How Companies Adapt in the Age of AI Adoption

With AI adoption top of the mind for advisors and investors alike, some may be wondering which companies will be leading the pack when it comes to adopting AI into their workflows.

Dr. Ankur Crawford, Executive Vice President and Portfolio Manager at Alger, recently discussed this topic in a wide-ranging conversation on the Alger Podcast. On the podcast, Dr. Crawford assessed that past precedent may not determine which companies are going to be the strongest beneficiaries of artificial intelligence. As she notes, in times of great technological change, not only do new disruptive companies emerge, but new industry leaders as well.

“The question isn’t if you’re adopting now, it is the pace of adoption and how quickly can you actually cross this chasm,” Dr. Crawford added. “And there are going to be some companies that are more amenable to the change because of, perhaps, their tech infrastructure. There are other companies that are going to struggle and are going to need a lot of help.”

Going further, Dr. Crawford noted that there have been significant discrepancies in the pace of AI adoption for companies across a wide variety of sectors and industries. These nuanced differences, in Dr. Crawford’s view, further solidify the importance of active management for its flexibility and ability to leverage experienced fund managers.

CNEQ Shows How Active Stock Picking Has Paid Off

The Alger Concentrated Equity ETF (CNEQ), managed by Dr. Crawford herself, looks to offer compelling long-term capital appreciation through a tightly concentrated equity portfolio.

Notably, CNEQ approaches stock selection by focusing on fundamental research. The fund doesn’t tie itself to any particular index, instead relying on the expertise of its investment team to find the companies they believe are best positioned to deliver long-term growth.

CNEQ does offer a sizable tilt towards technology exposure. As of September 30th, 2025, the Information Technology and Communication Services sectors constituted about 52% and 15%, respectively, of CNEQ’s portfolio.

So far, CNEQ’s approach to large-cap investing has seen positive results this year. Year-to-date, the fund’s NAV has risen 37.61%, as of November 10, 2025.

For more news, information, and strategy, visit the Artificial Intelligence Content Hub.

Click here for standard performance and more information on the Alger Concentrated Equity ETF.

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Disclosure Information

Performance data quoted represents past performance and is no guarantee of future results. DUE TO MARKET VOLATILITY, CURRENT PERFORMANCE MAY BE DIFFERENT THAN THE FIGURES SHOWN. Investment return and principal value will fluctuate so that an investor’s shares, when sold in the secondary market, may be worth more or less than original cost. Returns less than one year are not annualized. Performance does not reflect the deduction of commissions, which a broker may charge to execute a transaction in Fund shares, and an investor may incur the cost of the spread between the price at which a dealer will buy shares and the price at which a dealer will sell shares. Market performance is determined using the official closing price on the New York Stock Exchange. Market performance does not represent the returns you would receive if you traded shares at other times. To obtain performance data current to the most recent month end, please visit www.alger.com. Index performance does not represent the fund’s performance. Investors may not invest directly in an index.

Performance shown is net of fees and expenses.

The views expressed are the views of Fred Alger Management, LLC (“FAM”) and its affiliates as of November 2025. These views are subject to change at any time and may not represent the views of all portfolio management teams. These views should not be interpreted as a guarantee of the future performance of the markets, any security or any funds managed by FAM. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities. Holdings and sector allocations are subject to change. Past performance is not indicative of future performance.

Risk Disclosures: Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be concentrated in securities in related industries, and may be similarly affected by adverse developments and price movements in such industries. A significant portion of assets may be invested in securities of companies in related sectors, and may be similarly affected by economic, political, or market events and conditions and may be more vulnerable to unfavorable sector developments. The Fund is classified as a “non-diversified fund” under federal securities laws because it can invest in fewer individual companies than a diversified fund. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment. At times, cash may be a larger position in the portfolio and may underperform relative to equity securities.

ETF shares are based on market price rather than net asset value (“NAV”), as a result, shares may trade at a price greater than NAV (a premium) or less than NAV (a discount). The Fund may also incur brokerage commissions, as well as the cost of the bid/ask spread, when purchase or selling ETF shares. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility and disruption in the creation and/or redemption process of the Fund. Any of these factors, among others, may lead to the Fund’s shares trading at a premium or discount to NAV. Thus, you may pay more (or less) than NAV when you buy shares of the Fund in the secondary market, and you may receive less (or more) than NAV when you sell those shares in the secondary market. The Manager cannot predict whether shares will trade above (premium), below (discount) or at NAV. The Fund may effect its creations and redemptions for cash, rather than for in-kind securities. Therefore, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Fund shares may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely in-kind. Brokerage fees and taxes will be higher than if the Fund sold and redeemed shares in-kind. Certain shareholders, including other funds advised by the Manager or an affiliate of the Manager, may from time to time own a substantial amount of the shares of the Fund. Redemptions by large shareholders could have a significant negative impact on the Fund.

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Before investing, carefully consider a Fund’s investment objective, risks, charges, and expenses. For a prospectus and summary prospectus containing this and other information or for a Fund’s most recent month-end performance data, visit  www.alger.com, call (800) 992-3863 (for a mutual fund) or (800) 223-3810 (for an ETF), or consult your financial advisor. Read the prospectus and summary prospectus carefully before investing. Distributor: Fred Alger & Company, LLC. All underlying series of The Alger ETF Trust listed on NYSE Arca, Inc. NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE.

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