By Philip van Doorn
“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.
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|
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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