How a Winning Fund Gets Big Returns From Smaller Stocks

In late January, George Dai warned his colleagues at Weatherbie Capital that updates he was getting from family, friends, and social media in China indicated that the coronavirus—and its economic impact—were far more serious than the prevailing view.

“We decided to take two defensive steps,” says Dai, who grew up in China and moved to the U.S. in 1989 to get a Ph.D. in chemistry from Johns Hopkins University.

First, his team cut their exposure to companies whose revenue or supply chains have close ties to China. Then the group of six managers and analysts went through all 50 holdings in the $883 million Alger Weatherbie Specialized Growth fund (ticker: ALMAX) to reassess each company’s financial wherewithal and upgrade the portfolio accordingly. Read more…..


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