This aggressive stock fund has had a wild ride — but it has beaten rivals and the S&P 500

When investors hear the term “disruptive innovation,” they may be wary in light of the brutal declines for technology stocks during 2022. But the $5.5 billion PGIM Jennison Global Opportunities Fund, which takes what it calls an “unconstrained” approach to investing in companies that are in good financial shape and well-positioned competitively, has managed to perform well over the long term, despite high volatility.

Irwin said she and her colleagues use a “bottom-up” approach to identify companies with products or services “that will disrupt an industry or lead to a structural shift.” These shifts can be “driven by a proprietary technology, patent protection, network effects, speed to market, supply-chain advantages or economies of scale,” she said. The fund’s largest holding is Nvidia, which made up 8.5% of its portfolio as of June 30.

For five years, the PGIM Jennison Global Opportunities Fund has been well ahead of its benchmark, the MSCI All Countries World Index , but has trailed the S&P 500 slightly.Irwin said that valuations for growth stocks were high at the end of 2021, and that the Federal Reserve’s cycle of raising interest rates helped lead to “question marks about the sustainability of growth for companies that had benefited from the pandemic.

Here are the 10 largest holdings, out of 38, of the PGIM Jennison Global Opportunities Fund as of June 30, with projected compound annual growth rates for sales and earnings per share for two years through calendar 2025, based on consensus estimates among analysts polled by FactSet:Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.

Not all of these companies are expected to achieve double-digit annual sales growth rates. However, all except Hermes International SCA RMS are expected to increase earnings per share more quickly than they increase sales. When asked about Nvidia’s expectation for its sales to increase 50% quarter over quarter, Irwin said, “I don’t think I have ever seen anything like that. It was stunning.”

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