Penelope Dobkin, who manages Fidelity Advisor Diversified International Fund, is banking on technology, health care and emerging markets
Last year, foreign investments buoyed the performance of the $5.5 billion fund Dobkin oversees, but this year the strategist is moving her focus into new sectors, like telecom and health care, Investor's Business Daily reports. In addition, Dobkin will diversify more holdings into emerging markets like India, which, is bending over backwards to attract foreign capital and showing sustained growth in consumer services and technology, she said. Dobkin said she is comfortable devoting up to 10% of the fund's assets to developing countries, a slight increase from last year.
If her opinions are right, developing markets will produce another year of bullish returns. Her fund held just 7.6% of its assets in technology stocks last year but that amount is likely to rise later this year, she added, as high-tech companies show more discipline in controlling costs and stockpiling cash.
If technology firms make good on promises for greater fiscal control, the sector could enjoy a three-year bull run, she said. She also holds out hope for large pharmaceutical companies to thrive under ongoing protection from regulatory delays in bringing new products to market.