Value Managers Dip into the Battered Chip Sector
Component makers like Kemet top Marty Whitman's buy list.
There's no denying it's been a brutal year so far for technology investors. But as they say, every cloud has a silver lining. Although Morningstar's tech sector dropped 23.88% in February, some renowned value managers are finding some good bargains.
Take Barbara Marcin, manager of the Gabelli Blue Chip Value Fund (GABBX), for example. Marcin's value fund gained a relatively robust 11.1% last year--the Standard & Poor's 500 index lost 9.10% last year--thanks to decidedly nontech holdings like Philip Morris (MO). Marcin still invests in traditional value sectors of the market like financials, but she has more than doubled her exposure to the troubled tech sector within the past year.
Frank Stanton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.