5 Technology Stocks For The Long Run — Barron’s Article On Top Technology Fund Manager’s Picks For The Portfolio
Johanna Bennett had a article in this weekend’s (June 12, 2017) Barron’s on ‘5 Technology Stocks For The Long,’ based on an interview with Joshua Spencer, Fund Manager, for T. Rowe Price Global Technology Fund. Based on the selloff in the technology last Friday and today; this is a very timely article. Mr. Spencer oversees $4.9B in his technology fund, “which has returned over 30 percent since the start of 2017, and +37 percent in the last 12 months — beating 95 percent of other [Wall Street] technology funds tracked by Morningstar,” Ms. Bennett wrote. Ms. Bennett added that “the no-load fund (ticker: PRGTX), which charges 0.9 percent in annual fees, is in line with the MSCI ACWI Information Technology Index And, for three-and-five-year periods, its annualized returns of 24.1 percent, and 26.8 percent respectively, trounced the benchmark’s 16.0, and 18.1 percent gains, while outperforming 98 percent of their peers in both periods.”
I am sure Mr. Spencer would be the first to acknowledge that past performance does not indicate or guarantee a repeat performance. So, make sure you do your own due diligence and homework before investing. But, he does appear to have a ‘hot hand,’ as they say; and, his outlook and recommendations should be — at a minimum, on your radar screen, or watch list. Having said that……
Ms. Bennett notes that “Mr. Spencer and his team, look for names poised to profit from overriding investment themes, such as the rise of cloud computing,” artificial intelligence, virtual reality, cyber security, big data management, deep learning, and so on. “They favor companies trading at least 30 percent below their intrinsic value; and, build positions, when the shares are unloved, and take profits when they begin to look overvalued,” she wrote.
I refer you to this weekend’s Barron’s article by Ms. Bennett for the granularity and detail on each of the technology companies that Mr. Spencer and his team like for the remainder of 2017.
The technology companies that Mr. Spencer and his team like are:
Salesforce.com (ticker: CRM) — his top software pick;
Ultime Software Group (UTLI) — another cloud play providing payroll & accounting software;
Ctrip.com International (CTRP) — an online/digital travel company based in China, trying to do in Asia, what PriceLine did [does] in Europe & the United States; Mr. Spencer says “It’s a fantastic company with great growth opportunity;
NetFlix (NFLX) – building a moat around itself; and, dominating the field;
GuideWire Software (GWRE) – makes software for the insurance industry. “It’s a field with lots of opportunity as financial companies use more software.
There were other larger companies that the fund holds shares in, or likes, like Amazon and Tesla; but, again, I refer you to Barron’s for additional details. I will probably take advantage of this technology selloff to get a position in some of these companies. V/R, RCP, fortunascorner.com