Technology: Investing in a Time of Rapid Change 

August 2017
Joshua Spencer , Portfolio Manager


We do deep fundamental research across the technology industry and our process is really to work with a group of about 20 analysts around the world, to identify the very best technology companies and build the portfolio as their best ideas. It’s a concentrated group of 40 to 50 holdings and what we’re looking for is companies well positioned, innovative, with rapid growth. Because of the volatility of the technology industry, we try to identify these very good, very rapid growing technology companies and then buy them during periods of market weakness or stress.


When we’re thinking about evaluating companies in technology and being cognisant of the rapid rate of change in the industry, we’re always looking for companies that are well positioned for what’s next. We look at things about their culture of innovation, we look at their R&D pipeline, we look at their customer loyalty and their durability and of course, we also look at the underlying financial metrics. We look at a lot of different valuation metrics, but one of the things that’s most important is looking at how a company’s financial performance will be in the future, as opposed to just looking at what it is today because we’re trying to capture how things will change and develop over time.


Our global research platform is a real strength across a couple of different dimensions. First because we research companies across all different sizes, we can see them across their lifecycle from private companies, up through small and mid-cap companies, all the way up to the largest companies and that helps us develop unique insights and we understand that disruption in technology often comes from below. So knowing those early stage young companies is very helpful.


Secondly, from a geographic perspective because we have analysts in offices around the world, we can see innovative companies wherever they are. We have the local knowledge to identify them and understand them, but also the global insights to see patterns and recognise innovation around the world.


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