New and Smaller Companies Poised to Lead Technology Boom

After years of misery, technology is firmly on the road to recovery. That’s the word from a trust manager in the U.K.

by William White

Mike Bourne, Manager of the Finsbury Technology Trust and the Close Finsbury EuroTech Trust made the observation during a roundtable luncheon organised by the Association of Investment Trust Companies, (ATIC).

He said, the technology of today may be able to deliver on the promises made five years ago that were not fulfilled, and led to the dot com bubble burst.

“After the dot com burst,” Bourne said, “technology stocks were an unloved investment opportunity, but this may now be changing.” “Notwithstanding”, he added “any potential unexpected market setback, it does feel like the sector has reached a turning point and is recovering after a long period in the doldrums.”

Bourne expressed the view that many investment opportunities exist, particularly among ‘the small company universe,’ where companies have fallen off investor radar screens and are selling-on valuations that offer the potential for significant returns.

Jemma Jackson, ATIC’s PR manager cautioned that the technology sector is not for the faint hearted and emphasised the importance of taking a long term view.

Ben Rogoff lead manager of Polar Capital Technology Trust and Bourne agree that technology stocks now on the verge of the next upward cycle are fuelled mainly by the spread of Broadband.

Mr. Rogoff believes the factors that fuelled the last boom are back but that hopes will be met by a number of new companies.