Considering its nature, technology always will be a mega-trend of sorts, if you think about it.
Right now, there’s a variety of new and emerging segments with tremendous promise, including cloud computing, mobile and Big Data.
A fund that specializes in riding these waves is the Buffalo Discovery Fund (MUTF:BUFTX) — but it does so in an outside-the-box way.
Portfolio managers Clay Brethour, Dave Carlsen and Elizabeth Jones don’t focus so much on traditional tech stocks so much as they look at numerous sectors — including financial services, healthcare and industrials — for companies on the cutting edge of technology. utilize a broad-based interpretation of technology.
Naturally, that results in a diverse set of holdings. Top weightings in the fund include familiar tech names like Apple (NASDAQ:AAPL) and Oracle (NASDAQ:ORCL), healthcare-related businesses like dentistry-focused Align Technology (NASDAQ:ALGN) and injectables firm Hospira (NYSE:HSP), and even seedmaker Monsanto (NYSE:MON).
This innovative strategy has worked quite well. BUFTX has returned 17.8% year-to-date and has averaged 14% returns over the past three years.
BUFTX charges 1.01% in expenses and also garners Morningstar’s five-star rating.