The tech sector is one of the most rapidly evolving and innovative sectors out there and guessing what's ahead of them could be considered a fool's errand.
In the last few months alone Pokemon Go initiated a (brief) summer craze for Nintendo, until investors realized the venture was really driven by Google-owned Niantic Labs and the Pokemon Company, and Apple completely revamped the iPhone, causing investors to get excited about the brand again.
In this analysis, Citywire Americas has gone through its database of 117 equity technology managers to present the three best performers. The list is a diverse one, with companies based in Taiwan, the United States, and Sweden.
This analysis spans the past three years to the end of September, where the MSCI ACWI/Information Technology total returns over three years was 51.78%. The average manager returned 30.56%.
Below are the top three performers:
3. Yin-Zheng Wu – Fuh Hwa Securities
Three-year total returns: 55.49%
Fund: Fuh Hwa Digital Economy fund
Kicking off the ranking is AAA rated Yin-Zheng Wu, who has been managing the Fuh Hwa Digital Economy Fund since July 2011.
The fund invests in the Taiwan Stock Exchange (TSE) and companies involved in telecommunication, internet, software, e-commerce services, internet-related system software and internet-related system hardware businesses.
His top holdings are varied: International Games System is 7.28% of the fund, followed by Taiwan Semiconductor Manufacturing at 7.15% and Taiwanese communications giant Chunghwa at 4.61%
In addition to this fund, Yin-Zheng Wu also manages the Fuh Hwa Small Capital Fund.
2. Paul Wick – Columbia Threadneedle
Three-year total returns: 59.38%
Threadneedle Global Technology
Our second tech trailblazer is based in Silicon Valley. Paul Wick has been managing the Global Technology Portfolio since 2014.
The fund invests in principally in transferable securities of companies with business operations in technology-related industries, with top holdings being in telecommunications and in technical manufacturing.
The fund is very overweight in semiconductors & semiconductor equipement, with nearly half its assets (48.1%) in the sub-sector versus 15.1% in the benchmark. Its top holding is Lam Research (8.6%), a corporation that designs, manufactures and services semiconductor processing equipment.
Claes Murander – Lannebo Fonder
Three-year total returns: 66.70%
To top the ranking, A rated Murander is based in Stockholm, and has managed the Lannebo Vision fund since 2008.
The focus of the fund’s investments is in the United States, with 63% of the fund investing in North American equities. Top holdings are in technology, industrial goods, and telecommunications.
Nearly a tenth of the fund is invested in Apple, followed by Swedish medical technology company RaySearch Laboratories, which makes up 6.1% of the fund's assets.
Other household names in the portfolio include Microsoft, Alphabet, Facebook, Adobe and Amazon.