Alger Spectra Fund on Accenture plc
Thesis
Alger shorted Accenture on the view that generative and agentic AI can automate a meaningful share of work traditionally delivered by large consulting and technology-services firms. Because the business model depends heavily on billing for professionals' time and expertise, the fund expects AI to pressure both demand and pricing over time. The short benefited when revenue missed expectations, the company lowered its full-year growth outlook, bookings declined and several large client projects were deferred.
“Our short position reflected the view that advances in artificial intelligence could automate a meaningful share of this work over time”