Over the past weeks we've talked about two big megatrends: health and consumption. Today, technology is ubiquitous in our everyday lives. In Renta 4, a fund has been created -Renta 4 Megatendencia TecnologÃa- that joins this idea, which indicates that we are in the fifth minute of the game despite everything that technology companies have raised in recent years: let's remember Nasdaq. AI and the so-called 'Magnificent Seven': Meta, driven largely by Amazon, Apple, Microsoft, Alphabet, Tesla and Nvidia.
Good performance in these months continues to focus on large US companies, followed by cyber security companies which set the expected positive tone for the sector.
In this investment fund, the portfolio consists of 42 companies, of which 40% are TOP 10. They are highly confident companies with very strong relative positions in their respective markets: they are growing, making money and generating large amounts of operating and free cash. Any loan that is important in an environment where higher rates lead to refinancing at higher rates ultimately puts pressure on the income statement.
But which companies do you invest in? in different fields. As for big tech companies, Amazon, Alphabet, Meta Platforms, Microsoft, Adobe, Tencent and Alibaba stand out; Semiconductors: Entegris, ASML or Infineon; Payments: Adyen, Paypal, Visa and Mastercard; Travel and leisure: booking or competing groups; Cybersecurity: Check Point Software, Datatag or Palo Alto; Games: Netease or Electronic Arts; and programmatic advertising: PubMatic.
An issue to consider is the volatility of this type of company: a 36% drop in 2002 followed by an increase of 44% in 2023 and 5% in 2024. Long term investments and according to our risk profile.
