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Daniel C. Chung

lines on the record: 105
first: 2022-06-03
most recent: 2022-06-03
sittings or episodes: 1
sources: podcast

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“And so they're not only unaware of how things might work in other sectors, they can get completely blindsided when say a business model or a practice in one sector jumps over into another sector.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“Makes a lot of sense. And now that I'm, I guess, I'm at the level that I'm at, I know this because often when I'm doing training sessions or discussions with the younger end of our analysts, I can see how they've kind of myopically focused on a very set of narrow metrics or very set way that an industry works.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“I think because when you see what works in your sectors, my key sector was tech and e-commerce. Which I led for Algern in the 90s. What you see what works there, and then you don't realize, well, does it work in another sector? Maybe it will, and maybe it doesn't. That's very important learning when you are a portfolio manager. Or, as I am really trying to make sure that my analysts are better analysts, because I think if you learn what doesn't work in other sectors, how they work as well, I think it will come back in some way and help you understand your own sector better.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“I think that I was so focused on what was put in front of me. Which was technology that I didn't really learn much about other sectors or other styles of investing. Now, being that I was at Alger, my boss and everybody around me did not learn about value investing. And I'm okay with that part, right? But I think I wish I had learned more and listened more. What the healthcare guys were saying about healthcare investing. And frankly, there wasn't that forum at work. And maybe I'm thinking now, maybe it still isn't like that, and maybe I should help create one. I try, but I realize a lot of times, you know, if you're the tech guy, you just tune in for the tech. And when the person starts talking healthcare, you tune out.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“And so you need to know the details and the depth, and you need to do that consistently through a period of time that matters for our business. Otherwise, you're going to be superficial and shallow and you might find yourself floating around to much longer than you ever thought you would.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“And then they add up to weeks, months, quarters, years. And frankly, you can have a 50 plus year record like Alger and then have a horrible six months. And you're like, wow, did we get out? Did we get out too far over our skis? I don't think we did, but it's a challenging business.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“Quite interesting Do not go on Robin Hood and just trade stocks. I would say you want to try to start your career. This is important at a place with a disciplined investment philosophy. This is not a place an industry where I think going with the startup or the kind of small shop is necessarily a good place. I do think a lot of the value that the larger firms You can become very articulate on the surface, but our businesses are a really tough one. I mean, it is tough as competitive professional sports because a number gets put up. Ours is worse. We get a number every day. Even professional athletes don't play every day. That's right. We get a number every day.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“It's a story of a woman who has to flee her country because of drug trafficking. It's like the journey to America from that perspective. And it's a pretty amazing novel, I think.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“I finished reading a book given to me by my brilliant daughter who is going to a PhD in English literature by an author named Ocean Vong. Yes, there's an Asian American theme going on here, although that's unusual for me, actually. I am reading a book on environmentalism, actually, and I cannot remember the name. It was sent to me by somebody at Stanford University. It's about, you know, what we need to do to make a more sustainable world and how difficult it would be, but why we should do it anyway. And I wish I could remember the name.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“Oh, I was an English major in college. I should have said I did do a lot of reading during. I didn't just watch Netflix and Game of Thrones. I did a lot of reading. Right now I am reading The Committed, which is the second book after the sympathizer by a Vietnamese author whose name I can't quite remember.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“I'll take the training and then I'll probably need to go somewhere else to get my sense of, you know, that I'm not just some guy. But those guys, Ron and Cly, they treated me like everybody else in both the good and bad ways. So did David. David's probably a little, I mean, David once actually told me he was a little harder on me than anybody else because he had to be, which included like yelling at me in public and stuff like that. I mean, he was a very colorful guy, but he did have a... He did like to yell when you made a mistake, but he would also stand up in front of 500 people and say, that's the best tech analyst on the street right there.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“So I said, like he said, like, you're going to have a year where you're not on the bulletin board, and then you're all going to be on the bulletin board. And if you don't look out on the bulletin board, you'll know it. And I said, I will leave. He said, you won't have to. And I said, I'm going to leave if I'm not any good at this. So I actually did go in thinking.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“But David Alger absolutely. And, you know, really Ron Tartaro and C Laiku, I work for Ron. He was an analyst when I worked for him as his junior. He then became a portfolio manager in CLICU was a leading tech analyst who became a portfolio manager. Both of them, well, actually all three of them died on 9-11. They were so, you know, I'll be frank. I mean, I was a little, it took quite a long time to get me to come to the company because I did not like the idea of going to be the son-in-law. And he did show me some stuff. I met these people. And then one of the things he showed me about the meritocracy is we managed individual analyst performance very rigorously. And he said, this is posted on the bulletin board.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“And there's a show where we actually replayed the show a couple times because it's just too funny where he asks viewers to call him what are the three greatest rock bands of all time And a music teacher calls in, and on that music teachers list is rush.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“That's it. So, yes, a lot of it is nonsense, and it's funny, but we have sometimes like no. But the interviews that he's done of rock stars.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“When it's five different kingdoms and Vikings are raiding England. And it's kind of like the English have to unite into a country if they're going to fend off the Vikings, who are part of the awesome warriors. And the Vikings are basically trying to figure out. We like raiding, but is this really a sustainable lifestyle? So my wife.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“Brother dies in Spain somehow, sister from England goes to Ibiza to try to find. But I realize now there is a theme here. I love travel. I think a lot of these shows during COVID were a nice way to sort of see.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“And I love Italy. So you see, it's shot in Italy. I guess it's Italian and translated. So I love a lot of these shows that are, there's this ridiculous one from Denmark. It's about a prime minister. There's a lot of foreign TV that's now being dubbed or whatever into English that I find kind of quite interesting because it's like all my agent.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, the movie is a great movie. Very, very nice portrait of whatever. But Roma, I think, yeah, it's called Roma. It's like it's a little bit like Narcos. Except set in Italy”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“If you're a sci fi junkie, I I also have to say, new girl. I love that show. I think Zoe Deshanel is just. Yeah, she's hilarious. Hilarious.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“By the way, season three of the boys is coming on Amazon. Looking forward to that. That's a good one. But I'll give you one that I'm like, I'm not sure why I'm still watching it, but it's because there's eight seasons of it. So I'm like, in my mind, this is actually a bit of a researcher mind. If there's eight seasons, some audience must understand why, even though the expanse.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“Doesn't hurt, and we have at least one person who might actually be a rocket scientist, but you have a doctor who's definitely a, so I.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah. And while I'm much in favor of education, there's nothing that replaces passion and drive. You don't need to be a rocket scientist to do well in our industry”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“There you go. And so, in some ways, it was nice because the people who found their way to the industry, and a bit like me, we had no formal training. We weren't going there because it was a major or something like that. We were going there because somehow we had found it and we had fallen in love with it. Today, of course, you know, it's very different. You've got undergraduates that are taking investing courses, and that's all well and good.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“Today, I think today we are also, of course, more aware in making sure that as we recruit, as we mentor, and as we promote that, we're recognizing people that way. But we've always had a very diverse Leadership. The firm has always been very meritocratic. And we've always had a culture of people sort of coming from different industries and wanting to prove themselves. And often those people who come from different industries are the ones who sort of really passionately get into the stock market. One of the biggest changes I'd say in the last 30 years in my career is the industry has become more professional. There weren't investment management programs at business schools, and certainly the undergraduate was completely uninterested in what we did.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“So we've had a robust training program that has gone on for decades and is really widely recognized, and many of our leading PMs are actually from that program, as I was when I changed careers. The meritratic part is about recognizing, and I think our clients benefit directly from it, that as a boutique investment firm, specializing in growth, we need to be significantly better than our competition, many of whom are much larger or they're part of a big bank, or at least they're part of an asset manager that has trillions of dollars, right? Does many different. We need to be much better in our specialty than the competition. And the way you're going to get that is if you recognize and promote within your organization the people who simply deliver the best results without much regard to anything else. And that has long resulted in what you see.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“So it comes from two things that are very, very ingrained in our culture and old and maybe one that's newer. The two old things are the firm has always had a meritocratic culture and a belief that if you followed our investment process and philosophy that anyone who was hardworking, smart, and of course motivated could become a great investor and in particular part of”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“The person who gets the most from giving is often the person who's supposed to be the giver. Yeah, I get more back than I'm really giving. So that's it. And then the final thing is we do support some art and things like that, but it's the arts that are more community-based, smaller. I love the big institutions, but I don't believe that we make as much of an impact there as we do as if we support more community-based smaller local organizations.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“Secondly, we're trying to recognize and support charities where we're not just giving money, we're giving of our time or our talent or in some ways doing something that maybe helps trigger in, frankly, in our own individual, myself and the Alger employees, our appreciation for how lucky we are. Because there's nothing like doing something, whether it's planting trees or habitat for humanity and helping build a home for someone or going to a Harlem Educational Fund and seeing kids who didn't have the economic opportunities and education that we had, right? So I always believe that seeing that is good for a person makes them appreciate the world around them, but also how lucky they generally are. And so it's, you know, they always say that.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“We continue to support essentially every charity that is an Alger 35, as well as many more. And I think a few years after 9-11, I sort of formalized it with the creation of a employee committee. We call it the candlelight committee. So employees run that. And I think the two things I request that they do and we still focus on is we're trying to make an impact in our community when we can. So helping more locally rather than, say, globally.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“But I could not believe some of the families that we saw after 9-11. They lost their only son, their daughter. And they are heartbroken, but they are actually also wanting to help. And many of them, the first thing they did was create charities in their kids' memories or in their husband's memory husbands were lost and moms and everything. And we just realized our mission has to be to support these families. And part of that is to support them in the memory of their lost ones. So the charitable efforts since then, I mean, obviously just multiplied by magnitudes”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“And so I took over the firm and led the rebuilding of the firm after 9 11. And of course, the first thing we dealt with was really the families who had lost someone. And these were, I mean, this is just an amazing generation of people. And I think that I think I remember even in the darkest times, and it's important for us, is really good people far outnumber bad people. You know, we've seen some horrible shootings over the weekend, right?”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“So, yeah, I mean, September 11th, again, we lost 35 people, including David Alger, who was my boss. He was the CEO and CIO of Alger and a lead portfolio, just like I am today”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, we're still looking at what are the fundamental opportunities to buy the best growth companies that will grow right through this, but we're also cognizant that in the near term, a lot of uncertainty. Nobody really knows what will happen, right?”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“I've been surprised that we haven't seen a major cybersecurity tech as part of the Russian Ukraine conflict. But we'll see. We know that they're happening. Maybe the good thing is that we haven't experienced it because we're getting great defense from some of the new generation of cybersecurity companies that are defending us, literally. And so that's the part where I think being more diversified, looking for opportunities across sectors. So for example, I mentioned financial services earlier. One thing to note is financial services and technology are almost acting like hedges to each other. When tech is up, financials are down. When financials are up, tech is down. And again, it has a lot to do with interest rates. Sure. I think”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“Exactly. And we know from our experience as investors that if we're not quite there, we're getting close to, you need two things. Yes, I want to see better valuations, and we're seeing them. But I also want to see timing. I want to see some fundamental changes in the market that says the sentiment is shifting. Because the nature of investing is, yes, it's quantitative and qualitative. Right now, clearly the negative narrative is overwhelming and it's natural. A lot of investors are, I earlier said how many things have changed and there's so much change going on. And a lot of it seems negative.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“Right through it, double digits, even as the department stores were falling apart. What we're trying to identify now, fundamental bottom-up stock pickers, is what are the companies that are in the right trends that are going to grow regardless?”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“So, as a fundamental investment team, bottoms up fundamental, right? So we have sector experts, analysts, and portfolio managers with extensive experience across every sector. Our healthcare sector head Is actually a doctor, a PhD, and an MBA is all three degrees. Most degreed person I think I've ever seen, except for maybe one of my PMs who also has a PhD and a bunch of other degrees and patents. So what we're looking at is the trends, right? The big economic, the big business trends, the big societal trends that are growing regardless of, yes, near-term economic cycles. So one thing that many people did experience was in 08-09, e-commerce continued to grow right through that recession. And that was a crushing recession.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“I think it's definitely a target rich environment. We're increasingly getting excited about the opportunity to build larger positions in these high growth names. But in our experience, and it's pretty extensive since 1964, and mine personally since 1994, you can overshoot to the downside.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“Over 70. I mean, I'm looking at a list of holdings that we have. Yes, they are still expensive on near-term multiples. Some of them, of course, are only just now ramping in profitability. So the PE multiples are essentially not meaningful. But that is the wrong way to look at higher growth names. Companies that are growing 40, 50, 70 percent, say, this year are likely to be probably growing in our view 25% for the next few years. So you have to be able to look out and value them on that future earnings.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“So I sort of have three answers. One is I think leading growth names, like so the larger cap names, have gotten to valuations where historically and relative to the market, they are very attractive. The higher growth names, some that have been hit the hardest, these are a little trickier. Many of these are cloud computing names, cybersecurity names, part of the new generation of digital business enterprise software. They have very high growth rates. We should note that in this entire decline, we've now had two quarters, the fourth quarter of 2021 and the first quarter of 22, they're pretty much all done. And these most, by and large, over 80% of the companies, they're hitting their numbers and growing at rates 50%, 40%.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“So it's new, and I think the major theme at Alger is as growth specialists, we want to be offering our services, investment services, in whatever format or context, the clients want them. And in particular, keeping up with what lowers costs increases transparency for the clients. And ETFs actively ETFs are the first opportunity to do that for an active manager. We're not interested in offering passive index ETFs. And so it's been interesting. They're both just barely a year old and still small, but we see a lot of interest from in particular financial advisors on larger platforms. Who have clients who are interested in the ETF format.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“No, actually, so Dynamic Return, Dynamic Opportunity, and actually Spectra does a little bit of shorting Spectra can do up to 10% short.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“And we are donating a part of a management fees to charities either in their memory or that we or the firm support today in their memory. But 35 is meant to reflect the best ideas across all of Alger. So regardless of market cap, regardless of whether it's US or international, best ideas, focused fund. And so that's the Alger 35 idea. Capital appreciation is a large cap strategy. Spectra is an all-cap strategy. Both of those are really very much US oriented, although they can invest in international or foreign stocks. And then finally, dynamic return. Dynamic return is a hedge fund. And so it's our private version of a hedge fund. We also have a Fortiac Mutual Fund called Dynamic Opportunities Hedge Fund.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“So Alger 35 is actually very special to us. There's a fund and it's also one of our first ETFs, Alger 35 ETF, which we launched actually in just last year. It's named actually in memory and honor of the 35 colleagues we lost on September 11th.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“So, as growth specialists, all of these strategies reflect basically different market caps and market cap ranges, with the exception of the healthcare fund and dynamic opportunities. Dynamic opportunities is a hedge fund. So long short. And a healthcare fund obviously is a sector fund.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“Preventing the next COVID pandemic, but also for how can we improve the telemedicine, how can we improve outcomes in the healthcare system? It's been a big challenge to the healthcare system, but I guess appropriately they're getting rewarded by a lot of interest in investing in that to improve it, right? But they're again, going back to financials, there's a lot of banking, there's a lot of banking opportunity in that.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“They do well as a Silicon Valley doesn't go bankrupt as a whole. You know, the fact that some company's stocks are up or down doesn't actually do anything for them. In fact, if anything, the potential for deal making increases, of which they are often the banker. And I should note they did an extremely savvy acquisition of a healthcare franchise a few years ago, one of the leading investment banking healthcare franchises. And again, as I noted, healthcare is a very active area. We should note that not only is it not economically sensitive, but healthcare because of the COVID crisis has received a huge boost in funding, recognition, and interest in investment for the future, not just for”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“Silicon Valley Bank has long been a leader in the Silicon Valley. Obviously, all of their tech customers' stocks are down, so people are taking their stock down. But actually as bankers”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source
“Example, others are there are growthier banks that have been hit pretty hard recently. Many of them are now trading as if they were sort of. You know, like just any regular bank, the ones that we like are the ones who have been innovative within banking. Give us a few names.”
2022-06-03 · Masters in Business · Daniel C. Chung on Probability Theories for Investors · IDENTIFIED FROM THE TRANSCRIPT · source