A Sydney-based global stock fund that’s outperformed most peers is sticking with bets on some high-flying technology shares as investors question their valuations.
Hefty price tags on companies like Apple Inc. and Amazon.com Inc. might be justified given the quality of their businesses, said Alex Pollak, chief investment officer at Loftus Peak Ltd. His Loftus Peak Global Disruption Fund has returned about 24% this year and has outperformed 99% of peers over one-year, three-year, and five-year time spans, according to data compiled by Bloomberg.
Apple and Amazon “are below our valuation targets, having regard for the rapid growth in profitability that they have delivered and look like they will continue to deliver," Pollak said in an interview in mid-August, adding that his view hasn’t changed since the tech sector selloff in the past week. Apple fell 3.3% on Thursday, while Amazon dropped 2.9%.
0 Comments