3 Large-Value Funds Heavy in Tech
These Morningstar Medalists defy conventional wisdom of what qualifies as a value stock.
Susan Dziubinski: Hi, I'm Susan Dziubinski with Morningstar.com. Investors don't usually associate technology stocks with value investing. But given the many different ways one can define value, it's not unheard of for value investors to own technology stocks. Here are three Morningstar Medalist funds in the large-value category holding more than 20% of their portfolios in the tech sector.
Greg Carlson: Bronze-rated Artisan Value is a large value fund that's held a significant stake in tech stocks over time. For example, for the past several years, both Alphabet and Apple have been near the top of the portfolio as its managers feel those companies still look attractive based on their cash flows. The fund also bought Facebook in the second quarter of 2018 after the stock was hit hard over regulatory concerns. As a result, the fund's tech weighting is recently 22% of assets, roughly double that of the Russell 1000 Value benchmark as well as the typical large-value fund.
Susan Dziubinski does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.