November 17, 2021

Alger is widely recognized as a pioneer of growth-style investing.

Energized

During the past 70 years, the U.S. has become better at using less energy to produce more
goods and services. This trend is illustrated by energy intensity, as measured by the ratio of
energy consumption to GDP, which has declined 63% since 1950. This increase in productivity
could potentially help dampen the recent impact of higher oil and gas prices on the U.S.
economy and corporate earnings. With technology helping drive increased domestic energy
production, we believe, higher prices may even potentially support the economy by driving
growth in capital expenditures by energy companies.

Alger On the Money

Inspired by Change, Driven by Growth.

Alg

er is committ

ed to

sustainability and is a signat

ory

the PRI.

•

A lot has changed since the 1970s when the U.S. experienced an oil supply shock that drove

significant inflation. Our new digital economy is less energy dependent and we believe data is the

new oil. At the same time, automobiles, buildings and manufacturing have become more energy

efficient.

•

Energy, while being less of an input cost for companies, may even be more likely to support GDP

growth as higher prices cause energy companies to potentially increase their capital expenditures

to produce more. We believe, the increase in capital expenditure may exceed the extent to which

higher energy prices limit consumption.

•

We don’t think investors need to be overly concerned with higher energy prices crimping the

economy, but we do believe there is opportunity in growth-oriented technology providers to oil

and gas companies to help optimize well drilling and other areas of upstream exploration and

production. Additionally, as the price of solar or wind energy becomes cheaper relative to prices

for oil and gas, higher hydrocarbon prices may help spur activity in alternative energy solutions, in

our view.

Energized

During the past 70 years, the U.S. has become better at using less energy to produce more

goods and services. This trend is illustrated by energy intensity, as measured by the ratio of

energy consumption to GDP, which has declined 63% since 1950. This increase in productivity

could potentially help dampen the recent impact of higher oil and gas prices on the U.S.

economy and corporate earnings. With technology helping drive increased domestic energy

production, we believe, higher prices may even potentially support the economy by driving

growth in capital expenditures by energy companies.

U.S. Energy Intensity

Source: U.S. Energy Information Administration, Haver Analytics, Deutsch Bank. Note: Energy intensity is calculated using the

ratio

of energy consumption to real GDP.

2020

100

120

2015

2010

2005

2000

1995

1990

1985

1980

1975

1970

1965

1960

1955

1950

1970=100

Fred Alger & Company, LLC

360 Park Avenue South, New York, NY 10010 / www.alger.com

800.305.8547

(Retail)

/ 212.806.8869

(Institutional)

AOM254

The views expressed are the views of Fred Alger Management, LLC as of November 2021. 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 Fred

Alger Management, LLC. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities.

Risk Disclosure:

Investing in the stock market involves certain risks, including the potential loss of principal. Growth stocks tend to 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. Technology companies may be

significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Local, regional or

global events such as war, acts of terrorism, the spread of infectious illness such as COVID-19 or other public health issues, recessions, or other events could have a significant

impact on investments.