The Alger Small Cap Focus Fund, managed by Amy Zhang, has gained 47% this year, outperforming its benchmark and all except one US fund tracked by Morningstar. Small-cap stocks, broadly defined as companies worth $200 million to $2 billion, provide a "fertile ground for active management," she told Business Insider. In a recent interview, Zhang shared three stock picks that had helped drive her fund's outperformance as well as what mattered most when deciding which companies to invest...

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