,677

 

22,532,607

 

Netflix, Inc.*

 

4,796

 

1,618,410

 

Pinduoduo, Inc.#*

 

34,850

 

787,262

 

 

 

 

 

24,938,279

 

INTERNET SOFTWARE & SERVICES—13.9%

 

 

 

 

 

Alibaba Group Holding Ltd.#*

 

58,149

 

10,887,237

 

Alphabet, Inc., Cl. C*

 

11,763

 

14,318,629

 

Facebook, Inc., Cl. A*

 

75,013

 

12,945,744

 

Wix.com Ltd.*

 

4,369

 

415,055

 

 

 

 

 

38,566,665

 

INVESTMENT BANKING & BROKERAGE—0.7%

 

 

 

 

 

Morgan Stanley

 

39,181

 

1,980,991

 

IT CONSULTING & OTHER SERVICES—1.2%

 

 

 

 

 

EPAM Systems, Inc.*

 

25,543

 

3,325,954

 

LEISURE FACILITIES—2.1%

 

 

 

 

 

Vail Resorts, Inc.

 

21,013

 

5,817,869

 

MANAGED HEALTH CARE—4.8%

 

 

 

 

 

UnitedHealth Group, Inc.

 

52,923

 

13,401,162

 

RAILROADS—1.7%

 

 

 

 

 

Union Pacific Corp.

 

32,046

 

4,803,375

 

SEMICONDUCTOR EQUIPMENT—4.2%

 

 

 

 

 

Applied Materials, Inc.

 

241,601

 

11,749,057

 

SEMICONDUCTORS—1.9%

 

 

 

 

 

Broadcom, Inc.

 

24,250

 

5,377,923

 

SPECIALIZED CONSUMER SERVICES—0.8%

 

 

 

 

 

ServiceMaster Global Holdings, Inc.*

 

40,825

 

2,326,617

 

SPECIALTY CHEMICALS—1.0%

 

 

 

 

 

The Sherwin-Williams Co.

 

6,024

 

2,654,958

 

SYSTEMS SOFTWARE—9.7%

 

 

 

 

 

Microsoft Corp.

 

214,031

 

22,704,408

 

Red Hat, Inc.*

 

30,113

 

4,252,859

 

 

 

 

 

26,957,267

 

TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—3.7%

 

 

 

 

 

Apple, Inc.

 

54,718

 

10,412,288

 

TOTAL COMMON STOCKS
(Cost $233,193,102)

 

 

 

261,223,626

 

 

PREFERRED STOCKS—0.1%

 

 

 

 

 

BIOTECHNOLOGY—0.1%

 

 

 

 

 

Prosetta Biosciences, Inc., Series D*,@,(a),(b)

 

76,825

 

230,475

 

(Cost $345,713)

 

 

 

230,475

 

 

6


 

 

 

SHARES

 

VALUE

 

MASTER LIMITED PARTNERSHIP—0.4%

 

 

 

 

 

ASSET MANAGEMENT & CUSTODY BANKS—0.4%

 

 

 

 

 

The Blackstone Group LP.

 

31,561

 

$

1,102,110

 

(Cost $1,029,653)

 

 

 

1,102,110

 

REAL ESTATE INVESTMENT TRUST—0.9%

 

 

 

 

 

SPECIALIZED—0.9%

 

 

 

 

 

Equinix, Inc.

 

5,442

 

2,390,562

 

(Cost $2,491,945)

 

 

 

2,390,562

 

Total Investments

 

 

 

 

 

 

(Cost $237,060,413)

 

95.3

%

$

264,946,773

 

Affiliated Securities (Cost $345,713)

 

 

 

230,475

 

Unaffiliated Securities (Cost $236,714,700)

 

 

 

264,716,298

 

Other Assets in Excess of Liabilities

 

4.7

%

13,083,530

 

NET ASSETS

 

100.0

%

$

278,030,303

 

 

#                 American Depositary Receipts.

(a)         Deemed an affiliate of the Alger fund complex 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. The investment is deemed to not be liquid and may be sold only to qualified buyers.

 

 

 

 

 

 

 

% of net assets

 

 

 

% of net assets

 

 

 

Acquisition

 

Acquisition

 

(Acquisition

 

Market

 

as of

 

Security

 

Date(s)

 

Cost

 

Date)

 

Value

 

7/31/2018

 

Prosetta Biosciences, Inc., Series D

 

02/06/15

 

$

345,713

 

0.80

%

$

230,475

 

0.08

%

Total

 

 

 

 

 

 

 

$

230,475

 

0.08

%

 

See Notes to Financial Statements.

 

7


 

THE ALGER INSTITUTIONAL FUNDS | ALGER MID CAP GROWTH INSTITUTIONAL FUND
Schedule of Investments July 31, 2018 (Unaudited)

 

 

 

SHARES

 

VALUE

 

COMMON STOCKS—96.6%

 

 

 

 

 

AEROSPACE & DEFENSE—2.2%

 

 

 

 

 

HEICO Corp.

 

21,161

 

$

1,616,065

 

L3 Technologies, Inc.

 

3,906

 

837,603

 

 

 

 

 

2,453,668

 

APPAREL ACCESSORIES & LUXURY GOODS—2.6%

 

 

 

 

 

Lululemon Athletica, Inc.*

 

7,018

 

841,809

 

PVH Corp.

 

5,474

 

840,369

 

Tapestry, Inc.

 

25,411

 

1,197,366

 

 

 

 

 

2,879,544

 

APPAREL RETAIL—2.8%

 

 

 

 

 

Burlington Stores, Inc.*

 

12,303

 

1,880,022

 

Ross Stores, Inc.

 

13,442

 

1,175,234

 

 

 

 

 

3,055,256

 

APPLICATION SOFTWARE—7.9%

 

 

 

 

 

ANSYS, Inc.*

 

6,758

 

1,141,291

 

Avalara, Inc.

 

13,175

 

505,130

 

Fair Isaac Corp.*

 

4,526

 

911,808

 

Globant SA*

 

24,071

 

1,334,496

 

PTC, Inc.*

 

14,647

 

1,346,206

 

RealPage, Inc.*

 

38,698

 

2,132,260

 

Smartsheet, Inc., Cl. A*

 

36,236

 

779,074

 

Splunk, Inc.*

 

5,213

 

500,969

 

 

 

 

 

8,651,234

 

ASSET MANAGEMENT & CUSTODY BANKS—1.0%

 

 

 

 

 

WisdomTree Investments, Inc.

 

123,322

 

1,077,834

 

AUTO PARTS & EQUIPMENT—1.5%

 

 

 

 

 

Aptiv PLC.

 

17,119

 

1,678,860

 

BIOTECHNOLOGY—8.0%

 

 

 

 

 

Agios Pharmaceuticals, Inc.*

 

5,035

 

435,074

 

Alnylam Pharmaceuticals, Inc.*

 

7,831

 

743,945

 

BeiGene Ltd.#*

 

2,927

 

555,135

 

BioMarin Pharmaceutical, Inc.*

 

8,217

 

826,302

 

Bluebird Bio, Inc.*

 

5,046

 

781,625

 

Clovis Oncology, Inc.*

 

12,338

 

544,599

 

Exact Sciences Corp.*

 

5,609

 

327,846

 

Halozyme Therapeutics, Inc.*

 

15,653

 

283,319

 

Immunomedics, Inc.*

 

30,567

 

731,468

 

Madrigal Pharmaceuticals, Inc.*

 

1,387

 

356,501

 

Neurocrine Biosciences, Inc.*

 

9,626

 

967,317

 

Sage Therapeutics, Inc.*

 

2,505

 

361,522

 

Sarepta Therapeutics, Inc.*

 

13,832

 

1,607,832

 

TESARO, Inc.*

 

11,474

 

399,639

 

 

 

 

 

8,922,124

 

BUILDING PRODUCTS—1.1%

 

 

 

 

 

Lennox International, Inc.

 

5,468

 

1,186,993

 

CONSTRUCTION MACHINERY & HEAVY TRUCKS—1.0%

 

 

 

 

 

Wabtec Corp.

 

10,500

 

1,158,360

 

 

8


 

 

 

SHARES

 

VALUE

 

COMMON STOCKS—96.6% (CONT.)

 

 

 

 

 

DATA PROCESSING & OUTSOURCED SERVICES—5.2%

 

 

 

 

 

Fiserv, Inc.*

 

26,470

 

$

1,997,956

 

FleetCor Technologies, Inc.*

 

2,288

 

496,496

 

GreenSky, Inc., Cl. A*

 

41,501

 

717,967

 

Square, Inc., Cl. A*

 

14,299

 

924,430

 

Worldpay, Inc., Cl. A*

 

20,259

 

1,665,087

 

 

 

 

 

5,801,936

 

DIVERSIFIED SUPPORT SERVICES—1.8%

 

 

 

 

 

Cintas Corp.

 

9,585

 

1,959,941

 

ELECTRICAL COMPONENTS & EQUIPMENT—1.3%

 

 

 

 

 

AMETEK, Inc.

 

18,498

 

1,439,144

 

ELECTRONIC EQUIPMENT & INSTRUMENTS—2.2%

 

 

 

 

 

FLIR Systems, Inc.

 

21,476

 

1,258,494

 

Trimble, Inc.*

 

34,254

 

1,209,166

 

 

 

 

 

2,467,660

 

ENVIRONMENTAL & FACILITIES SERVICES—0.5%

 

 

 

 

 

BrightView Holdings, Inc.*

 

22,442

 

503,374

 

FERTILIZERS & AGRICULTURAL CHEMICALS—0.8%

 

 

 

 

 

FMC Corp.

 

9,890

 

888,913

 

FINANCIAL EXCHANGES & DATA—2.2%

 

 

 

 

 

Intercontinental Exchange, Inc.

 

10,559

 

780,416

 

MarketAxess Holdings, Inc.

 

4,314

 

835,924

 

MSCI, Inc., Cl. A

 

5,124

 

851,557

 

 

 

 

 

2,467,897

 

HEALTH CARE EQUIPMENT—9.9%

 

 

 

 

 

ABIOMED, Inc.*

 

6,793

 

2,408,322

 

AxoGen, Inc.*

 

18,524

 

832,191

 

Cantel Medical Corp.

 

12,342

 

1,144,227

 

DexCom, Inc.*

 

10,672

 

1,015,227

 

Edwards Lifesciences Corp.*

 

7,265

 

1,034,899

 

IDEXX Laboratories, Inc.*

 

4,974

 

1,218,282

 

Masimo Corp.*

 

6,380

 

634,300

 

Penumbra, Inc.*

 

3,355

 

477,249

 

Tandem Diabetes Care, Inc.*

 

52,890

 

1,457,648

 

Zimmer Biomet Holdings, Inc.

 

5,948

 

746,593

 

 

 

 

 

10,968,938

 

HEALTH CARE SUPPLIES—1.5%

 

 

 

 

 

Align Technology, Inc.*

 

4,525

 

1,613,841

 

HEALTH CARE TECHNOLOGY—1.8%

 

 

 

 

 

Medidata Solutions, Inc.*

 

7,078

 

525,966

 

Teladoc, Inc.*

 

12,080

 

722,988

 

Veeva Systems, Inc., Cl. A*

 

9,449

 

714,628

 

 

 

 

 

1,963,582

 

HOME ENTERTAINMENT SOFTWARE—1.4%

 

 

 

 

 

Take-Two Interactive Software, Inc.*

 

14,172

 

1,601,719

 

HOTELS RESORTS & CRUISE LINES—2.2%

 

 

 

 

 

Hilton Worldwide Holdings, Inc.

 

14,372

 

1,130,501

 

 

9


 

 

 

SHARES

 

VALUE

 

COMMON STOCKS—96.6% (CONT.)

 

 

 

 

 

HOTELS RESORTS & CRUISE LINES—2.2% (CONT.)

 

 

 

 

 

Norwegian Cruise Line Holdings Ltd.*

 

26,752

 

$

1,338,403

 

 

 

 

 

2,468,904

 

HOUSEHOLD PRODUCTS—1.2%

 

 

 

 

 

Church & Dwight Co., Inc.

 

24,014

 

1,342,383

 

HYPERMARKETS & SUPER CENTERS—0.9%

 

 

 

 

 

BJ’s Wholesale Club Holdings, Inc.*

 

42,485

 

1,053,203

 

INDUSTRIAL CONGLOMERATES—1.7%

 

 

 

 

 

Roper Technologies, Inc.

 

6,222

 

1,878,422

 

INDUSTRIAL MACHINERY—3.2%

 

 

 

 

 

Fortive Corp.

 

24,942

 

2,047,239

 

Xylem, Inc.

 

19,782

 

1,514,510

 

 

 

 

 

3,561,749

 

INTERNET & DIRECT MARKETING RETAIL—0.5%

 

 

 

 

 

Pinduoduo, Inc.#*

 

23,819

 

538,071

 

INTERNET SOFTWARE & SERVICES—6.4%

 

 

 

 

 

Etsy, Inc.*

 

68,773

 

2,810,065

 

GoDaddy, Inc., Cl. A*

 

11,321

 

833,452

 

GrubHub, Inc.*

 

14,547

 

1,773,134

 

IAC/InterActiveCorp*

 

3,720

 

547,770

 

Palantir Technologies, Inc., Cl. A*,@,(a)

 

12,426

 

71,450

 

Yelp, Inc., Cl. A*

 

28,730

 

1,059,562

 

 

 

 

 

7,095,433

 

IT CONSULTING & OTHER SERVICES—1.8%

 

 

 

 

 

EPAM Systems, Inc.*

 

6,682

 

870,063

 

Gartner, Inc.*

 

8,664

 

1,173,366

 

 

 

 

 

2,043,429

 

LEISURE FACILITIES—1.5%

 

 

 

 

 

Vail Resorts, Inc.

 

5,857

 

1,621,628

 

LIFE SCIENCES TOOLS & SERVICES—2.2%

 

 

 

 

 

Bio-Techne Corp.

 

2,558

 

410,917

 

Illumina, Inc.*

 

6,302

 

2,044,117

 

 

 

 

 

2,455,034

 

MANAGED HEALTH CARE—1.2%

 

 

 

 

 

WellCare Health Plans, Inc.*

 

4,799

 

1,283,349

 

MOVIES & ENTERTAINMENT—1.3%

 

 

 

 

 

Live Nation Entertainment, Inc.*

 

28,332

 

1,396,201

 

OIL & GAS EXPLORATION & PRODUCTION—1.1%

 

 

 

 

 

Encana Corp.

 

90,909

 

1,221,817

 

PHARMACEUTICALS—1.8%

 

 

 

 

 

Aerie Pharmaceuticals, Inc.*

 

16,369

 

1,105,726

 

GW Pharmaceuticals PLC.#*

 

6,621

 

894,298

 

 

 

 

 

2,000,024

 

PROPERTY & CASUALTY INSURANCE—1.5%

 

 

 

 

 

The Progressive Corp.

 

28,415

 

1,705,184

 

 

10


 

 

 

SHARES

 

VALUE

 

COMMON STOCKS—96.6% (CONT.)

 

 

 

 

 

REGIONAL BANKS—0.5%

 

 

 

 

 

Webster Financial Corp.

 

8,663

 

$

559,023

 

RESEARCH & CONSULTING SERVICES—1.0%

 

 

 

 

 

IHS Markit Ltd.*

 

21,789

 

1,155,471

 

RESTAURANTS—2.1%

 

 

 

 

 

Chipotle Mexican Grill, Inc., Cl. A*

 

1,800

 

780,588

 

Domino’s Pizza, Inc.

 

2,518

 

661,378

 

Dunkin’ Brands Group, Inc.

 

13,211

 

919,882

 

 

 

 

 

2,361,848

 

SEMICONDUCTOR EQUIPMENT—0.9%

 

 

 

 

 

Lam Research Corp.

 

4,978

 

949,006

 

SEMICONDUCTORS—1.6%

 

 

 

 

 

Marvell Technology Group Ltd.

 

41,484

 

884,024

 

Microchip Technology, Inc.

 

9,387

 

877,027

 

 

 

 

 

1,761,051

 

SPECIALIZED CONSUMER SERVICES—0.6%

 

 

 

 

 

ServiceMaster Global Holdings, Inc.*

 

11,955

 

681,315

 

SPECIALTY CHEMICALS—0.8%

 

 

 

 

 

WR Grace & Co.

 

11,648

 

860,321

 

SPECIALTY STORES—1.1%

 

 

 

 

 

Tiffany & Co.

 

8,810

 

1,211,904

 

SYSTEMS SOFTWARE—2.2%

 

 

 

 

 

Proofpoint, Inc.*

 

4,370

 

498,400

 

Red Hat, Inc.*

 

10,260

 

1,449,020

 

ServiceNow, Inc.*

 

2,820

 

496,207

 

 

 

 

 

2,443,627

 

TRUCKING—0.6%

 

 

 

 

 

Old Dominion Freight Line, Inc.

 

4,322

 

634,470

 

TOTAL COMMON STOCKS
(Cost $95,319,884)

 

 

 

107,023,685

 

 

 

 

 

 

 

PREFERRED STOCKS—0.8%

 

 

 

 

 

BIOTECHNOLOGY—0.4%

 

 

 

 

 

Prosetta Biosciences, Inc., Series D*,@,(a),(b)

 

166,009

 

498,027

 

INTERNET SOFTWARE & SERVICES—0.3%

 

 

 

 

 

Palantir Technologies, Inc., Cl. B*,@,(a)

 

50,675

 

291,381

 

PHARMACEUTICALS—0.1%

 

 

 

 

 

Intarcia Therapeutics, Inc., Series DD*,@,(a)

 

7,588

 

89,766

 

TOTAL PREFERRED STOCKS
(Cost $1,327,444)

 

 

 

879,174

 

 

 

 

 

 

 

RIGHTS—1.2%

 

 

 

 

 

BIOTECHNOLOGY—1.2%

 

 

 

 

 

Tolero CDR*,@,(a),(c)

 

422,928

 

1,379,227

 

(Cost $226,186)

 

 

 

1,379,227

 

 

11


 

 

 

SHARES

 

VALUE

 

REAL ESTATE INVESTMENT TRUST—1.1%

 

 

 

 

 

SPECIALIZED—1.1%

 

 

 

 

 

SBA Communications Corp., Cl. A*

 

7,324

 

$

1,159,023

 

(Cost $967,657)

 

 

 

1,159,023

 

 

 

 

 

 

 

SPECIAL PURPOSE VEHICLE—0.2%

 

 

 

 

 

CONSUMER FINANCE—0.2%

 

 

 

 

 

JS Kred SPV I, LLC.*,@,(a)

 

240,362

 

267,908

 

(Cost $240,362)

 

 

 

267,908

 

 

 

 

 

 

 

Total Investments
(Cost $98,081,533)

 

99.9

%

$

110,709,017

 

Affiliated Securities (Cost $747,040)

 

 

 

498,027

 

Unaffiliated Securities (Cost $97,334,493)

 

 

 

110,210,990

 

Other Assets in Excess of Liabilities

 

0.1

%

152,992

 

NET ASSETS

 

100.0

%

$

110,862,009

 

 

#                 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 Alger fund complex 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. The investment is deemed to not be liquid and may be sold only to qualified buyers.

 

 

 

 

 

 

 

% of net assets

 

 

 

% of net assets

 

 

 

Acquisition

 

Acquisition

 

(Acquisition

 

Market

 

as of

 

Security

 

Date(s)

 

Cost

 

Date)

 

Value 

 

7/31/2018

 

Intarcia Therapeutics, Inc., Series DD

 

03/27/14

 

$

245,775

 

0.14

%

$

89,766

 

0.08

%

JS Kred SPV I, LLC.

 

06/26/15

 

240,362

 

0.15

%

267,908

 

0.24

%

Palantir Technologies, Inc., Cl. A

 

10/07/14

 

80,856

 

0.05

%

71,450

 

0.06

%

Palantir Technologies, Inc., Cl. B

 

10/07/14

 

334,629

 

0.22

%

291,381

 

0.26

%

Prosetta Biosciences, Inc., Series D

 

02/06/15

 

747,040

 

0.50

%

498,027

 

0.45

%

Tolero CDR

 

02/06/17

 

226,186

 

0.23

%

1,379,227

 

1.25

%

Total

 

 

 

 

 

 

 

$

2,597,759

 

2.34

%

 

See Notes to Financial Statements.

 

12


 

THE ALGER INSTITUTIONAL FUNDS | ALGER SMALL CAP GROWTH INSTITUTIONAL FUND
Schedule of Investments July 31, 2018 (Unaudited)

 

 

 

SHARES

 

VALUE

 

COMMON STOCKS—96.5%

 

 

 

 

 

AEROSPACE & DEFENSE—1.3%

 

 

 

 

 

Hexcel Corp.

 

14,403

 

$

993,951

 

Mercury Systems, Inc.*

 

41,345

 

1,725,327

 

 

 

 

 

2,719,278

 

APPAREL ACCESSORIES & LUXURY GOODS—1.1%

 

 

 

 

 

Canada Goose Holdings, Inc.*

 

37,365

 

2,145,872

 

 

 

 

 

 

 

APPAREL RETAIL—1.1%

 

 

 

 

 

Burlington Stores, Inc.*

 

13,974

 

2,135,367

 

 

 

 

 

 

 

APPLICATION SOFTWARE—15.0%

 

 

 

 

 

ACI Worldwide, Inc.*

 

128,607

 

3,323,205

 

Avalara, Inc.*

 

43,674

 

1,674,461

 

Blackbaud, Inc.

 

55,749

 

5,564,308

 

Blackline, Inc.*

 

23,413

 

999,735

 

Ellie Mae, Inc.*

 

15,799

 

1,567,577

 

Everbridge, Inc.*

 

35,503

 

1,596,925

 

Guidewire Software, Inc.*

 

33,899

 

2,922,094

 

HubSpot, Inc.*

 

27,606

 

3,425,905

 

Manhattan Associates, Inc.*

 

39,794

 

1,914,887

 

Paycom Software, Inc.*

 

24,228

 

2,574,225

 

Tyler Technologies, Inc.*

 

21,548

 

4,848,084

 

 

 

 

 

30,411,406

 

ASSET MANAGEMENT & CUSTODY BANKS—1.2%

 

 

 

 

 

WisdomTree Investments, Inc.

 

285,829

 

2,498,145

 

 

 

 

 

 

 

BIOTECHNOLOGY—5.3%

 

 

 

 

 

Bluebird Bio, Inc.*

 

5,230

 

810,127

 

CareDx, Inc.*

 

126,441

 

1,701,896

 

Clovis Oncology, Inc.*

 

31,988

 

1,411,950

 

Exact Sciences Corp.*

 

30,095

 

1,759,053

 

Halozyme Therapeutics, Inc.*

 

48,673

 

880,981

 

Repligen Corp.*

 

20,428

 

987,285

 

Sarepta Therapeutics, Inc.*

 

27,765

 

3,227,404

 

 

 

 

 

10,778,696

 

BREWERS—0.2%

 

 

 

 

 

Craft Brew Alliance, Inc.*

 

20,924

 

414,295

 

 

 

 

 

 

 

CONSUMER FINANCE—0.9%

 

 

 

 

 

LendingClub Corp.*

 

438,809

 

1,807,893

 

 

 

 

 

 

 

DATA PROCESSING & OUTSOURCED SERVICES—0.4%

 

 

 

 

 

GreenSky, Inc., Cl. A*

 

41,660

 

720,718

 

 

 

 

 

 

 

ELECTRONIC COMPONENTS—0.8%

 

 

 

 

 

Dolby Laboratories, Inc., Cl. A

 

26,249

 

1,691,748

 

 

 

 

 

 

 

ELECTRONIC EQUIPMENT & INSTRUMENTS—4.2%

 

 

 

 

 

Cognex Corp.

 

90,595

 

4,781,604

 

FLIR Systems, Inc.

 

65,155

 

3,818,083

 

 

 

 

 

8,599,687

 

FINANCIAL EXCHANGES & DATA—0.5%

 

 

 

 

 

MarketAxess Holdings, Inc.

 

5,154

 

998,691

 

 

13


 

 

 

SHARES

 

VALUE

 

COMMON STOCKS—96.5% (CONT.)

 

 

 

 

 

GENERAL MERCHANDISE STORES—0.5%

 

 

 

 

 

Ollie’s Bargain Outlet Holdings, Inc.*

 

13,446

 

$

934,497

 

 

 

 

 

 

 

HEALTH CARE EQUIPMENT—13.7%

 

 

 

 

 

ABIOMED, Inc.*

 

24,143

 

8,559,418

 

AxoGen, Inc.*

 

37,139

 

1,668,470

 

Cantel Medical Corp.

 

62,364

 

5,781,766

 

DexCom, Inc.*

 

21,903

 

2,083,632

 

Inogen, Inc.*

 

25,672

 

5,115,146

 

Insulet Corp.*

 

56,861

 

4,728,561

 

 

 

 

 

27,936,993

 

HEALTH CARE SUPPLIES—9.2%

 

 

 

 

 

Neogen Corp.*

 

87,415

 

7,202,996

 

OraSure Technologies, Inc.*

 

102,626

 

1,723,091

 

Quidel Corp.*

 

145,655

 

9,884,148

 

 

 

 

 

18,810,235

 

HEALTH CARE TECHNOLOGY—7.2%

 

 

 

 

 

Medidata Solutions, Inc.*

 

66,698

 

4,956,329

 

Veeva Systems, Inc., Cl. A*

 

80,573

 

6,093,736

 

Vocera Communications, Inc.*

 

119,973

 

3,620,785

 

 

 

 

 

14,670,850

 

HOME ENTERTAINMENT SOFTWARE—3.1%

 

 

 

 

 

Take-Two Interactive Software, Inc.*

 

55,793

 

6,305,725

 

 

 

 

 

 

 

HUMAN RESOURCE & EMPLOYMENT SERVICES—1.1%

 

 

 

 

 

WageWorks, Inc.*

 

42,288

 

2,232,806

 

 

 

 

 

 

 

HYPERMARKETS & SUPER CENTERS—0.0%

 

 

 

 

 

BJ’s Wholesale Club Holdings, Inc.*

 

2,694

 

66,784

 

 

 

 

 

 

 

INDUSTRIAL MACHINERY—2.7%

 

 

 

 

 

DMC Global, Inc.

 

34,632

 

1,421,644

 

Sun Hydraulics Corp.

 

79,026

 

4,114,093

 

 

 

 

 

5,535,737

 

INTERNET SOFTWARE & SERVICES—7.4%

 

 

 

 

 

Apptio, Inc., Cl. A*

 

39,083

 

1,312,016

 

Coupa Software, Inc.*

 

21,999

 

1,348,759

 

Etsy, Inc.*

 

65,564

 

2,678,945

 

GrubHub, Inc.*

 

17,142

 

2,089,438

 

Q2 Holdings, Inc.*

 

44,938

 

2,658,083

 

Shopify, Inc., Cl. A*

 

15,953

 

2,204,864

 

SPS Commerce, Inc.*

 

18,644

 

1,599,469

 

Yelp, Inc., Cl. A*

 

32,141

 

1,185,360

 

 

 

 

 

15,076,934

 

IT CONSULTING & OTHER SERVICES—1.0%

 

 

 

 

 

InterXion Holding NV*

 

29,993

 

1,945,946

 

 

 

 

 

 

 

LEISURE FACILITIES—1.7%

 

 

 

 

 

Planet Fitness, Inc., Cl. A*

 

71,844

 

3,414,027

 

 

 

 

 

 

 

LIFE SCIENCES TOOLS & SERVICES—4.2%

 

 

 

 

 

Bio-Techne Corp.

 

36,397

 

5,846,814

 

 

14


 

 

 

SHARES

 

VALUE

 

COMMON STOCKS—96.5% (CONT.)

 

 

 

 

 

LIFE SCIENCES TOOLS & SERVICES—4.2% (CONT.)

 

 

 

 

 

PRA Health Sciences, Inc.*

 

24,918

 

$

2,619,879

 

 

 

 

 

8,466,693

 

MANAGED HEALTH CARE—1.2%

 

 

 

 

 

HealthEquity, Inc.*

 

33,183

 

2,505,316

 

 

 

 

 

 

 

MOVIES & ENTERTAINMENT—2.0%  

 

 

 

 

 

Lions Gate Entertainment Corp., Cl. A

 

122,147

 

2,913,206

 

Live Nation Entertainment, Inc.*

 

23,163

 

1,141,473

 

 

 

 

 

4,054,679

 

OIL & GAS EXPLORATION & PRODUCTION—1.5% 

 

 

 

 

 

Parsley Energy, Inc., Cl. A*

 

59,279

 

1,863,139

 

TPG Pace Energy Holdings Corp., Cl. A*

 

88,827

 

1,092,572

 

 

 

 

 

2,955,711

 

PERSONAL PRODUCTS—0.4%

 

 

 

 

 

elf Beauty, Inc.*

 

62,327

 

900,002

 

 

 

 

 

 

 

PHARMACEUTICALS—0.8%

 

 

 

 

 

Aerie Pharmaceuticals, Inc.*

 

23,786

 

1,606,744

 

 

 

 

 

 

 

RESTAURANTS—1.4%  

 

 

 

 

 

Shake Shack, Inc., Cl. A*

 

20,022

 

1,247,971

 

Wingstop, Inc.

 

33,118

 

1,634,374

 

 

 

 

 

2,882,345

 

SEMICONDUCTORS—0.4%

 

 

 

 

 

Universal Display Corp.

 

8,470

 

815,661

 

 

 

 

 

 

 

SPECIALTY CHEMICALS—1.8%

 

 

 

 

 

Balchem Corp.

 

36,700

 

3,680,643

 

 

 

 

 

 

 

SPECIALTY STORES—0.8%

 

 

 

 

 

Five Below, Inc.*

 

16,108

 

1,565,053

 

 

 

 

 

 

 

SYSTEMS SOFTWARE—2.4%

 

 

 

 

 

Proofpoint, Inc.*

 

43,590

 

4,971,439

 

TOTAL COMMON STOCKS
(Cost $117,226,355)

 

 

 

196,256,616

 

 

 

 

 

 

 

PREFERRED STOCKS—0.4%

 

 

 

 

 

BIOTECHNOLOGY—0.2%

 

 

 

 

 

Prosetta Biosciences, Inc., Series D*,@,(a),(b)

 

133,263

 

399,789

 

 

 

 

 

 

 

PHARMACEUTICALS—0.2%

 

 

 

 

 

Intarcia Therapeutics, Inc., Series DD*,@,(b)

 

41,238

 

487,846

 

TOTAL PREFERRED STOCKS
(Cost $1,935,383)

 

 

 

887,635

 

 

 

 

 

 

 

RIGHTS—0.9%

 

 

 

 

 

BIOTECHNOLOGY—0.9%  

 

 

 

 

 

Dyax Corp.*,@,(b),(c)

 

21,650

 

61,486

 

Neuralstem, Inc., Strike Price: 47.61, 1/8/19*

 

19,260

 

—

 

 

15


 

 

 

SHARES

 

VALUE

 

RIGHTS—0.9% (CONT.)

 

 

 

 

 

BIOTECHNOLOGY—0.9% (CONT.)

 

 

 

 

 

Tolero CDR*,@,(b),(c)

 

528,559

 

$

1,723,705

 

 

 

 

 

1,785,191

 

TOTAL RIGHTS
(Cost $285,725)

 

 

 

1,785,191

 

 

 

 

 

 

 

REAL ESTATE INVESTMENT TRUST—0.8%

 

 

 

 

 

SPECIALIZED—0.8%

 

 

 

 

 

CyrusOne, Inc.

 

27,950

 

1,730,664

 

(Cost $941,405)

 

 

 

1,730,664

 

 

 

 

 

 

 

SPECIAL PURPOSE VEHICLE—0.4%

 

 

 

 

 

CONSUMER FINANCE—0.4%

 

 

 

 

 

JS Kred SPV I, LLC.*,@,(b)

 

775,134

 

863,964

 

(Cost $775,134)

 

 

 

863,964

 

Total Investments
(Cost $121,164,002)

 

99.0

%

$

201,524,070

 

Affiliated Securities (Cost $599,684)

 

 

 

399,789

 

Unaffiliated Securities (Cost $120,564,318)

 

 

 

201,124,281

 

Other Assets in Excess of Liabilities

 

1.0

%

1,942,201

 

NET ASSETS

 

100.0

%

$

203,466,271

 

 

(a)

 

Deemed an affiliate of the Alger fund complex in accordance with Section 2(a)(3) of the Investment Company Act of 1940. See Note 5 — Affiliated Securities.

(b)

 

Security is valued in good faith at fair value determined using significant unobservable inputs pursuant to procedures established by the Board.

(c)

 

Contingent Deferred Rights.

*

 

Non-income producing security.

@

 

Restricted security - Investment in security not registered under the Securities Act of 1933. The investment is deemed to not be liquid and may be sold only to qualified buyers.

 

 

 

 

 

 

 

% of net assets

 

 

 

% of net assets

 

 

 

Acquisition

 

Acquisition

 

(Acquisition

 

Market

 

as of

 

Security

 

Date(s)

 

Cost

 

Date)

 

Value

 

7/31/2018

 

Dyax Corp. Rights

 

05/01/15

 

$

0

 

0.00

%

$

37,488

 

0.02

%

Dyax Corp. Rights

 

08/14/15

 

0

 

0.00

%

23,998

 

0.01

%

Intarcia Therapeutics, Inc., Series DD

 

03/27/14

 

1,335,699

 

0.15

%

487,846

 

0.24

%

JS Kred SPV I, LLC.

 

06/26/15

 

775,134

 

0.15

%

863,964

 

0.42

%

Prosetta Biosciences, Inc., Series D

 

02/06/15

 

599,684

 

0.10

%

399,789

 

0.20

%

Tolero CDR

 

02/06/17

 

285,725

 

0.16

%

1,723,705

 

0.85

%

Total

 

 

 

 

 

 

 

$

3,536,790

 

1.74

%

 

See Notes to Financial Statements.

 

16


 

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 Accounting Standards Codification 946-Financial Services — Investment Companies. The Trust operates as a series company and currently offers an unlimited number of shares of beneficial interest in four funds — Alger Capital Appreciation Institutional Fund, Alger Capital Appreciation Focus 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. 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 (including escrow receivable) at fair value using independent dealers or pricing services under policies approved by the Trust’s Board of Trustees (“Board”). Investments 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 Standard Time).

 

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 as reported by an independent pricing service on the primary market or exchange on which they are traded. In the absence of quoted sales, such securities are valued at the bid price or, in the absence of a recent bid price, the equivalent as obtained from one or more of the major market makers for the securities to be valued.

 

Debt securities generally trade in the over-the-counter market. Debt securities with remaining maturities of more than sixty days at the time of acquisition are valued on the basis of 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

 

17


 

THE ALGER INSTITUTIONAL FUNDS

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

 

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 (including escrow receivable) are valued at fair value, as determined in good faith pursuant to procedures established by the Board.

 

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 foreign closing prices to reflect what the 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.

 

Financial Accounting Standards Board 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)

 

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,

 

18


 

THE ALGER INSTITUTIONAL FUNDS

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

 

depreciation and amortization (“EBITDA”) multiples, discount rates, 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 values may significantly differ from the values if there was an active market.

 

Valuation processes are determined by a Valuation Committee (“Committee”) established by the Board and comprised of representatives of the Trust’s investment adviser. The Committee reports its fair valuation determinations to the Board which is responsible for approving 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.

 

The Funds will record a change to a security’s fair value level if new inputs are available or it becomes evident that inputs previously considered for leveling have changed or are no longer relevant. Transfers between Levels 1, 2 and 3 are recognized at the end of the reporting period.

 

(b) Cash and Cash Equivalents: Cash and cash equivalents include U.S. dollars and overnight time deposits.

 

NOTE 3 — Fair Value Measurements

 

The following is a summary of the inputs used as of July 31, 2018, in valuing the Funds’ investments carried at fair value on a recurring basis. Based upon the nature, characteristics, and risks associated with their investments, the Funds have determined that presenting them by security type and sector is appropriate.

 

Alger Capital Appreciation
Institutional Fund

 

TOTAL FUND

 

LEVEL 1

 

LEVEL 2 

 

LEVEL 3

 

COMMON STOCKS

 

 

 

 

 

 

 

 

 

Consumer Discretionary

 

$

596,152,968

 

$

590,429,321

 

$

5,723,647

 

—

 

Consumer Staples

 

11,212,330

 

11,212,330

 

—

 

—

 

Energy

 

26,619,501

 

26,619,501

 

—

 

—

 

Financials

 

189,890,632

 

189,890,632

 

—

 

—

 

Health Care

 

548,776,171

 

548,776,171

 

—

 

—

 

Industrials

 

325,150,430

 

325,150,430

 

—

 

—

 

Information Technology

 

1,664,344,661

 

1,662,970,238

 

—

 

$

1,374,423

 

Materials

 

156,275,887

 

156,275,887

 

—

 

—

 

Telecommunication Services

 

13,237,500

 

13,237,500

 

—

 

—

 

TOTAL COMMON STOCKS

 

$

3,531,660,080

 

$

3,524,562,010

 

$

5,723,647

 

$

1,374,423

 

 

19


 

THE ALGER INSTITUTIONAL FUNDS

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

 

Alger Capital Appreciation

 

 

 

 

 

 

 

 

 

Institutional Fund 

 

TOTAL FUND

 

LEVEL 1

 

LEVEL 2

 

LEVEL 3

 

MASTER LIMITED PARTNERSHIP

 

 

 

 

 

 

 

 

 

Financials

 

$

20,097,403

 

$

20,097,403

 

—

 

—

 

PREFERRED STOCKS

 

 

 

 

 

 

 

 

 

Health Care

 

1,320,879

 

—

 

—

 

$

1,320,879

 

Information Technology

 

6,335,626

 

—

 

—

 

6,335,626

 

TOTAL PREFERRED STOCKS

 

$

7,656,505

 

—

 

—

 

$

7,656,505

 

REAL ESTATE INVESTMENT TRUST

 

 

 

 

 

 

 

 

 

Real Estate

 

65,859,689

 

65,859,689

 

—

 

—

 

TOTAL INVESTMENTS IN SECURITIES

 

$

3,625,273,677

 

$

3,610,519,102

 

$

5,723,647

 

$

9,030,928

 

 

 

Alger Capital Appreciation Focus

 

 

 

 

 

 

 

 

 

Fund 

 

TOTAL FUND

 

LEVEL 1

 

LEVEL 2 

 

LEVEL 3

 

COMMON STOCKS

 

 

 

 

 

 

 

 

 

Consumer Discretionary

 

$

42,922,583

 

$

42,922,583

 

—

 

—

 

Financials

 

17,546,924

 

17,546,924

 

—

 

—

 

Health Care

 

37,610,325

 

37,610,325

 

—

 

—

 

Industrials

 

16,162,529

 

16,162,529

 

—

 

—

 

Information Technology

 

136,200,369

 

136,200,369

 

—

 

—

 

Materials

 

10,780,896

 

10,780,896

 

—

 

—

 

TOTAL COMMON STOCKS

 

$

261,223,626

 

$

261,223,626

 

—

 

—

 

MASTER LIMITED PARTNERSHIP

 

 

 

 

 

 

 

 

 

Financials

 

1,102,110

 

1,102,110

 

—

 

—

 

PREFERRED STOCKS

 

 

 

 

 

 

 

 

 

Health Care

 

230,475

 

—

 

—

 

$

230,475

 

REAL ESTATE INVESTMENT TRUST

 

 

 

 

 

 

 

 

 

Real Estate

 

2,390,562

 

2,390,562

 

—

 

—

 

TOTAL INVESTMENTS IN SECURITIES

 

$

264,946,773

 

$

264,716,298

 

—

 

$

230,475

 

 

Alger Mid Cap Growth Institutional

 

 

 

 

 

 

 

 

 

Fund

 

TOTAL FUND

 

LEVEL 1

 

LEVEL 2

 

LEVEL 3

 

COMMON STOCKS

 

 

 

 

 

 

 

 

 

Consumer Discretionary

 

$

17,893,531

 

$

17,893,531

 

—

 

—

 

Consumer Staples

 

2,395,586

 

2,395,586

 

—

 

—

 

Energy

 

1,221,817

 

1,221,817

 

—

 

—

 

Financials

 

5,809,938

 

5,809,938

 

—

 

—

 

Health Care

 

29,206,892

 

29,206,892

 

—

 

—

 

Industrials

 

15,931,592

 

15,931,592

 

—

 

—

 

Information Technology

 

32,815,095

 

32,743,645

 

—

 

$

71,450

 

Materials

 

1,749,234

 

1,749,234

 

—

 

—

 

TOTAL COMMON STOCKS

 

$

107,023,685

 

$

106,952,235

 

—

 

$

71,450

 

PREFERRED STOCKS

 

 

 

 

 

 

 

 

 

Health Care

 

587,793

 

—

 

—

 

587,793

 

Information Technology

 

291,381

 

—

 

—

 

291,381

 

TOTAL PREFERRED STOCKS

 

$

879,174

 

—

 

—

 

$

879,174

 

 

20


 

THE ALGER INSTITUTIONAL FUNDS

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

 

Alger Mid Cap Growth Institutional

 

 

 

 

 

 

 

 

 

Fund 

 

TOTAL FUND

 

LEVEL 1

 

LEVEL 2

 

 LEVEL 3

 

REAL ESTATE INVESTMENT TRUST

 

 

 

 

 

 

 

 

 

Real Estate

 

$

1,159,023

 

$

1,159,023

 

—

 

—

 

RIGHTS

 

 

 

 

 

 

 

 

 

Health Care

 

1,379,227

 

—

 

—

 

$

1,379,227

 

SPECIAL PURPOSE VEHICLE

 

 

 

 

 

 

 

 

 

Financials

 

267,908

 

—

 

—

 

267,908

 

TOTAL INVESTMENTS IN SECURITIES

 

$

110,709,017

 

$

108,111,258

 

—

 

$

2,597,759

 

Escrow Receivable

 

$

493,684

 

—

 

$

493,684

*

—

 

 

Alger Small Cap Growth

 

 

 

 

 

 

 

 

 

Institutional Fund 

 

TOTAL FUND

 

LEVEL 1

 

LEVEL 2

 

 LEVEL 3

 

COMMON STOCKS

 

 

 

 

 

 

 

 

 

Consumer Discretionary

 

$

17,131,840

 

$

17,131,840

 

—

 

—

 

Consumer Staples

 

1,381,081

 

1,381,081

 

—

 

—

 

Energy

 

2,955,711

 

2,955,711

 

—

 

—

 

Financials

 

5,304,729

 

5,304,729

 

—

 

—

 

Health Care

 

84,775,527

 

84,775,527

 

—

 

—

 

Industrials

 

10,487,821

 

10,487,821

 

—

 

—

 

Information Technology

 

70,539,264

 

70,539,264

 

—

 

—

 

Materials

 

3,680,643

 

3,680,643

 

—

 

—

 

TOTAL COMMON STOCKS

 

$

196,256,616

 

$

196,256,616

 

—

 

—

 

PREFERRED STOCKS

 

 

 

 

 

 

 

 

 

Health Care

 

887,635

 

—

 

—

 

$

887,635

 

REAL ESTATE INVESTMENT TRUST

 

 

 

 

 

 

 

 

 

Real Estate

 

1,730,664

 

1,730,664

 

—

 

—

 

RIGHTS

 

 

 

 

 

 

 

 

 

Health Care

 

1,785,191

 

—

 

—

**

1,785,191

 

SPECIAL PURPOSE VEHICLE

 

 

 

 

 

 

 

 

 

Financials

 

863,964

 

—

 

—

 

863,964

 

TOTAL INVESTMENTS IN SECURITIES

 

$

201,524,070

 

$

197,987,280

 

—

 

$

3,536,790

 

Escrow Receivable

 

$

616,987

 

—

 

$

616,987

*

—

 

 

* Amounts held for indemnification claims of Sumitomo Dainippon Pharma Co., Ltd. following its acquisition of Tolero Pharmaceuticals, Inc.

**Alger Small Cap Growth Institutional Fund’s holding of Neuralstem Inc. rights is classified as a Level 2 investment and fair valued at zero as of July 31, 2018.

 

21


 

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, 2017

 

$

1,374,423

*

Transfers into Level 3

 

—

 

Transfers out of Level 3

 

—

 

Total gains or losses

 

 

 

Included in net realized gain (loss) on investments

 

(36,151

)

Included in net change in unrealized appreciation (depreciation) on investments

 

36,151

 

Purchases and sales

 

 

 

Purchases

 

—

 

Sales

 

—

 

Closing balance at July 31, 2018

 

1,374,423

 

Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2018

 

$

—

 

 

Alger Capital Appreciation Institutional Fund

 

Corporate Bonds

 

Opening balance at November 1, 2017

 

$

0

*

Transfers into Level 3

 

—

 

Transfers out of Level 3

 

—

 

Total gains or losses

 

 

 

Included in net realized gain (loss) on investments

 

(575

)

Included in net change in unrealized appreciation (depreciation) on investments

 

575

 

Purchases and sales

 

 

 

Purchases

 

—

 

Sales

 

—

 

Closing balance at July 31, 2018

 

—

 

Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2018

 

$

—

 

 

Alger Capital Appreciation Institutional Fund

 

Preferred Stocks

 

Opening balance at November 1, 2017

 

$

12,747,973

*

Transfers into Level 3

 

—

 

Transfers out of Level 3

 

—

 

Total gains or losses

 

 

 

Included in net realized gain (loss) on investments

 

(2,359,928

)

Included in net change in unrealized appreciation (depreciation) on investments

 

(2,731,540

)

Purchases and sales

 

 

 

Purchases

 

—

 

Sales

 

—

 

Closing balance at July 31, 2018

 

7,656,505

 

Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2018

 

$

(5,091,468

)

 

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

 

Warrants

 

Opening balance at November 1, 2017

 

$

0

*

Transfers into Level 3

 

—

 

Transfers out of Level 3

 

—

 

Total gains or losses

 

 

 

Included in net realized gain (loss) on investments

 

(574,087

)

Included in net change in unrealized appreciation (depreciation) on investments

 

574,087

 

Purchases and sales

 

 

 

Purchases

 

—

 

Sales

 

—

 

Closing balance at July 31, 2018

 

—

 

Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2018

 

$

—

 

 

 

 

FAIR VALUE
MEASUREMENTS
USING SIGNIFICANT
UNOBSERVABLE
INPUTS (LEVEL 3)

 

Alger Capital Appreciation Focus Fund

 

Preferred Stocks

 

Opening balance at November 1, 2017

 

$

239,694

 

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

 

(9,219

)

Purchases and sales

 

 

 

Purchases

 

—

 

Sales

 

—

 

Closing balance at July 31, 2018

 

230,475

 

Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2018

 

$

(9,219

)

 

23


 

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

 

Common Stocks

 

Opening balance at November 1, 2017

 

$

71,450

*

Transfers into Level 3

 

—

 

Transfers out of Level 3

 

—

 

Total gains or losses

 

 

 

Included in net realized gain (loss) on investments

 

(2,590

)

Included in net change in unrealized appreciation (depreciation) on investments

 

2,590

 

Purchases and sales

 

 

 

Purchases

 

—

 

Sales

 

—

 

Closing balance at July 31, 2018

 

71,450

 

Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2018

 

$

—

 

 

Alger Mid Cap Growth Institutional Fund

 

Corporate Bonds

 

Opening balance at November 1, 2017

 

$

0

*

Transfers into Level 3

 

—

 

Transfers out of Level 3

 

—

 

Total gains or losses

 

 

 

Included in net realized gain (loss) on investments

 

(17

)

Included in net change in unrealized appreciation (depreciation) on investments

 

17

 

Purchases and sales

 

 

 

Purchases

 

—

 

Sales

 

—

 

Closing balance at July 31, 2018

 

—

 

Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2018

 

$

—

 

 

Alger Mid Cap Growth Institutional Fund

 

Preferred Stocks

 

Opening balance at November 1, 2017

 

$

1,283,070

*

Transfers into Level 3

 

—

 

Transfers out of Level 3

 

—

 

Total gains or losses

 

 

 

Included in net realized gain (loss) on investments

 

(155,739

)

Included in net change in unrealized appreciation (depreciation) on investments

 

(211,846

)

Purchases and sales

 

 

 

Purchases

 

—

 

Sales

 

(36,311

)

Closing balance at July 31, 2018

 

879,174

 

Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2018

 

$

(365,934

)

 

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

 

Rights

 

Opening balance at November 1, 2017

 

$

1,207,798

 

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

 

171,429

 

Purchases and sales

 

 

 

Purchases

 

—

 

Sales

 

—

 

Closing balance at July 31, 2018

 

1,379,227

 

Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2018

 

$

171,429

 

 

 

 

Special Purpose

 

Alger Mid Cap Growth Institutional Fund

 

Vehicle

 

Opening balance at November 1, 2017

 

$

290,165

 

Transfers into Level 3

 

—

 

Transfers out of Level 3

 

—

 

Total gains or losses

 

 

 

Included in net realized gain (loss) on investments

 

—

 

Included in net change in unrealized appreciation (depreciation) on investments

 

(22,257

)

Purchases and sales

 

 

 

Purchases

 

—

 

Sales

 

—

 

Closing balance at July 31, 2018

 

267,908

 

Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2018

 

$

(22,257

)

 

Alger Mid Cap Growth Institutional Fund

 

Warrants

 

Opening balance at November 1, 2017

 

$

0

*

Transfers into Level 3

 

—

 

Transfers out of Level 3

 

—

 

Total gains or losses

 

 

 

Included in net realized gain (loss) on investments

 

(17,111

)

Included in net change in unrealized appreciation (depreciation) on investments

 

17,111

 

Purchases and sales

 

 

 

Purchases

 

—

 

Sales

 

—

 

Closing balance at July 31, 2018

 

—

 

Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2018

 

$

—

 

 

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, 2017

 

$

2,784,079

 

Transfers into Level 3

 

—

 

Transfers out of Level 3

 

—

 

Total gains or losses

 

 

 

Included in net realized gain (loss) on investments

 

—

 

Included in net change in unrealized appreciation (depreciation) on investments

 

(1,896,444

)

Purchases and sales

 

 

 

Purchases

 

—

 

Sales

 

—

 

Closing balance at July 31, 2018

 

887,635

 

Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2018

 

$

(1,896,444

)

 

Alger Small Cap Growth Institutional Fund

 

Rights

 

Opening balance at November 1, 2017

 

$

1,570,945

 

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

 

214,246

 

Purchases and sales

 

 

 

Purchases

 

—

 

Sales

 

—

 

Closing balance at July 31, 2018

 

1,785,191

 

Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2018

 

$

214,246

 

 

 

 

Special Purpose

 

Alger Small Cap Growth Institutional Fund

 

Vehicle

 

Opening balance at November 1, 2017

 

$

935,742

 

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

 

(71,778

)

Purchases and sales

 

 

 

Purchases

 

—

 

Sales

 

—

 

Closing balance at July 31, 2018

 

863,964

 

Net change in unrealized appreciation (depreciation) attributable to investments still held at July 31, 2018

 

$

(71,778

)

 

* Includes securities that are fair valued at $0.

 

26


 

THE ALGER INSTITUTIONAL FUNDS

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

 

The following table provides quantitative information about our Level 3 fair value measurements of our investments as of July 31, 2018. In addition to the techniques and inputs noted in the table below, according to our valuation policy we may also use other valuation techniques and methodologies when determining our fair value measurements. The table below is not intended to be all-inclusive, but rather provides information on the Level 3 inputs as they relate to our fair value measurements.

 

 

 

Fair Value

 

Valuation

 

Unobservable

 

 

 

Weighted Average

 

 

 

July 31, 2018

 

Methodology

 

Input

 

Input/Range

 

Inputs

 

Alger Capital Appreciation Institutional Fund

 

 

 

 

 

 

 

 

 

 

 

Common Stocks

 

$

1,374,423

 

Market Approach

 

Market Quotation

 

N/A*

 

N/A

 

Preferred Stocks

 

7,656,505

 

Market Approach

 

Time to Exit

 

3 years

 

N/A

 

 

 

 

 

 

 

Volatility

 

76.7%

 

N/A

 

 

 

 

 

 

 

Market Quotation

 

N/A*

 

N/A

 

Alger Capital Appreciation Focus Fund

 

 

 

 

 

 

 

 

 

 

 

Preferred Stocks

 

$

230,475

 

Income Approach

 

Discount Rate

 

41%-45%

 

N/A

 

Alger Mid Cap Growth Institutional Fund

 

 

 

 

 

 

 

 

 

 

 

Common Stocks

 

$

71,450

 

Market Approach

 

Market Quotation

 

N/A*

 

N/A

 

Preferred Stocks

 

498,027

 

Income Approach

 

Discount Rate

 

41%-45%

 

N/A

 

Preferred Stocks

 

381,147

 

Market Approach

 

Time to Exit 

 

3 years

 

N/A

 

 

 

 

 

 

 

Volatility

 

76.7%

 

N/A

 

 

 

 

 

 

 

Market Quotation

 

N/A*

 

N/A

 

Special Purpose Vehicle

 

267,908

 

Market Approach

 

Revenue Multiple

 

2.85x-4.26x

 

N/A

 

Rights

 

1,379,227

 

Income Approach

 

Discount Rate

 

5.70%-27.40%

 

N/A

 

Alger Small Cap Growth Institutional Fund

 

 

 

 

 

 

 

 

 

 

 

Preferred Stocks

 

$

339,789

 

Income Approach

 

Discount Rate

 

41%-45%

 

N/A

 

Preferred Stocks

 

487,846

 

Market Approach

 

Time to Exit

 

3 years

 

N/A

 

 

 

 

 

 

 

Volatility

 

76.7%

 

 

 

Special Purpose Vehicle

 

863,964

 

Market Approach

 

Revenue Multiple

 

2.85x-4.26x

 

N/A

 

Rights

 

1,785,191

 

Income Approach

 

Discount Rate

 

2.05%-27.40%

 

16.05

%

 

* The Fund utilized a market approach to fair value this security. The significant unobservable input used in the valuation model was a market quotation available to the Fund at July 31, 2018.

 

27


 

THE ALGER INSTITUTIONAL FUNDS

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 those inputs could result in significantly higher or lower fair value measurements than those noted in the table above.

 

On July 31, 2018, there were no transfers of securities between Level 1, Level 2 and Level 3.

 

Certain of the Funds’ assets and liabilities are held at carrying amount or face value, which approximates fair value for financial statement purposes. As of July 31, 2018, such assets are categorized within the disclosure hierarchy as follows:

 

 

 

TOTAL FUND

 

LEVEL 1

 

LEVEL 2

 

LEVEL 3

 

Cash, Foreign cash and Cash equivalents:

 

 

 

 

 

 

 

 

 

Alger Capital Appreciation Institutional Fund

 

$

140,834,805

 

—

 

$

140,834,805

 

—

 

Alger Capital Appreciation Focus Fund

 

15,184,178

 

—

 

15,184,178

 

—

 

Alger Mid Cap Growth Institutional Fund

 

193,869

 

—

 

193,869

 

—

 

Alger Small Cap Growth Institutional Fund Bank overdraft

 

(187,579

)

$

(187,579

)

—

 

—

 

 

NOTE 4 — Derivatives:

 

Financial Accounting Standards Board 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, 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.

 

28


 

THE ALGER INSTITUTIONAL FUNDS

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 clearing house that acts as an intermediary between buyer and seller, receiving initial and maintenance margin from both, and guaranteeing performance of the option contract.

 

There were no open derivative instruments throughout the period or as of July 31, 2018.

 

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, 2018. Purchase and sale transactions and dividend income earned during the period were as follows:

 

Security

 

Shares/
Par at
October 31,
2017

 

Purchases/
Conversion

 

Sales/
Conversion

 

Shares/
Par at
July 31, 2018

 

Interest
Income

 

Realized
Gain (Loss)

 

Net Increase
(Decrease)
in
Unrealized
App(Dep)

 

Value at July
31, 2018

 

Alger Capital Appreciation Institutional Fund

 

 

 

 

 

 

 

 

 

Common Stocks

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Choicestream , Inc.*

 

124,658

 

—

 

(124,658

)*

—

 

—

 

$

(36,151

)

$

36,151

 

—

 

Preferred Stocks

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Choicestream, Inc., Series A*

 

1,074,935

 

—

 

(1,074,935

)*

—

 

—

 

(859,605

)

859,605

 

—

 

Choicestream, Inc., Series B*

 

2,500,538

 

—

 

(2,500,538

)*

—

 

—

 

(1,500,323

)

1,500,323

 

—

 

Warrants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Choicestream, Inc., 6/22/26*

 

574,662

 

—

 

(574,662

)*

—

 

—

 

(574,087

)

574,087

 

—

 

Corporate Bonds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Choicestream, Inc., 11.00%, 8/05/18*

 

574,662

 

—

 

(574,662

)*

—

 

—

 

(575

)

575

 

—

 

Total

 

 

 

 

 

 

 

 

 

—

 

$

(2,970,741

)

$

2,970,741

 

—

 

 

Security

 

Shares/
Par at
October 31,
2017

 

Purchases/
Conversion

 

Sales/
Conversion

 

Shares/
Par at
July 31, 2018

 

Interest
Income

 

Realized
Gain (Loss)

 

Net Increase
(Decrease)
in
Unrealized
App(Dep)

 

Value at July
31, 2018

 

Alger Capital Appreciation Focus Fund

 

 

 

 

 

 

 

 

 

 

 

Preferred Stocks

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prosetta Biosciences, Inc., Series D

 

76,825

 

—

 

—

 

76,825

 

—

 

—

 

—

 

$

230,475

 

Total

 

 

 

 

 

 

 

 

 

—

 

—

 

—

 

$

230,475

 

 

29


 

THE ALGER INSTITUTIONAL FUNDS

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

 

Security

 

Shares/
Par at
October 31,
2017

 

Purchases/
Conversion

 

Sales/
Conversion

 

Shares/
Par at
July 31, 2018

 

Interest
Income

 

Realized
Gain (Loss)

 

Net Increase
(Decrease)
in
Unrealized
App(Dep)

 

Value at July
31, 2018

 

Alger Mid Cap Growth Institutional Fund

 

 

 

 

 

 

 

 

 

 

 

Common Stocks

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Choicestream, Inc.*

 

8,930

 

—

 

(8,930

)*

—

 

—

 

$

(2,590

)

$

2,590

 

—

 

Preferred Stocks

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Choicestream, Inc., Series A*

 

77,008

 

—

 

(77,008

)*

—

 

—

 

(61,582

)

61,582

 

—

 

Choicestream, Inc., Series B*

 

144,793

 

—

 

(144,793

)*

—

 

—

 

(86,876

)

86,876

 

—

 

Prosetta Biosciences, Inc., Series D

 

166,009

 

—

 

—

 

166,009

 

—

 

—

 

—

 

$

498,027

 

Warrants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Choicestream, Inc., 6/22/26*

 

17,128

 

—

 

(17,128

)*

—

 

—

 

(17,111

)

17,111

 

—

 

Corporate Bonds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Choicestream, Inc.*

 

17,128

 

—

 

(17,128

)*

—

 

—

 

(17

)

17

 

—

 

Total

 

 

 

 

 

 

 

 

 

—

 

$

(168,176

)

$

168,176

 

$

498,027

 

 

Security

 

Shares/
Par at
October 31,
2017

 

Purchases/
Conversion

 

Sales/
Conversion

 

Shares/
Par at
July 31, 2018

 

Interest
Income

 

Realized
Gain (Loss)

 

Net Increase
(Decrease)
in
Unrealized
App(Dep)

 

Value at July
31, 2018

 

Alger Small Cap Growth Institutional Fund

 

 

 

 

 

 

 

 

 

 

 

Preferred Stocks

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prosetta Biosciences, Inc., Series D

 

133,263

 

—

 

—

 

133,263

 

—

 

—

 

—

 

$

399,789

 

Total

 

 

 

 

 

 

 

 

 

—

 

—

 

—

 

$

399,789

 

 

* The company was dissolved on December 20, 2017.

 

30


 

ITEM 2.  Controls and Procedures.

 

(a)  Based on their evaluation of Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) as of a date within 90 days of the filing of this document, Registrant’s principal executive officer and principal financial officer found Registrant’s disclosure controls and procedures to provide reasonable assurances that information required to be disclosed by Registrant in the reports it files under the Securities Exchange Act of 1934 (a) is accumulated and communicated to Registrant’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure, and (b) is recorded, processed, summarized and reported within the time periods specified in the rules and forms adopted by the U.S. Securities and Exchange Commission.

 

(b)  No changes in the Registrant’s internal controls over financial reporting occurred during the Registrant’s last fiscal quarter that materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

 

ITEM 3. Exhibits.

 

Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940 are attached as Exhibit 99.CERT.

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

The Alger Institutional Funds

 

By:

/s/ Hal Liebes

 

 

 

 

 

Hal Liebes

 

 

President

 

 

 

 

Date:

September 20, 2018

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:

/s/ Hal Liebes

 

 

 

 

 

Hal Liebes

 

 

President

 

 

 

 

Date:

September 20, 2018

 

 

 

By:

/s/ Michael D. Martins

 

 

 

 

 

Michael D. Martins

 

 

Treasurer

 

 

 

 

Date:

September 20, 2018

 

 

Exhibit 99.CERT

 

Rule 30a-2(a) CERTIFICATIONS

 

I, Hal Liebes, certify that:

 

1.              I have reviewed this report on Form N-Q of The Alger Institutional Funds;

 

2.              Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.              Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

 

4.              The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

(a)                     Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)                     Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)                      Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

(d)                     Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.              The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a)                     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

(b)                     Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date:  September 20, 2018

 

By:

/s/ Hal Liebes

 

 

 

 

 

Hal Liebes

 

 

President

 

 

The Alger Institutional Funds

 

 


 

Rule 30a-2(a) CERTIFICATIONS

 

I, Michael D. Martins, certify that:

 

1.              I have reviewed this report on Form N-Q of The Alger Institutional Funds;

 

2.              Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.              Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

 

4.              The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

(a)                     Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)                     Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)                      Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

(d)                     Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.              The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a)                     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

(b)                     Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date:  September 20, 2018

 

By:

/s/ Michael D. Martins

 

 

 

 

 

Michael D. Martins

 

 

Treasurer

 

 

The Alger Institutional Funds

 

 


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