Ardevora partner Jeremy Lang has added 9 per cent in information technology stocks in the £5.1m Ardevora global equity fund in a bid to capitalise on cheap valuations in the sector.
In December, the long/short fund had one per cent in information technology stocks and exposure now stands at nearly 10 per cent.
Lang (pictured) says he has been adding into large-cap information technology stocks because valuations are down due to concerns about the global economy.
He says: “In the US, there are many high-quality businesses that are impervious to what the global economy does. There are clear signs in the case of semiconductors in the US, where investors get obsessed with the boom and bust cycle, that the sector is improving rather than deteriorating. Investors were gloomy on that sector last year.”
Positions have been taken in Intel, Microsoft and semiconductor manufacturers KLA-Tencor and Applied Materials.
Hargreaves Lansdown senior analyst Meera Patel says: “It makes sense adding to technology companies because they are cheap and the US is a big technology market with recent positive economic data.”
The Ardevora global equity fund has returned 4.6 per cent in the year to January 26, according to Morningstar.