Daniel Chung, the CEO and chief investment officer at investment firm Fred Alger Management, survived the Sept. 11 attacks on the World Trade Center by a twist of fate. That fateful morning, a quarter-century ago, the then-tech analyst found himself running late for a crucial meeting at the Intercontinental Hotel in Midtown Manhattan, seeking answers about an underperforming stockholding.

Courtesy: Fred Alger Management

"I was running late, so I went straight to the meeting," Chung recounted. "The meeting starts. CEO walks out. He's barely started, and somebody comes from, I guess, the hotel or the AVs — you know, the audiovisual staff – and hands them a note." The note conveyed a shocking message: "I'm not sure we can continue. There's been a plane or something at the World Trade Center."

Alger's offices, located on the 93rd floor of One World Trade Center's North Tower, were tragically at the epicenter of the first attack at 8:46 a.m. In midtown, the initial reports were met with disbelief, with many assuming it was an accident. The stark reality set in minutes later when the second plane struck the South Tower. A profound silence fell over the room as the meeting was abruptly canceled. The immediate challenge was communication; cell phones were not working, and a queue formed for the single landline outside the conference room. None of the attempts to reach offices downtown in lower Manhattan were successful.

Stepping outside the hotel on 42nd Street, Chung found traffic at a standstill. People stood in stunned silence, gazing down Lexington Avenue, where a plume of smoke and debris obscured the view of the burning and collapsing towers. It was a scene of surreal devastation. Chung recalls the dawning realization that he needed to move uptown, away from the unfolding tragedy. He spent the remainder of the day coordinating with colleagues, searching hospitals like St. Vincent's and Bellevue, armed with photos of missing co-workers, desperately hoping for news of survivors.

"By midday or later, you had thousands and thousands of people outside these hospitals, putting up signs and waiting, just waiting," Chung said. "I remember, by evening, you're hoping to see one ambulance. I don't actually recall seeing any that day." Long after midnight, Chung finally returned home to his family in Brooklyn, carrying the immense weight of the day's events. He would later learn that 35 of his colleagues, including then-CEO David Alger, had perished in the North Tower attack.

The Most Senior Survivor Takes the Helm

In the immediate aftermath of the tragedy, Chung was appointed chief investment officer of Alger. As the most senior survivor, and with founder Fred Alger coming out of retirement, Chung was tasked with the monumental challenge of rebuilding the firm. He had access to the firm's substantial capital reserves, intended for market crises, and the urgent need to reassure clients and stakeholders about the firm's future.

Thanks to the foresight of Michael Howell, Alger's chief technology officer who also died on September 11th, the firm was able to resume operations on September 13th. Howell had meticulously prepared a backup recovery center in Morristown, New Jersey, equipped with a full trading desk that mirrored the setup at the World Trade Center. "It was above gold standard," Chung remarked, calling it "Platinum standard." Client records, proprietary trading models, and other critical data were intact. Within days, Alger convened a conference call to update clients, consultants, and exchanges on the firm's status.

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Growth and a New Era of Investment

In the 25 years since that devastating day, Chung has not only rebuilt Alger but has propelled it to new heights. The firm, once known for its strong performance during the 1990s tech boom, has seen its assets swell to over $47 billion. The flagship Alger Spectra Fund (SPECX) alone manages $4.5 billion in total assets.

More recently, the fund manager has excelled, largely due to Chung's conviction in the artificial intelligence (AI) trade. SPECX secured a position in the top 4% of funds in its category last year and the top 2% in 2024. According to Morningstar, the fund consistently ranks in the top quartile for three-, five-, and 10-year performance.

Alumni Return, Legacy Preserved

Chung, now 64, attributes his success partly to a decision made soon after the attacks: to forgo extensive hiring of external star managers and instead focus on rebuilding the firm with its own alumni. He recognized that honoring the legacy of those lost meant preserving Alger's core philosophy and culture. Chung actively sought out successful former employees who had honed their skills at Alger, believing this approach would best maintain the firm's spirit.

"I became dedicated to the idea of not only rebuilding Alger and staying in business — but rebuilding Alger," Chung stated. "We had been the best." Many alumni answered the call, feeling a sense of duty to contribute. Among them were Teresa McRoberts (healthcare coverage) and David Hyun (formerly of Oppenheimer Funds). Jill Greenwald, a small-cap portfolio manager, approached Chung at a memorial service for Ginger Risco, a former Alger secretary who pursued her analyst dreams at the firm before also perishing on the 93rd floor.

"Jill came up to me and said, 'I heard you're asking Alger alumni to return,'" Chung recalled. "I said yes, and she said something like, 'When do I start?'"

Investing in 'Positive Dynamic Change'

Today, Alger maintains its long-standing bullish stance on technology, a core tenet since its inception in 1964. Fred Alger famously championed a growth-oriented investment style, contrasting with value investors. His philosophy centered on identifying companies with accelerating revenue growth, a strategy that led to early investments in giants like Intel (1977), Apple (1984), and Microsoft (1990). This foresight earned Alger plaudits from Wall Street and recognition, with Fred Alger named to Barrons' All-Century Team of legendary investors.

The firm's investment philosophy, centered on "positive dynamic change," has led it to be an early investor in the current AI boom. Chung dismisses concerns about potential oversupply in data centers and inflated prices, arguing that the current reality is a critical shortage of computing power.

Nvidia (NVDA) currently stands as the Spectra fund's top holding, representing 14% of assets as of June, according to Morningstar. Despite its stellar performance, the dominant AI chipmaker's 17% year-to-date gain is seen as a mild disappointment only when compared to its extraordinary returns since late 2022 and its robust earnings growth. Chung anticipates Nvidia will continue to command a premium price-to-earnings ratio.

CrowdStrike (CRWD) is another high-conviction bet, with Chung expecting it to maintain "very high rates of growth" for years to come, given the increasing importance of cybersecurity in the AI era. Chipmakers Western Digital (WDC) and Micron (MU) are also expected to benefit from the growing demand for memory solutions. Nebius Group (NBIS), a top 10 holding in Spectra, is a neocloud company that Chung identified early as a significant player in the space, with its value nearly tripling this year.

"We are still in the early years of what will be probably almost a full decade" of AI-driven growth, Chung stated, a Stanford undergraduate alumnus. He likens the current AI phase to 1995 rather than the late stages of the dot-com bubble in 1999. "This feels more like 1995, I think, than, say, 1999."

A Reminder of 'Good in this World'

Alger has not only recovered but has emerged larger than ever. The tragedy of 9/11 has deeply influenced the firm's commitment to charitable giving, exemplified by a fundraising golf tournament held in May.

The firm also launched the Alger 35 ETF, comprising 35 of the firm's highest-conviction investment ideas, in honor of the 35 colleagues lost on 9/11. A portion of the fund's management fees is donated to charities in memory of David Alger and their colleagues. This ETF, rated gold by Morningstar, even features ideas presented by the firm's youngest analysts.

The recovery process has fostered Chung's optimistic outlook, even amidst current societal challenges, anxieties about AI, and geopolitical conflicts. He remains confident in America's ability to move forward. "Look at how well New York has done. Look at how well America has done, actually. And look at how well Alger recovered," Chung observed. "I think it's a reminder. I'll quote the 'Lord of the Rings' hobbits a little bit. It's a reminder that there's a lot of good in this world."

"A lot of good in people, in our institutions, certainly in this city and in this country," Chung continued. "And it is because of that — that perseveres and goes on, even as there's a lot of noise and uncertainty and worry — that we have recovered. We're here today."