Is Alger Capital Appreciation Institutional Fund I (ALARX) a Strong Mutual Fund Pick Right Now?

If you've been stuck searching for Large Cap Growth funds, consider Alger Capital Appreciation Institutional Fund I (ALARX) as a possibility. ALARX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.ObjectiveWe classify ALARX in the Large Cap Growth category, an area rife with potential choices. Large Cap Growth funds invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. To be considered large-cap, companies must have a market cap over $10 billion.History of Fund/ManagerALARX is a part of the Alger Funds family of funds, a company based out of New York, NY. Alger Capital Appreciation Institutional Fund I debuted in November of 1993. Since then, ALARX has accumulated assets of about $951.95 million, according to the most recently available information. A team of investment professionals is the fund's current manager.PerformanceObviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 18.28%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 41.1%, which places it in the top third during this time-frame.It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 13.1%, the standard deviation of ALARX over the past three years is 19.68%. The standard deviation of the fund over the past 5 years is 21.59% compared to the category average of 14.8%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsWith a 5-year beta of 1.22, the fund is likely to be more volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. Over the past 5 years, the fund has a negative alpha of -0.23. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.ExpensesCosts are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, ALARX is a no load fund. It has an expense ratio of 1.26% compared to the category average of 0.94%. So, ALARX is actually more expensive than its peers from a cost perspective.Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.Bottom LineOverall, even with its comparatively strong performance, worse downside risk, and higher fees, Alger Capital Appreciation Institutional Fund I ( ALARX ) has a high Zacks Mutual Fund rank, and therefore looks a good potential choice for investors right now.This could just be the start of your research on ALARX in the Large Cap Growth category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (ALARX): Fund Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks