Alger Health Sciences C Fund Investor Investigation Over Possible Breaches Of Fiduciary Duties

If you purchased shares of Alger Health Sciences C (MUTF:AHSCX) and currently hold those MUTF AHSCX stocks, you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Alger Health Sciences C
Affected Securities: 
MUTF: AHSCX

San Diego, Aug 22, 2011 (Shareholders Foundation) -- Certain directors and officers of the Alger Health Sciences Funds are under investigation on behalf of investors in shares of the Alger Health Sciences C (MUTF: AHSCX) fund over possible Breaches of Fiduciary Duties.

The investigation by a law firm focuses on possible Alger Health Sciences C (AHSCX) shareholder claims based on potential breaches of fiduciary duties. Specifically, the investigation concerns whether certain directors and officers of the Alger Health Sciences Funds have breached their fiduciary duties by possibly implementing a so called ‘front-running policy’.

Front-running occurs when portfolio managers by taking advantage of advance knowledge of pending orders from its customers buy securities for their own account prior to buying the same securities for their clients, or when the managers sell securities out of their personal accounts prior to selling the same securities for their clients. The U.S. Securities and Exchange Commission (“SEC”) has characterized front-running policies as "absolutely" hurting investors.

Alger Management was founded in 1964 and has approximately $17 billion in assets under management. Alger Health Sciences C (MUTF AHSCX) fund is one of three Alger Health Sciences Mutual Funds, that seek long-term capital appreciation of investor assets. The investigation focuses on allegations that in April 2010, the Alger Health Sciences Funds' CEO instituted a policy that allowed him and other portfolio managers to gain a trading edge. It is alleged that the Funds’ CEO implemented a policy whereby all trades ordered by the Alger Health Sciences Fund were to be held for two hours or until approved by the CEO, and that no trades were to be executed for the Alger Health Sciences Fund without prior notice to the portfolio managers of the other funds managed by the Alger Health Sciences Fund's investment manager.

A spokesman for Alger reportedly said that they "believe that the policy was appropriate" and that “It was in the best interest of the clients and resulted in fair and equitable treatment to all of our clients”.

Shares of Alger Health Sciences C (MUTF: AHSCX) rose from as low as $11.12 in March 09 to as high as $19.86 on May, 31, 2011, respectively, $19.65 on July 7, 2011.

However since allegations concerning a potential front-running policy became public in July 2011 MUTF:AHSCX stocks fell from almost $20 in May to as low as $16.20 on August 8, 2011. Recently MUTF:AHSCX traded at $16.72 per share.