Investor up 37% this year sees Big Tech concentration as an opportunity to find smaller gems

The Wall Street Bull (The Charging Bull) is seen during Covid-19 pandemic in New York, on May 26, 2020.

(This story is for CNBC Pro subscribers only). 

The manager of one mutual fund that's beating the market this year said that the concentration of the market in a few megacap tech stocks is not a concern but an opportunity.

F. Thomas O'Halloran, who manages the Growth Leaders Fund and three others for Lord Abbett, told CNBC that his team used a series of timely shifts in its portfolio this year to beat the broader market and continue a track record of outperformance. The Growth Leaders Fund, as measured by its R3 share class, has gained more than 37% year-to-date, according to Morningstar.

The fund's top positions as of June 30 were in trillion-dollar stocks, but O'Halloran said his background as a small-cap investor means that his team often looks to move "down cap" to smaller companies.

Show More

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button