TMT sector remains challenged

TMT sector funds have been in the doldrums. IT companies have failed to make their predicted profits, the semi-conductor industry has been hit and companies have little pricing power because of overcapacity in the market. However, some managers feel growth could pick up again for 2005 and there have been some positive results for service companies. Nick Evans, manager of the Framlington NetNet Fund, says: "We have been disappointed that many software companies have missed their revenue targets in recent weeks and we are worried this may be the start of a long-term trend as opposed to a s...