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You've got to love the Wasatch familyof funds. This Utah-based fund family has a stellar record for fundmanagement, but today, only one of its funds remains open to newinvestors: the Wasatch Global Science & Technology Fund(WAGTX).
Ajay Krishnan manages this 3-year-old sector fund, and typicalof all funds within the family, uses a bottom-up approach toinvesting, is research driven, and is very price/earningssensitive. "Just in terms of our valuation discipline,"says Krishnan, "we're trying to capture growth, but wedon't think you have to take on undue P/E risk to getit."
That strategy has paid off. The fund was up 48 percent in 2003,and ranked No. 1 in overall performance over the past three yearsin Lipper's Science & Technology Category.
This fund is flexible and versatile. When tech stocks aremoving, its portfolio will bend toward them. When they're not,Krishnan will reallocate assets into health and sciences stocks,where the recurring revenue sources can be more stable. As forversatility, the fund may invest in companies around the world andof any market-cap size, but more typically small- to midcapcompanies.
"This is not a hot dotcom fund in the sense that it'sprobably not going to be at the top of the heap in an aggressivemarket," says Krishnan. But for those who like thesesectors-and their inherent risks-this fund might be oneto look into.
Dian Vujovich is an author, syndicated columnist andpublisher of fund investing site www.fundfreebies.com.
