Despite Drops,Some Fund Mgrs Still Preach Huge Tech Boom
By ERIK AHLBERG - June 30
CHICAGO -- Strap on your seat belts, technology shares are set to take off again.
That's the message these days from fund managers James Callinan and Garrett Van Wagoner. The two separately manage a host of Internet and technology-heavy mutual funds that saw 100% gains last year but have recently suffered.
Callinan and Van Wagoner told investors at the Morningstar Investment Conference in Chicago Thursday afternoon that the technology markets will heartily recover from their spring sell-off.
But better yet, how about a global communications revolution bigger than the invention of the wheel? That could mean juicy profits for investors who aren't afraid to dive back in and continue aggressively investing for growth, the two said.
The big sector will be wireless communications devices. Companies like WebLink Wireless Inc. (WLNK) and Metrocall Inc. (MCLL) are the big bets placed by Callinan, with 3 million and 4 million shares respectively.
Callinan said he's been buying up technology stocks in recent months. He spent about $250 million in April and another $200 million in May. The buying even includes companies that are losing money, he said.
The idea is to get in while the getting's good. But at a conference where value investing and heavy balance sheet analysis are the new fashionable topics, the merits of technology are a tough sell.
It shouldn't have to be that way, Van Wagoner said. Funds expected the steady streak of 52-week highs to come to an end at some point, though not quite as soon and not quite as abruptly as what actually happened. So now it's a matter of finding new companies to ride to the top, Van Wagoner said.
Callinan and Van Wagoner said that their risk management techniques haven't changed from earlier in the year.
Other companies mentioned during the session included wireless products firm Research In Motion Ltd. (RIMM), home grocer Webvan Group Inc. (WBVN), Internet telephone company Phone.com Inc. (PHCM) and bar-coding firm Symbol Technologies Inc. (SBL).
Callinan is a managing director with RS Investment Management and portfolio manager of the RS Aggressive Growth Fund, RS Emerging Growth Fund, and RS Internet Age.
Van Wagoner is president of Van Wagoner Capital Management Inc. and portfolio manager of the Van Wagoner Funds, including the Emerging Growth, Micro-Cap, Mid-Cap, Post-Venture and Technology Funds.
-By Erik Ahlberg, Dow Jones Newswires; 312-750-4141
------------------------------------------------------------------------
URL for this Article:
interactive.wsj.com
------------------------------------------------------------------------ |
