From the clichéd term ‘star’ fund manager, to a lack of portfolio diversification, through to the tense days as England’s lone star steps to a World Cup penalty shootout – there are usually tears or tantrums involved.
Keyman risk can reverse many a fortune if said hope moves off in a different path.
Take Imagination Technologies. Long-time bed-partner of technology bedrock Apple, one would have thought they were in safe hands.
Josh Spencer, portfolio manager of the T. Rowe Price Global Technology Equity Fund, told how a recent trip to Silicon Valley confirmed convictions that the sector – from emerging technologies to more traditional IT companies – certainly operates independently to the overall economy; dancing to its own tune, if you like.
He said: “It is paramount to identify the companies that are able to gain market share through levering technology in new and innovative ways.
“We believe the ability to identify change, disruption and extreme outcomes within global technology – and how to best manoeuvre around these – is vital in delivering returns and alpha.”
Arguably a sector that is steeped in change and disruption ought to be better prepared for ‘shocks’ such as a long-term technology and intellectual property (IP) partner moving on.
