Why this portfolio manager sees even more growth ahead for tech stocks

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Given the strong labour market and easing inflation, ‘it’s difficult to see a long, drawn-out recession,’ says Shane Obata of Middlefield Capital

, has seen a total return of 26 per cent year-to-date as of July 24, according to Morningstar Inc. The performance is net of fees.

The Globe and Mail spoke to Mr. Obata recently about his investing style and what he’s been buying and selling in the tech fund.We look for companies with a sustainable competitive advantage. They have durable moats. An example in the tech sector is a company that is unlikely to lose customers due to high switching costs, maybe because of how their contracts are set up or because the logistics around transferring are too costly and complex.

. It’s still our top pick in online travel but we have some macro concerns around travel spending. While it has been a resilient part of consumer spending, we think that’s partly due to pent-up demand from the pandemic. We think the higher cost of living, including higher mortgage payments and other expenses, could have an impact on travel budgets. It’s still a great company, but we’ve been paring back.. We own it, but we significantly reduced our position over the past 18 months.

 

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