The managers of the £3bn Scottish Mortgage investment trust have added a number of idiosyncratic stocks to their portfolio in the belief that 'safer' companies could be set for a fall.
Returning this week after a six month sabbatical, manager James Anderson (pictured) said the disruptive influence of technology continues to be a major theme for the trust, though he added it was difficult to predict when major shifts would occur.
Accordingly, recent additions to the portfolio include electric car manufacturer Tesla Motors and a number of high-tech healthcare stocks.
"We lost a lot of money on solar power [through an investment in First Solar] but disruptive change is still happening. The companies people think are safe will not be safe at all, though we are careful to take a long-term approach."
Anderson and deputy manager Tom Walsh are also building positions in genomics companies - bio-tech firm that use DNA in order find cures for diseases - initiating new positions in Genomic Health and Myriad Genetics adding to an existing holding in Celltrion.
"We have been sceptical about established healthcare players - the exception is genomics," said Walsh.
The pair also participated in a number of tech IPOs, buying into both Twitter and Zulily, an online clothes retailer that grossed $1bn in annual sales last year after just five years in business.
"We expect to see more gains from Amazon [the trust's top holding at 9.2% of the portfolio], but there are companies that benefit from casual online browsers rather than people who know exactly what they want," Walsh said.
"Zulily is one of those companies - essentially it is an inexpensive source of entertainment."
Scottish Mortgage has nearly doubled its benchmark over five years, returning 168% compared to the FTSE World average of 85%.
Caring for children and elderly relatives
Similar to June 2007
Square Mile’s series of informal interviews
Fine reduced to £60,000
Two roles created