Dan Chung stepped into the rubble of Fred Alger Management on September 11, 2001, when a hijacked plane crashed into the World Trade Center and killed 35 of the firm's 90 employees. He was at the firm's offices that morning but survived by circumstance. What followed was not retreat but reconstruction.
Chung became CEO and chief investment officer of one of Wall Street's oldest growth-focused asset managers. Fred Alger Management, founded in 1964, built its reputation identifying small-cap and mid-cap winners before they dominated indices. The firm managed roughly $4 billion in assets when the attacks occurred. The losses were catastrophic. Beyond the human toll, the firm lost key investment professionals, traders, and operations staff. Client confidence wavered. Survival required rebuilding from near-total organizational collapse.
Over two decades, Chung rebuilt Alger into a functioning investment operation. The firm retained its core philosophy of identifying undervalued growth stocks ahead of market recognition. This approach performed well during certain cycles but lagged during others. Growth-stock picking demands conviction and patience. Market timing kills returns. Chung's record suggests he maintained discipline through multiple bull and bear markets.
Alger's current assets under management sit substantially higher than pre-9/11 levels, though exact figures vary by reporting date. The firm operates with lean teams compared to larger mega-cap managers like BlackRock, Vanguard, and Fidelity. This structure preserves agility in stock selection. Smaller teams move faster than bloated research departments. They make contrarian calls without committee consensus slowing decisions.
The firm's strategy centers on identifying companies with sustainable competitive advantages trading below intrinsic value. This value-growth hybrid approach appeals to investors seeking outperformance without excessive risk concentration. Chung's tenure spans multiple market regimes. He navigated the 2008 financial crisis, the 2010s tech bubble, and the 2020 pandemic volatility. Each tested his conviction.
What separates Alger from index trackers and passive managers is stock selection skill. Index funds charge 0.03% to 0.10% annually. Active managers like Alger charge 0.50% to 1.50% or higher. This fee gap justifies only if managers deliver alpha, the outperformance above benchmark returns. Chung's career performance determines investor allocations.
The firm recently benefited from market rotation toward smaller capitalization stocks and value investing. Federal Reserve policy shifts in 2022 and 2023 pressured mega-cap tech stocks and favored smaller, profitable companies. This tailwind lifted Alger's positioning relative to growth-only competitors trapped in the Magnificent Seven dynamic.
Chung's leadership through extremity and normalcy alike demonstrates rare executive staying power. Few investment professionals remain at one firm for decades. Career mobility toward hedge funds, private equity, or startup ventures typically pulls talented managers away. Chung's commitment to rebuilding Alger after 9/11 and maintaining operational excellence through two decades positions him as a steward of institutional memory and investment discipline.
The broader lesson for investors centers on active management viability. Does stock picking create value after fees? Alger's track record over the past 20 years provides data. Chung's continued role signals internal confidence in his stock selection methodology.