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Philip van Doorn

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Aug. 20, 2022, 9:58 a.m. EDT

What’s the best way to invest in tech stocks right now? This strategy is working well for one fund manager.

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By Philip van Doorn

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“Do I wish we owned Nvidia for the past 20 years? Absolutely — it has been a monster,” he said.

But Nvidia Corp. /zigman2/quotes/200467500/composite NVDA +6.51% , Tesla Inc. /zigman2/quotes/203558040/lastsale TSLA -0.34% and Netflix Inc. /zigman2/quotes/202353025/composite NFLX +0.60% , which he all termed great companies, featured “returns on equities shared with shareholders” that didn’t meet the fund’s standards. He named Amazon.com Inc. /zigman2/quotes/210331248/composite AMZN +2.14% and Apple Inc. /zigman2/quotes/210331248/composite AMZN +2.14% as examples of companies that do.

Here’s a comparison of the fund’s total return to those of the Invesco QQQ Trust /zigman2/quotes/208575548/composite QQQ +1.18% (which tracks the Nasdaq-100) and the SPDR S&P 500 Trust /zigman2/quotes/209901640/composite SPY +0.78% over the past five years:

It is hardly surprising that the Red Oak Technology Select Fund trailed QQQ, when central-bank and fiscal policies did so much to support even the riskiest tech stocks. But the fund has beaten the S&P 500’s /zigman2/quotes/210599714/realtime SPX +0.75% five-year performance, and depending on how you feel about the direction of interest rates and the economy, the conservative approach to technology may be the right one for you.

Stimpson said that over the past year, the fund has been reducing holdings tied to consumer electronics, because the management team believed “demand had been puled forward during the pandemic for gaming, homes, etc.” He also said they had “lightened up on semiconductors,” and increased holdings in enterprise-class software companies.

Top holdings

Here are the 10 largest holdings of the Red Oak Technology Select Fund as of June 30:

Company Ticker Share of fund First purchased
Alphabet Inc. Class C /zigman2/quotes/205453964/composite GOOG 7.9% March 2014
Apple Inc. /zigman2/quotes/202934861/composite AAPL 7.2% March 2006
Amazon.com Inc. /zigman2/quotes/210331248/composite AMZN 6.9% March 2016
Microsoft Corp. /zigman2/quotes/207732364/composite MSFT 6.0% March 2013
Cisco Systems Inc. /zigman2/quotes/209509471/composite CSCO 5.5% April 1999
Meta Platforms Inc. Class A /zigman2/quotes/205064656/composite META 4.9% March 2016
KLA Corp. /zigman2/quotes/209248041/composite KLAC 4.7% June 2006
Oracle Corp. /zigman2/quotes/202180826/composite ORCL 4.7% September 2013
Synopsys Inc. /zigman2/quotes/208349984/composite SNPS 4.5% March 2010
Intel Corp. /zigman2/quotes/203649727/composite INTC 4.4% June 2010
Source: Morningstar

The percentage of Alphabet Inc. shares on the list above is for the fund’s combined holdings of the company’s Class C /zigman2/quotes/205453964/composite GOOG -1.26% and Class A /zigman2/quotes/202490156/lastsale GOOGL -1.30% shares.

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/zigman2/quotes/200467500/composite
US : U.S.: Nasdaq
$ 171.69
+10.49 +6.51%
Volume: 51.55M
Dec. 8, 2022 4:00p
P/E Ratio
73.04
Dividend Yield
0.09%
Market Cap
$396.55 billion
Rev. per Employee
$1.27M
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/zigman2/quotes/203558040/lastsale
US : U.S.: Nasdaq
$ 173.44
-0.60 -0.34%
Volume: 97.62M
Dec. 8, 2022 4:00p
P/E Ratio
53.59
Dividend Yield
N/A
Market Cap
$549.58 billion
Rev. per Employee
$753,983
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/zigman2/quotes/202353025/composite
US : U.S.: Nasdaq
$ 310.26
+1.84 +0.60%
Volume: 7.21M
Dec. 8, 2022 4:00p
P/E Ratio
27.79
Dividend Yield
N/A
Market Cap
$137.25 billion
Rev. per Employee
$2.79M
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/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 90.35
+1.89 +2.14%
Volume: 73.31M
Dec. 8, 2022 4:00p
P/E Ratio
82.97
Dividend Yield
N/A
Market Cap
$902.44 billion
Rev. per Employee
$312,308
loading...
/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 90.35
+1.89 +2.14%
Volume: 73.31M
Dec. 8, 2022 4:00p
P/E Ratio
82.97
Dividend Yield
N/A
Market Cap
$902.44 billion
Rev. per Employee
$312,308
loading...
/zigman2/quotes/208575548/composite
US : U.S.: Nasdaq
$ 283.85
+3.32 +1.18%
Volume: 42.59M
Dec. 8, 2022 4:15p
loading...
/zigman2/quotes/209901640/composite
US : U.S.: NYSE Arca
$ 396.24
+3.08 +0.78%
Volume: 60.74M
Dec. 8, 2022 4:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,963.51
+29.59 +0.75%
Volume: 0.00
Dec. 8, 2022 5:07p
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/zigman2/quotes/205453964/composite
US : U.S.: Nasdaq
$ 93.95
-1.20 -1.26%
Volume: 25.59M
Dec. 8, 2022 4:00p
P/E Ratio
18.91
Dividend Yield
N/A
Market Cap
$1230.09 billion
Rev. per Employee
$1.79M
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/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 142.65
+1.71 +1.21%
Volume: 62.13M
Dec. 8, 2022 4:00p
P/E Ratio
23.38
Dividend Yield
0.64%
Market Cap
$2242.09 billion
Rev. per Employee
$2.40M
loading...
/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 90.35
+1.89 +2.14%
Volume: 73.31M
Dec. 8, 2022 4:00p
P/E Ratio
82.97
Dividend Yield
N/A
Market Cap
$902.44 billion
Rev. per Employee
$312,308
loading...
/zigman2/quotes/207732364/composite
US : U.S.: Nasdaq
$ 247.40
+3.03 +1.24%
Volume: 22.61M
Dec. 8, 2022 4:00p
P/E Ratio
26.66
Dividend Yield
1.10%
Market Cap
$1821.65 billion
Rev. per Employee
$918,891
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/zigman2/quotes/209509471/composite
US : U.S.: Nasdaq
$ 48.99
+0.81 +1.68%
Volume: 16.02M
Dec. 8, 2022 4:00p
P/E Ratio
17.71
Dividend Yield
3.10%
Market Cap
$197.93 billion
Rev. per Employee
$627,719
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/zigman2/quotes/205064656/composite
US : U.S.: Nasdaq
$ 115.33
+1.40 +1.23%
Volume: 30.62M
Dec. 8, 2022 4:00p
P/E Ratio
10.99
Dividend Yield
N/A
Market Cap
$302.11 billion
Rev. per Employee
$1.64M
loading...
/zigman2/quotes/209248041/composite
US : U.S.: Nasdaq
$ 395.92
+7.83 +2.02%
Volume: 1.13M
Dec. 8, 2022 4:00p
P/E Ratio
17.88
Dividend Yield
1.31%
Market Cap
$55.00 billion
Rev. per Employee
$702,065
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/zigman2/quotes/202180826/composite
US : U.S.: NYSE
$ 80.07
+1.29 +1.64%
Volume: 5.92M
Dec. 8, 2022 4:03p
P/E Ratio
38.03
Dividend Yield
1.60%
Market Cap
$212.40 billion
Rev. per Employee
$308,797
loading...
/zigman2/quotes/208349984/composite
US : U.S.: Nasdaq
$ 330.61
+6.81 +2.10%
Volume: 996,456
Dec. 8, 2022 4:00p
P/E Ratio
52.47
Dividend Yield
N/A
Market Cap
$49.51 billion
Rev. per Employee
$310,589
loading...
/zigman2/quotes/203649727/composite
US : U.S.: Nasdaq
$ 28.44
+0.11 +0.39%
Volume: 28.49M
Dec. 8, 2022 4:00p
P/E Ratio
8.78
Dividend Yield
5.13%
Market Cap
$116.92 billion
Rev. per Employee
$574,236
loading...
/zigman2/quotes/205453964/composite
US : U.S.: Nasdaq
$ 93.95
-1.20 -1.26%
Volume: 25.59M
Dec. 8, 2022 4:00p
P/E Ratio
18.91
Dividend Yield
N/A
Market Cap
$1230.09 billion
Rev. per Employee
$1.79M
loading...
/zigman2/quotes/202490156/lastsale
US : U.S.: Nasdaq
$ 93.71
-1.23 -1.30%
Volume: 32.21M
Dec. 8, 2022 4:00p
P/E Ratio
18.86
Dividend Yield
N/A
Market Cap
$1230.09 billion
Rev. per Employee
$1.79M
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