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Growth Managers Look Beyond Technology Stocks

Ralph Wanger, Peter Trapp, and Conrad Herrmann are still circumspect about tech.

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The term growth stock no longer is synonymous with technology, and mutual funds no longer can remain passive investors if they hope to curb egregious executive compensation and other corporate governance abuses, three veteran portfolio managers said at the Morningstar Investment Conference Tuesday.

Before the Nasdaq stock market bubble burst, tech stocks were the primary, and in some cases only, concern of many growth investors. After two years of unremitting losses, however, professional and individual investors who became inextricably enthralled with "new economy" stocks--and the idea that you could adequately judge companies by the clicks and eyeballs their Web sites attracted instead of the cash flow and earnings their businesses generated--look shortsighted.

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Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.