Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: joe who wrote (15198)	4/13/1998 2:26:00 PM
From: joe	Respond to of 45548

Part of article about Brandywine Fund from TheStreet.com. The fund is run by Foster Friess & Co. (well known fund tech fund, with good record, but made the mistake of getting out of tech completely after E.Asia problem, and as a result has missed most of the tech forward move for 1998) Joe ______________________________________________________________________ By Avi Stieglitz Staff Reporter 4/8/98 6:34 PM ET Though the Brandywine Fund has jumped back into tech, Foster Friess & Co. remain concerned about the impact of Asia on U.S. corporate profitability, particularly in the volatile sector, a manager says. The concern doesn't show in the top 10 holdings. As TSC reported yesterday, seven of the fund's top-10 holdings on its March 31 list are tech stocks, and the fund now has a 24% position in the sector as a whole. But Brandywine managers are not ready to be seen as champions of the group just yet. "I wouldn't use the blanket statement that we're bullish on tech," says William D'Alonzo, a senior portfolio manager at Brandywine. The 24% weighting in the flagship is "still less than half of what our typical tech position is." Late last year, Brandywine dumped most of its tech positions and shifted more than 70% of the portfolio's assets into cash as a defensive play against Asian economic weakness. They bulked up on retailers and other companies that would benefit from cheaper imports. In an interview Wedneday, D'Alonzo said that the new positions are "bottoms-up ideas." Networking stocks like Bay Network (BAY:NYSE), 3Com (COMS:Nasdaq) and Ascend Communications (ASND:Nasdaq) were purchased last quarter because of new product cycles in the industry. Says D'Alonzo: "Sales trends outside of Asia are [going to be] able to overcome the problems in Asia." Perhaps, but that possibility is what the managers missed before. Moreover, while many tech companies did miss earnings estimates or issue warnings, the market didn't get too put off. Says D'Alonzo, "We misjudged or didn't appreciate the money flows into the markets." ... <EOM>