Wednesday November 18, 2009
"I remain bullish on technology heading into 2010," says fund expert Jim Lowell. In The Fidelity Investor, he reviews one of his long-standing buys in the sector -- Select Technology (FSPTX).
"Critically, my view of technology's probably rebound parallels my past assessment that this year would likely deliver a jobless recovery wherein technology would be the leverage that companies used to gain production efficiency.
"We now know that this forecast has been confirmed. But the trajectory of increased earnings growth as meted by greater profitability now relies upon the profitability for economic recovery.
"Fidelity Select Technology has served us well; it's the top performing Select fund from the technology group this year, up 66%.
"Managed by Charlie Chai, this is the catch all fund of the group. Diversified across the tech spectrum, it has been my preferred fund as the market began to make the case for recovery.
"Chai invests in companies that benefit from technological advances, as well as companies involved with computer products, data processing equipment, electronics, aerospace and defense, and telecommunications. Foreign investment make up 21.5% of the holdings.
"The fund's top ten holdings are Apple, Microsoft, Google, Cisco, Intel, Hewlettp-Packard, Oracle, BMC Software, Red Hat and Micron Technology."
