Which tech stocks can build on pandemic gains? Fund manager Ryan Jacob offers these two names.

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Fund manager Ryan Jacob has survived plenty of market crises. The Jacob internet Fund got its start in 1999 and is still going strong. He lays out two tech...

Investors learned plenty of lessons from the worst pandemic in more than a century. One of the biggest was that technology companies wouldn’t only survive, but thrive from a chaotic upheaval to daily living and working.

The fund’s mandate is to seek out innovative technology companies with a wide investment moat, but Jacob said while large-cap tech has been a big market driver for the last eight or nine years, the fund has veered in another direction. Jacob also worries the bigger names could be “quite dangerous,” as companies start to come down from a so-called “sugar high” from 2020. “They put such extraordinary growth up last year, it’s gonna be hard to match,” he explained.

“It’s been a great business for them and they’ve kind of become the market leader in this market. It’ll be difficult for competitors to catch up, almost think like a Google-type scale because once you have the most advertisers, the best prices, the most relationships, it’s really hard to get that network effect, and hard for other players to get in,” he said.

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