Alger Growth & Income Fund on Chevron Corporation
Thesis
Chevron gives the fund exposure to a global integrated energy company with worldwide upstream production complemented by refining and chemicals operations. Shares detracted from performance as oil prices fell sharply during the quarter. Alger attributed the move to progress toward a U.S.-Iran agreement and the reopening of the Strait of Hormuz, which led investors to unwind the supply-risk premium in crude.
“Chevron is a global integrated energy company with upstream production across the world, complemented by refining and chemicals operations.”
Key risks
- Lower oil prices as the supply-risk premium unwinds