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This fund has MSFT at 25% of it composition. For reference, Google at 2+%.
Why does this manager have so much of capital parked in MSFT? Is he using it as a dry powder? Any one with history with this fund perhaps can help. Thanks.
I own a little in the taxable. If it's all that, it will eventually become a bigger holding. Unfortunately, my timing has not been great. So it could be a while.
As for Microsloth, their original position dates to 1995. There hasn't been much reason to dump it since then.
I own this fund. I bought it somewhat out of dumb luck as I listened to an interview about the next leg up would the monetization of AI. The software sector had been flat at this time compared to what seemed to be other tech becoming expensive so it seemed like a good time to get in. The fund manager is big on AI, and looks for companies that can drive AI innovation and monetize and produce revenue.He is looking for companies that has access to large data sets and customer bases which allows them to train their AI systems to release for quick adoption. He believes MSFT, along with Alphabet (although that is his 9th top holding) fits the bill for what he is looking for and has confidence in MSFT. You can read more about it on the fund’s page on Fidelity’s website, in the commentary section.
Thanks for all the replies. I read the fund page at Fidelity before posting.
25% in one company and not sufficient discussion from the manager about it.
I know there is IGV. I will have to explore what else is available in the space.
Having said that I seem to make good money on funds I buy without knowing what is in them. There is a fund ( some of you own) I started buying a weeks ago and it kept going up and I kept throwing more money at it. Then last night I looked to see what is inside it and I froze from what I saw in it. So, following my methods may not be a recipe for making money.
Undervalued but has a potential for upturn - Software and related services, I am told. XESW though has done well YTD. I have not looked why or what is inside it. Not sure why IGV and FSCSX lagged.
Edit: deletions for correction of errors. For my post, I had used M* charts tab from the quotes page but today I rechecked with M* charts tools. I found the former to be erroneous quite a number of times. Only FSCSX lagged YTD and my guess is because of its overweight to MSFT. Wrong symbol for XSW was my screw up.
Similar to @Chinfist, I like the argument that software has lagged and that it may present an opportunity. Chips and the Mag7 seem to be losing momentum, but AI remains a force. I nibbled at IGV today. It holds MSFT, of course, but not anywhere near the percentage in the Fidelity fund mentioned. IGV would still be considered by most as concentrated because the top 10 positions represent 56% of AUM.
I don't think there is much that is undervalued by much in tech these days. Given what you're looking for, an active manager might work better for you than a cap-weighted index.
@WABAC, As always, on the money. That is what led me to start with FSCSX and the 25% in MSFT was a turn off for me. I do not mind focused / concentrated portfolios but 25% is too much for a Trump Presidency. I shall look for other active funds.
About AI, Teresa Heitsenrether, JPM Chief for AI was on CNBC in the last couple of days. I tried to find the clip on YouTube (Google AI must have blocked it!). She poured cold water on the productivity gain enthusiasm from AI. JPM has spent a lot of money on AI and has allowed approx 200K employees to use generative AI in their work. If you guys can find the clip, please feel free to post here.
Comments
As for Microsloth, their original position dates to 1995. There hasn't been much reason to dump it since then.
25% in one company and not sufficient discussion from the manager about it.
I know there is IGV. I will have to explore what else is available in the space.
Having said that I seem to make good money on funds I buy without knowing what is in them. There is a fund ( some of you own) I started buying a weeks ago and it kept going up and I kept throwing more money at it. Then last night I looked to see what is inside it and I froze from what I saw in it. So, following my methods may not be a recipe for making money.
ESW though has done well YTD. I have not looked why or what is inside it.Not sure why IGV and FSCSX lagged.Edit: deletions for correction of errors. For my post, I had used M* charts tab from the quotes page but today I rechecked with M* charts tools. I found the former to be erroneous quite a number of times. Only FSCSX lagged YTD and my guess is because of its overweight to MSFT. Wrong symbol for XSW was my screw up.
I don't think there is much that is undervalued by much in tech these days. Given what you're looking for, an active manager might work better for you than a cap-weighted index.
@WABAC, As always, on the money. That is what led me to start with FSCSX and the 25% in MSFT was a turn off for me. I do not mind focused / concentrated portfolios but 25% is too much for a Trump Presidency. I shall look for other active funds.