We highlight the assessment of a financial expert on an investment product in Finect tokens. This week Fernando llorente (Mapfre Investment) thinks about the investment fund BlueBox Global Technology Funda product of BlueBox Funds.
⭐️⭐️⭐️⭐️ Fernando Llorente (Mapfre Inversión): “A different approach to investing in technology”
Fund from BlueBox Asset Management, a manager founded in 2018 after the association of Blue Box Wealth Management and William de Gale, which has around 1.3 billion assets. The fund was launched in March 2018, with Gale himself being the main architect of the strategy, who after 20 years investing in technology stocks, and a decade directing the BGF World Technology, decided to continue with his technology investment strategy outside of BlackRock.
Its strategy focuses mainly on investing in companies that allow or facilitate direct connection between computer systems and the real world.. This philosophy seeks to invest in those companies that enable this direct connection, avoiding overvalued securities and very high-growth disruptors that do not generate current or near-term accounting profits. Focuses on companies with a market capitalization between $10 and $100 billiondifferentiating itself from other technology funds that usually invest in mega-caps (capitalization greater than 400 billion dollars).
Its investment process is characterized by low portfolio turnover and a long-term perspective. The management team carries out an in-depth analysis to understand why the technology sector has outperformed and tries to anticipate future trends. They are agnostic in portfolio formation, so they prioritize factors such as long-term conviction, upside potential and risk relative to any benchmark index.
We could summarize the main differences of BlueBox Global Technology compared to other technology funds in:
- Focuses on companies that facilitate disruptiongenerating constant and sustainable benefits and not on the disruptors themselves.
- Low rotation allows for better long-term performancebased on a deep understanding of sector trends.
- Avoid overvalued high-growth stocks.
- Limited exposure to mega-caps: largely avoids tech mega-caps, considering that although they have led in the last decade, they are less likely to maintain that position in the next 10 years due to the competitive and changing nature of the technology sector. By avoiding them, you could miss out on investment opportunities in leading technology companies that dominate the market.
- Investment focus on companies with ho benefitsand, leaving aside those with a very growth character and with very future profit estimates.
Regarding the quantitative aspect, since its launch, The fund has generated a cumulative return of 208% through May 31, 2024. The annualized return has been 20% compared to 18.4% of its benchmark index, the S&P Global BMI IT NTR. This great performance has led the fund to position itself in the first quartile in 2019, 2020, 2021 and 2023, and in the second quartile in 2022.
The fund invests through a concentrated portfolio of between 30 and 40 securities. As of May 2024, there are 32 companies in the portfolio, the sectors with the greatest weight being semiconductors (39.5%), software and computer services (30.8%), hardware (14.7%) and consumer discretionary (10%). .
In summary, BlueBox Global Technology offers a differentiated strategy within the theme, focused on technological enablers with a focus on sustainability and long-term value generation. Its historical performance and the experience of the management team make it a very interesting option in the category, providing great decorrelation compared to other references in the technology sector.
Here you can read the full review.
This content has been prepared under editorial criteria and does not constitute a recommendation or investment proposal. Investment contains risks. Past returns are no guarantee of future returns.
