Optimism about the technology sector dipped in 2014, but Jennifer Law has maintained an overweight position.
In the first three quarters of last year, she found the technology sector experienced fairly uneven performance. So, “we didn’t really add any alpha in the sector,” says Law, who’s vice-president and portfolio manager of Canadian small caps at CIBC Asset Management.
On the upside, “we got some of that performance back in the fourth quarter.”
Read: Is it getting harder to find alpha?
Further, even though “some smaller companies are vulnerable to contract losses,” they’re closer to benefiting from today’s growth catalysts after surviving last year’s volatility.
Going forward, says Law, “we need to balance our winners and losers, but we’re on the right track.” Her current technology holdings are similar to those she had in 2014–they include top performers such as Absolute Software and CR Wireless. She’s since added exposure to companies like Descartes Systems Group, which offers stability and strong revenue growth.
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