Space, The Next Frontier? by Alger

Investors looking beyond mega-cap AI winners, might now be considering underappreciated opportunities. And one such area that we’re looking at today is mid caps.

Much of the current conversation around AI has focused on U.S. companies — where the best investments may lie and what risks could derail the story. But what about opportunities outside the U.S.?

In this conversation, Redwood portfolio managers Alexi Makkas and Don Smith break down how governance reforms, capital return frameworks, and evolving policy environments are shaping international markets, and how these changes may be creating new investment opportunities outside the U.S.

"We think these disruptive businesses with disruptive leaders are coming in with a low-cost structure and using AI technologies to take share and grow healthy businesses. And we're seeing a lot of these are in the mid-cap space." Mid Cap Growth Portfolio Manager Brandon Geisler discusses the newfound attention that mid cap companies are now having in the AI conversation.

"During moments of volatility there is often a strong psychological impulse to 'do something', but reactive trades in the early days of a geopolitical crisis have historically been a source of regret, not alpha." Portfolio Manager Ezra Samet shares his views on the recent U.S. conflict in Iran.

"I think this industrial resurgence is being driven by a real need for investment, whereas with the tech bubble, there was a lot of spare capacity. Today, AI-driven companies need more power on the grid and more manufacturing capability, and that’s what this business spending is about." Alger Director of Market Strategy Brad Neuman discusses the new industrial renaissance and what that may mean for investors.

"We are in a new world and that requires a completely different mindset. The question isn’t if you’re adopting now, it is the pace of adoption and how quickly can you actually cross this chasm." Alger Portfolio Manager Dr. Ankur Crawford discusses AI, the metaverse, humanoid caregivers, stablecoin, and whether or not Apple should buy OpenAI.

"We think one of the most exciting non-U.S. inefficient areas is in smaller caps, because in small caps, you're layering on the geographic opportunity as well." The Alger Redwood team takes a closer look at Europe, Japan and China and review their thesis on how investors might better take advantage of non-U.S. market inefficiencies.

"The inefficiencies outside the U.S. are significant. International markets are more fragmented and offer opportunities that are very exciting. Even when macros are against us, we’re finding businesses that we want to own." The Alger Redwood team takes a deep dive into international opportunities that U.S. investors may be missing.