Fund managers Paul Kleiser and Stuart O'Gorman see market turning in 2002
Henderson Global Investors is to embark on a series of invitation-only workshops for advisers, to introduce the team now running its Global Technology fund.
The fund, which remains Hendersons' top-selling product, is run by Paul Kleiser and Stuart O'Gorman, who have recently been joined by analyst Ian Warmerdam. Warmerdam specialises in US equities and was previously an investment manager at Scottish Widows.
The team is in the process of altering the portfolio by reducing its overweight position in PC manufacturers and companies that make memory chips, and is looking to build up its position in software and networking.
Kleiser said the fund is looking for general themes in the market that the team believes will be important in the technology universe. He will use stock picking to gain exposure to these trends.
Kleiser said: 'Stocks have to be in a growing market and in the running to dominate that market. You have to have a realistic model and we will invest in the themes we think are important and which should not be overvalued in terms of their prospects.'
Kleiser said it would be a long time before the technology sector reaches previous highs as the market is concentrating more on valuations and investors are no longer willing to pay such a high price for earnings.
He said: 'I do not predict the lows of 2000 again. We are in a trading range at the moment and companies are having to grow their earnings to push Nasdaq up, rather than the market just becoming enthusiastic.
'Earnings may start to rise again in the fourth quarter or at the start of next year, which is when there may be a bottom in earnings.'
Among the themes Hendersons is pursuing at present are outsourcing, use of the internet to help business processes and software that helps companies run more efficiently.
Kleiser said: 'We are also looking to a turn in the semi-conductor cycle. At present, orders are plunging but we are looking towards the end of the year when companies should look more attractive.'
At present, the fund's largest holding is Microsoft, which was up 51% over the year to 25 May.
Kleiser said that since the technology market bottomed on 4 April 2001, a significant portion of the technology market has been strong, with more defensive areas, such as services companies, suffering slightly as a result.
He said: 'The companies now performing strongly are semi-conductor and smaller software companies. Since the low, for example, PMC Sierra, which makes semi-conductors for the communication industry, has doubled in size.
'Siebel Systems is an example of a software company that has done well, from the low it is up almost 120%.'
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