By Sam Benstead, Daily Telegraph, 16 December 2021
Polar Capital Technology gives investors access to the world’s best companies for a knock-down price.
When we tipped Polar Capital Technology Trust in 2018, we praised its “experienced and respected management team” and said its “uncharacteristically wide” discount of 6pc made it a clear buy.
Three years later, the technology fund’s team is the same, led by Ben Rogoff who took charge in 2006, but the prospects for the trust’s investments are even brighter and the discount is even wider, currently at 8pc.
We continue to support the trust despite shares returning just 12.5pc this year when its benchmark, the Dow Jones World Technology Index, has returned 33.5pc.
One reason for this optimism is that the pandemic has made our lives more digital…
But the best is still to come for the likes of Google, Microsoft and Apple – which are the largest positions in PCT – in terms of demand for their products and services as more of the world moves online. Rising inflation will also play into their hands as they have loyal customers that will be happy to pay more for their favourite gadgets, and companies will look to software and cloud computing firms to lower headcount and run their businesses more efficiently to counter rising labour and raw material costs…
While Questor is always worried about buying overpriced shares, the types of technology stocks that Polar Capital Technology invests in are fairly valued, in our view. It builds its biggest positions in the largest technology companies, which tend to be the cheapest relative to earnings, and only invests small amounts in the more speculative ones that are very expensive relative to earnings…
James Carthew, of research firm QuotedData, said Polar Capital was a far less risky option than Allianz Technology and a better investment at its current discount.
“Manager Ben Rogoff’s skill is to invest in companies when they are mature businesses but still have a lot of growth ahead of them. This keeps risk down but still provides lots of punch,” he said.
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