Polar Capital: How to avoid value traps in the technology sector

Not focusing on valuation key to 'winning in the stockmarket'

clock • 2 min read

Investment themes and ideas should take precedence over valuation, according to Polar Capital's Ben Rogoff, who warned that a "value first" approach could result in buying less-than-attractive stocks.

In particular, he highlighted the importance of not investing in tech companies in the "final stage of the lifecycle", which may appear cheap on a price-to-earnings (P/E) basis and have delivered strong growth over the years, but have gradually become stagnant. The manager, who runs Polar Capital's £2.7bn Global Technology fund, its closed-ended counterpart the £2bn Polar Capital Technology Trust and the $401m Automation and Artificial Intelligence fund, which was launched in October 2017, likened his process to an everyday retail experience when addressing roughly 420 delegates at AJ Be...

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