The CIO of the investment company, Selective Wealth Management has been successful in setting up a highly performing fund that relies heavily on the technology sector. Christopher Devlin, the chief investment officer said that the company did not expect the portfolio to lean as heavily as it did towards the tech side.
The fund was created in January, the previous year by Devlin himself. He has said that although he is responsible for its creation, the overall strategy had not been to create a tech reliant fund.
Why did the SLCTX show an inclination towards the tech sector?
He said that in the process of analyzing the businesses that are most capable of growth in the future, over a period of five to ten years, tech companies were the ones that happened to show the most promise.
Eventually, against all odds though, the funds started to pay off. Investors gained as much as 14.39 percent from the SLCTX or the Selective Opportunity Foundation fund in the first quarter alone.
The fund is made of ten sub-stocks out of which eight are tech companies.
Among the top highly performing holdings in the SLCTX are MuleSoft Inc A, Syntel Inc, Baidu Inc ADR, Alphabet Inc C, and finally Redknee Solutions Inc.
The data is true as of January 31. Mulesoft, Intel and Alphabet weighed a total of 34.22 percent for assets worth of $45.8 million that were under management. Salesforce, an American cloud computing company agreed to buy MuleSoft for $6.5 million after which MuelSoft shares went up by ninety percent in the last three months.
Apart from Devlin's fund, several other funds benefited from the technology sector this quarter. Among the five top funds, four were from the technology sector.
27.24 percent of the PrimeCap Odyssey Aggressive Growth Fund or POAGX is constituted by tech funds while 33.81 percent of the Virtus KAR Mid-Cap Growth Fund Class I or PICMX have high exposure to tech as well. 67.9 percent of the Berkshire Focus fund or BFOCX also leans towards the technology sector.
The facts are not surprising since the tech sector has been dominating the US. stock market for well over a year as of now. However, analysts agree that for all the good news about the tech sector, there is also bound to be some volatility in the near future. Analysts advice investors to think for the long term and broaden their horizons.