Looking at this article from the Australian Financial Review, we note the challenging environment facing technology-focused investment strategies in 2022. As an Australian global equities fund, we at Minotaur Capital understand the complexities of navigating volatile tech markets that have impacted many fund managers.
The article highlights how Thomas Rice, portfolio manager of Perpetual's Global Innovation Share Fund, has been strategically positioning during the technology sector downturn. Rice's experience provides valuable insights into current market dynamics affecting global equities strategies, particularly given his fund's 48 per cent decline over 12 months.
"The mistake we made last November was we didn't anticipate everything would be decimated so quickly," Rice explained regarding the rapid tech sell-off that dragged the Nasdaq down 29 per cent.
His approach to identifying opportunities in software-as-a-service companies and enterprise software demonstrates the rigorous equity research required in today's market. Rice's focus on companies like MongoDB, which fell from 30 times sales multiples to 13 times, and Intuitive Surgical, illustrates how valuations have been crushed across the sector.
"If you've got capital to deploy, it's an exciting time to go shopping in the market," Rice noted, emphasising the opportunities available to experienced fund managers willing to navigate current volatility.
This perspective offers valuable insights for investment professionals seeking to understand how technology sector dynamics continue evolving in challenging market conditions.
To read the article, click the link below.