MFM Techinvest Technology, however, holds none of the large US consumer-tech companies. Instead it prefers to invest in small and mid cap companies.
Its different approach has been rewarded with 41.92 per cent growth over one year – the highest in the sector – compared with 24.2 per cent for the sector average.
The fund also has a strong performance over three years, achieving 70.16 per cent growth compared with an average of 56.06 per cent, making it second only to AXA Framlington Global Tech.
"We don’t rule out buying large cap stocks, we just find better value in mid and small cap companies," said Darren Freemantle, who co-manages MFM Techinvest Technology along with Conor Macarthy.
"We have a stock-picking, bottom-up approach. We are interested in enablers – the picks and shovels of the tech sector – rather than the consumer angle."
"As far as I’m aware, we are the only fund that offers small cap stocks on both sides of the Atlantic."
Performance of funds vs sector over 1-yr
Source: Financial Express Analytics
The largest fund in the IMA sector, Henderson Global Technology, invests more than a third of its £425.5m assets under management in the usual suspects: Apple, Google, Microsoft et al.
The fund has returned just 17.68 per cent to investors – 6.52 per cent less than the sector average. It has also been more volatile than MFM Techinvest Technology, taking on 18.77 per cent volatility over one year compared with MFM Techinvest Technology’s 17.08 per cent.
Managers and investors are predicting that the technology sector will offer the most compelling growth story for investors in 2011.
"The tech sector has been characterised by big developments pushing it forward over the years," Freemantle added.
"It was mainframes in the 1970s, personal computers in the late 1980s and the dotcom revolution in the 1990s. The next exciting thing in the industry is mobile internet."
Macarthy and Freemantle have identified shortcomings in the technology sector and adjusted their portfolio to reflect where they think the growth will occur.
"Broadband infrastructure is woefully underdeveloped and needs a lot of investment," said Freemantle.
"Our second-largest holding is in Sandvine, a company that is developing the way information is pushed around the internet. This will increase the efficiency of broadband."
Freemantle says that if online video can be monetised then there will be lots of growth there.
"Our largest holding is in Blinkx, a company that is aiming to do just that," he finished.