Defying assumptions, Dan Chung, chief govt officer of Fred Alger Administration, rebuilt the funding staff and, certainly, all the cash administration agency after it misplaced 35 folks within the assaults on the World Commerce Middle on Sept. 11, 2001.
CEO David Alger had perished within the North Tower, and Chung, who had simply turned 39, instantly grew to become the agency’s chief. Founder Fred Alger, David’s brother, was retired and residing in Switzerland.
“If you wish to speak about which companies had the very best enterprise restoration after 9/11, I feel Alger can be among the many High 10 of any business,” Chung says in an interview with ThinkAdvisor. “Within the funding world, I feel we’re No. 1.”
Chung, who not too long ago acquired a 2023 ThinkAdvisor LUMINARIES award for neighborhood impression, discusses management classes he realized on the helm of the growth-investing boutique in addition to current tendencies capitalized on, similar to actively managed ETFs.
Chung, now 61, who grew to become CEO in 2006 after his appointment as president three years earlier, brings up a number of of his management “weaknesses,” as he calls them, and advises hiring gifted folks to “complement” any shortcomings.
“I do know that I’m not a pure gross sales [and marketing] govt …,” he says. “Maybe if I had been [one] with a lot of that have, as a substitute of the agency [managing assets of] $22 billion at the moment, we might be at $60 billion.”
Chung joined Alger in 1994, after 4 years as a lawyer. Earlier than taking up, he served as a senior analyst on the funding staff, portfolio supervisor and head of know-how.
Within the cellphone interview with Chung, who was talking from his workplace at Alger headquarters in New York, he notes his excessive hopes for synthetic intelligence, “a megatrend,” which, he says, will assist advisors “the place used accurately.”
Listed below are excerpts from our dialog:
THINKADVISOR: When Fred Alger Administration misplaced 35 folks on 9/11, amongst them David Alger, the agency’s chief, you instantly grew to become chief funding officer and head of the agency. What was the business saying about Alger’s future?
There was a whole lot of doubt on Wall Avenue whether or not we might survive. Most anticipated us to exit of enterprise.
Most consultants and advisors put us on maintain or terminated us. They weren’t investing new cash with us for a number of years, watching whether or not we may survive.
In 2006, you had been named CEO. What’s your greatest management success?
Rebuilding the funding staff, producing funding efficiency, rebuilding the agency and finally successful again purchasers.
We had been one of many hardest-hit companies [on 9/11] and, as a boutique, not one of many greater ones.
However if you wish to speak about which companies had the very best enterprise restoration after 9/11, I feel Alger can be among the many High 10 of any business. Within the funding world, l assume we’re No. 1.
Have you ever made any management errors?
Not a mistake — however maybe if I had been a gross sales and advertising and marketing govt with a lot of that have, as a substitute of the agency [managing assets of] $22 billion at the moment, we might be at $60 billion.
What current tendencies have you ever aggressively capitalized on?
We attempt to not comply with tendencies for the sake of tendencies. We attempt to take heed to our purchasers, and after we see a requirement for one thing, we need to meet it.
For instance, beginning in 2020, we launched actively managed ETFs. That’s been giving traders preferring the liquidity and tax effectivity of ETFs a method to spend money on a number of of our methods that had been in mutual funds.
We’re additionally seeing curiosity amongst traders in U.S. progress equities abroad, similar to in Europe and Asia. So we’ve been investing in these and employed two senior vice presidents to move enterprise growth.
What tendencies do you see on the horizon?
I and the remainder of the funding staff are very targeted on AI and the way it’s going to development for a lot of industries, services and products.
We see AI as a megatrend that’s driving funding alternative on all ranges and in all sectors.
How will or not it’s utilized in enterprise?
AI may have purposes each internally for companies to enhance their advertising and marketing and gross sales, and manufacturing and logistics effectivity.
It’s additionally going to create a whole lot of alternative for firms that present the know-how, whether or not it’s software program, {hardware} or knowledge analytics.
We’re very within the AI development and who would be the suppliers of know-how and companies which can be powered by AI, in addition to how it is going to be utilized and what firms will profit from it.
How will AI profit monetary advisors?
It may actually assist advisors, the place used accurately, in servicing purchasers and conserving them higher knowledgeable and in serving to advisors grow to be extra environment friendly within the again workplace.
However it’s positively going to be a problem. The place you’re not in a position to compete on a know-how foundation, you’ll be able to compete on a unique foundation, like personalised service and understanding your purchasers. I don’t assume AI will likely be up for that job for a very long time.
What management classes are you able to share?
Recognizing that having a tradition that rewards onerous work and efficiency, a meritocracy, is essential. We let expertise rise by the ranks after they’re fairly younger.
