IT heading for a structural bull run says GLG's Funnell

GLG Partners' Ben Funnell has boosted tech exposure on the GLG Performance fund in the view the next expenditure cycle in IT is overdue.

The fund’s strategist now has 18% of the £625m fund in technology, having added 3% to the position since December. Holdings include Microsoft, Cisco, IBM, Autonomy and SAP. The portfolio has a 5% overweight to the sector compared to its benchmark the MSCI World. “Big US technology firms trade on 16.3 times forward earnings, just an 8% premium to the S&P’s P/E, even though technology stocks could display double the S&P’s earnings growth over the next five years,” Funnell says. To finance its overweight technology position, the fund, which is managed by Pierre Lagrange, has moved und...