A year ago, elevated valuations and speculation over the direction interest rates were cause enough for Ben Rogoff and the Polar Capital Technology Team to position themselves cautiously. Now, inflation, rapidly rising interest rates, and unforeseen geo-political tensions have all negatively impacted equity markets, particularly more growth-orientated names and the technology sector.
Despite a challenging backdrop, there is plenty of opportunity, believes Ben. Valuations are now at much more attractive levels, offering an entry point into sub-sectors and regions that the team are excited about. Ben also describes some of the factors which might indicate a re-rating within the technology sector, such as private equity bids, strategic M&A, and tech companies adjusting their P&L’s in the face of slower growth.