Soft Money
Gumby's got nothing on this flexible fund.
You've got to love the Wasatch family
of funds. This Utah-based fund family has a stellar record for fund
management, but today, only one of its funds remains open to new
investors: the Wasatch Global Science & Technology Fund
(WAGTX).
Ajay Krishnan manages this 3-year-old sector fund, and typical
of all funds within the family, uses a bottom-up approach to
investing, is research driven, and is very price/earnings
sensitive. "Just in terms of our valuation discipline,"
says Krishnan, "we're trying to capture growth, but we
don't think you have to take on undue P/E risk to get
it."
That strategy has paid off. The fund was up 48 percent in 2003,
and ranked No. 1 in overall performance over the past three years
in Lipper's Science & Technology Category.
Content Continues Below
This fund is flexible and versatile. When tech stocks are
moving, its portfolio will bend toward them. When they're not,
Krishnan will reallocate assets into health and sciences stocks,
where the recurring revenue sources can be more stable. As for
versatility, the fund may invest in companies around the world and
of any market-cap size, but more typically small- to midcap
companies.
"This is not a hot dotcom fund in the sense that it's
probably not going to be at the top of the heap in an aggressive
market," says Krishnan. But for those who like these
sectors—and their inherent risks—this fund might be one
to look into.
Dian Vujovich is an author, syndicated columnist and
publisher of fund investing site www.fundfreebies.com.