Can Tech shares recover?


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This article from Daily Mail is worth reading...

Hold your nerve in the tech shake-out, so long as you backed companies with credible growth prospects. Otherwise, cut your losses, says Henderson Technology fund* manager Brian Ashford-Russell.

From March to October, many stocks fell 80%. Since then, some have halved again. Not much fun when you are running an £800m fund (now down to £520m).

Ashford-Russell says: 'By last month we had 15% in cash, which rose to 22% as values fell. Now it is 14%. There is still bad news to come but with Nasdaq back in the mid-2000s there is some value, more in the US than in Europe.'

He is a modest buyer of stocks such as JDS Uniphase and Broadcom. A star of the investment trust* sector, Henderson Tech turned £1,000 into £3,900 in three years and earned Ashford-Russell a £6.4m bonus. The shares fell 23p to 352p, still 15% above assets.

Long-term returns from tech have been 20% a year and will get back to that, says Ashford-Russell. But probably not just yet.