China’s post-Covid reopening could be spark for tech sector – Polar Capital’s Rogoff

Trust’s NAV per share up for first month since July

Polar Capital Technology Trust manager Ben Rogoff


Polar Capital Technology Trust manager Ben Rogoff (pictured) has said he is optimistic about a recovery for the tech sector in 2023 after a torrid year. In the £2.8bn trust’s November factsheet, he suggested China’s long-awaited post-Covid reopening could spark a recovery for the sector in the new year.

“One area in which news flow has already begun to improve is towards China reopening, where the government has adopted a more supportive posture and there likely exists pent-up demand to support a recovery into next year,” said Rogoff. “We have modestly increased our positioning here given very low valuations, and extremely negative sentiment.”

The trust posted positive monthly performance figures for the first time since July, with net asset value (NAV) per share up 2.9%. This followed a miserable year to date, during which the NAV per share has dropped 24%, with the Dow Jones Global Technology Index benchmark returning -19.8% over the same period.

The London Stock Exchange-listed trust invests solely in technology businesses, with US-based firms making up the bulk of the portfolio. Rogoff, who has managed the trust since 2006, added: “While we are tactically cautious near term, we have been carefully shifting the portfolio into some of the higher-growth areas and companies, which have long-term differentiation and strong balance sheets.

“A weaker dollar, lower oil prices, and compression in yields have not yet been reflected in greater investor enthusiasm for the sector. For investors who share our view – that a deep recession is avoided – then an amelioration of macroeconomic headwinds should ultimately drive a recovery in technology fundamentals, risk appetite and relative performance during 2023.”

See also: Axa IM appoints portfolio manager from Polar Capital


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