Sydney-based Loftus Peak Ltd, home of the Loftus Peak Global Disruption Fund that’s outperformed most peers, is sticking with bets on some high-flying technology shares as investors question their valuations.
Hefty price tags on companies like Apple Inc. and Amazon.com Inc. might be justified given the quality of their businesses, said Alex Pollak, chief investment officer at Loftus Peak Ltd.
His Loftus Peak Global Disruption Fund has returned almost 23% this year and has outperformed 99% of peers over one-year, three-year, and five-year time spans, according to data compiled by Bloomberg.
Apple and Amazon “are below our valuation targets, having regard for the rapid growth in profitability that they have delivered and look like they will continue to deliver,” Pollak said in an interview in mid-August, adding that his view hasn’t changed since the tech sector selloff in the past week… Still, he sold out of Tesla Inc. as its valuation crept up. Pollak held the stock for five years, but was wary of balance sheet and governance issues within the company, he said.
MacDailyNews Take: Stay the course.
