Technology stocks not as cyclical as managers previously thought

Fund managers prefer software to cyclicals as confidence returns to the asset class

Fund managers are becoming increasing selective in their choices of technology stocks, identifying software companies as more resilient in the current environment than cyclicals. The Tech sector is growing in popularity, with several managers boosting their weightings in the area. JOHCM Global Select fund manager Christopher Lees recently upped his weighting to 27% in technology from 4% when the £25.7m portfolio was launched at the end of September 2008. At a stock selection level, Lees says his fund is biased towards Asian technology companies because they are growing faster than the...