Putnam’s Global Technology Fund has outperformed nearly all of its peers over the last five years.
Di Yao, the fund’s co-manager, said he and his partner have focused on companies that the market either doesn’t understand or with which it’s not familiar.
They’ve found some of their best bets overseas and among smaller companies in the US; but they’ve also placed some winning bets on some of the tech giants.
Yao told Business Insider about 3 stocks he particularly likes in his portfolio — Microsoft, Sea Limited, and Applied Materials.
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Di Yao isn’t afraid to make big bets on well-known stocks or to invest in companies that few people in the US know about.
As the co-manager of Putnam’s Global Technology Fund, he’s done both. And the strategy has paid off in a big way. Of all the tech-focused mutual and exchange-traded funds, Yao’s ranks fourth in performance over the last five years, topping not only most other actively managed funds, but all the passive ones also, according to Morningstar Direct.
Yao and co-manager Neil Desai are big believers that the tech industry provides big opportunities for growth because of all the innovation and disruption that happens.
But they also believe that the market is inefficient, and there’s money to be made when investors as a whole fundamentally don’t understand a company or its potential, whether it’s one of the tech giants or a relatively unknown firm overseas, Yao told Business Insider in an interview last week. Instead of spreading their bets on all the usual suspects in technology, Yao and Desai focus on those underestimated companies, sometimes in a big way.
“We want our bets to be meaningfully generating performance,” Yao said.
Yao and his team have found many of their favorite bets overseas and among smaller tech companies in …read more
Source:: Business Insider