Fundies say tech slump is an opportunity
Jan 12, 2021 – 11.10am
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Investors are confident the heavy underperformance of the local technology sector through the first few sessions of the year is nothing to panic about, despite rising bond yields bringing their lofty valuations into question.
Since the US 10-year topped 1 per cent last Thursday the local market s largest software-as-a-service (Saas) player Xero has plunged 10.3 per cent, while fellow SaaS provider Nearmap has dropped 6.3 per cent.
Jason Orthman, the deputy chief investment officer at Hyperion Asset Management dismissed 2021 s reversals as short-term wobbles in some cases.
AFR Any rotation to value styles or cyclical stocks will be temporary, he said. The best structural technology growth companies are misunderstood and remain compelling value over a 10-year time horizon.