Top European Funds of the Year Bet on Tech Supremacy in 2021
- Value rotation poses risk to this year’s outperforming funds
- Shift to digital companies fueled 2020’s winning stocks
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Some of this year’s best-performing European equity fund managers are betting their investments in technology stocks will reap further returns in 2021, even as optimism over coronavirus vaccines fuels a rally in value shares, threatening the funds’ performance.
Among funds with assets exceeding $1 billion that focus on western European equities, all 10 of the best performers had a tilt toward the digital, software and internet technology sectors, according to data compiled by Bloomberg. This is no surprise considering that the market recovery has been driven by growth stocks, but also makes these funds more vulnerable to a possible outperformance of cheaper value and cyclical companies in 2021 as the vaccines revive economies.