Jensen: Price Was Right on Top Tech Firms
Hit by the downturn, valuations on fundamentally strong tech companies put them on the buy list for Jensen recently.
Greg Carlson: Investors who look at Jensen Fund have probably seen that over time, your strict investment discipline has kept the fund out of or very light in certain sectors and a little heavier in other sectors relative to the S&P 500 or the large-growth category. One sector that seems to have been on the rise just in terms of weightings within the fund is technology, can you talk about how that came to be?
Eric Schoenstein: Yes, absolutely. And your characterization is right. It has risen over the last couple of years. And one of the reasons for that is, technology has been an industry that certainly has always been interesting to us in terms of its performance, the opportunity set, there are high switching costs for customers that buy technology products, particularly in database applications and software. There is a need to have a constant upgrade cycle, but the other side of that is that valuations on technology companies tend to be pretty high. And the premium to the rest of the benchmarks, so to speak, it has been pretty high.