Twenty-five years after the September 11 attacks claimed the lives of 35 employees, including chief executive David Alger, Daniel Chung rebuilt Fred Alger Management by returning to the firm’s core growth philosophy and rehiring trusted alumni. Today, the investment firm oversees more than $47 billion in assets.
The Bottom Line
- Resilience Built on Backup Infrastructure: A disaster recovery center in Morristown, New Jersey, engineered by the late CTO Michael Howell, allowed the firm to resume operations on September 13, 2001.
- Cultural Continuity Over Acquisitions: Rather than hiring external managers, CEO Dan Chung successfully recruited firm alumni—including Teresa McRoberts, David Hyun, and Jill Greenwald—to preserve the firm’s legacy and investment culture.
- Modern AI-Driven Expansion: Anchored by heavy positions in high-growth technology equities like Nvidia (NASDAQ: NVDA), the flagship Alger Spectra Fund (SPECX) now manages $4.5 billion, consistently outperforming peer categories.
Operational Continuity from a Platinum Standard Recovery Center
On the morning of September 11, 2001, then-tech analyst Daniel Chung was in Midtown Manhattan at the Intercontinental Hotel, preparing for a corporate presentation. At 8:46 a.m., the North Tower of the World Trade Center was struck. Fred Alger Management’s headquarters occupied the 93rd floor.
The tragedy claimed 35 lives, devastating the firm’s executive and analytical ranks. Founder Fred Alger came out of retirement and installed Chung as chief investment officer. The immediate survival of the firm depended on rapid operational recovery.
That recovery was secured by prior infrastructure planning. Michael Howell, the firm’s chief technology officer who died in the attacks, had established a backup facility in Morristown, New Jersey. The secondary trading floor replicated the headquarters setup down to individual seat layouts. Because client records, proprietary models, and trading systems remained intact, Alger resumed operations on September 13.
Rebuilding Through Alumni and Refusing Outside Consultants
In the immediate aftermath, business consultants advised Chung to recruit star portfolio managers from competitor institutions. Chung rejected that strategy. He chose instead to protect the firm’s cultural identity by reaching out to former Alger analysts who understood the firm’s specific growth-stock philosophy.
Alumni answered the call. Healthcare analyst Teresa McRoberts returned to the firm, and David Hyun left Oppenheimer Funds to rejoin. Small-cap portfolio manager Jill Greenwald approached Chung directly at a memorial service for Ginger Risco, an Alger staff member who also died on the 93rd floor.
This strategy insulated the firm’s investment philosophy, which dates back to founder Fred Alger’s 1964 launch. Fred Alger pioneered revenue-acceleration stock picking, famously competing with traditional value investors by stating, “You can go broke buying cheap stocks,” according to firm history.
Financial Metrics and Portfolio Positioning
Over the subsequent 25 years, assets under management at Alger expanded past $47 billion. The flagship Alger Spectra Fund (SPECX) holds $4.5 billion in total assets. Recent performance metrics highlight the efficacy of the firm’s technology-focused growth strategy, with SPECX ranking in the top 4% of its category last year and the top 2% in 2024, according to Morningstar data.
| Metric / Fund | Data Point | Context / Ranking |
|---|---|---|
| Total Firm AUM | $47 Billion+ | Expanded significantly over 25 years post-9/11 |
| SPECX Total Assets | $4.5 Billion | Flagship Alger Spectra Fund |
| SPECX Category Ranking (2024) | Top 2% | Morningstar Category Performance |
| Nvidia Holding Weight | 14% of Assets | Top holding in SPECX as of June |
Chung maintains a bullish stance on artificial intelligence infrastructure. He notes that current high valuations reflect genuine computing power shortages rather than speculative market bubbles. According to Morningstar disclosures, Nvidia (NASDAQ: NVDA) represents 14% of the Spectra fund’s assets. Additional high-conviction growth holdings include CrowdStrike (NASDAQ: CRWD) for cybersecurity, memory chipmakers Western Digital (NASDAQ: WDC) and Micron Technology (NASDAQ: MU), and neocloud provider Nebius Group.
“We are still in the early years of what will be probably almost a full decade” of AI-driven growth, Chung said, comparing the current market cycle to 1995 rather than the peak of 1999.
Institutional Legacy and Charitable Integration
The rebuilding of Alger permanently altered the firm’s corporate structure and philanthropic commitments. The firm established the Alger 35 ETF, composed of 35 high-conviction equity ideas corresponding to the 35 colleagues lost on 9/11. A portion of management fees from this fund is donated directly to charities honoring David Alger and his colleagues.
Reflecting on the quarter-century recovery of both the firm and New York City, Chung emphasizes institutional resilience. “Look at how well New York has done. Look at how well America has done, actually. And look at how well Alger recovered,” Chung said. “I think it’s a reminder… that there’s a lot of good in this world.”
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
