Finding Tech Stock Gems in Mid-Cap Companies Amid Downturn

Amy Zhang, a top mid-cap manager, focuses on smaller companies with revenue of $500 million to $1 billion that generate strong free cash flow and operate in large enough markets to take share. Zhang's Alger Mid Cap Focus fund targets mid-cap companies with market capitalization between $2 billion and $10 billion, but she prefers to measure by revenue. These companies, in their "third or fourth inning," have potential for compounding growth, she says.

In the dynamic world of finance, identifying growth opportunities in mid-cap companies can be a challenging yet rewarding endeavor. One mid-cap manager who has mastered this art is Amy Zhang, Executive Vice President and Portfolio Manager of Alger's Small Cap Focus, Mid Cap Focus, Mid Cap 40, and Small Cap Growth Strategies [1]. With over 26 years of experience and a track record of strong performance, Zhang has earned numerous accolades, including the "Active US Equity Manager of the Year" award from Women in Asset Management in 2021 [1].

Zhang's investment philosophy is centered on smaller companies with revenue between $500 million and $1 billion that generate robust free cash flow and operate in large markets [2]. These companies, she believes, are in their "third or fourth inning," with the potential for compounding growth [2]. To identify these hidden gems, Zhang and her team at Alger employ a rigorous research process that focuses on fundamental analysis, financial modeling, and competitive landscape evaluation [1].

One of the key advantages of investing in mid-cap companies, according to Zhang, is their potential for significant growth compared to larger, more established companies [3]. These mid-sized firms often have more room to expand their operations and capture market share, making them attractive investment opportunities. Furthermore, Zhang's preference for measuring companies by revenue rather than market capitalization allows her to identify potential gems that may be overlooked by other investors [2].

Zhang's successful investment career began at Brown Capital Management, where she served as a Partner, Managing Director, and Senior Portfolio Manager of its Small Company Strategy [1]. Prior to that, she held roles as a Portfolio Manager/Analyst at Epsilon Investment Management, Research Analyst at Templeton Worldwide, and Associate at Citicorp Securities [1].

In addition to her professional accomplishments, Zhang is a dedicated advocate for opportunities for Asian women in professional fields [1]. She has received numerous awards for her leadership, including the Charismatic Impactful Leadership Award of the Year in 2020, the "50 outstanding Asian Americans in Business Award 2019," and "The Mulan Award 2018" [1].

As the manager of Alger's Small Cap Focus, Mid Cap Focus, Mid Cap 40, and Small Cap Growth Strategies, Amy Zhang continues to demonstrate her expertise in identifying and capitalizing on growth opportunities in mid-cap companies. With her extensive experience, rigorous research process, and commitment to excellence, she is a valuable resource for investors seeking to navigate the complex world of finance.

References:
[1] Trustnet. (n.d.). Amy Y. Zhang. Retrieved February 12, 2023, from https://www2.trustnet.com/managers/factsheet/amy-y-zhang/utoeic/U/MC4052213/
[2] Seeking Alpha. (n.d.). Amy Zhang's Alger Mid Cap Focus Fund. Retrieved February 12, 2023, from https://seekingalpha.com/symbol/453428-ALGMX/
[3] Morningstar. (n.d.). New Home, Same Hunt: Small-Cap Gems. Retrieved February 12, 2023, from https://www.morningstar.com/funds/new-home-same-hunt-small-cap-gems