In 2023, the £1.3bn Allianz Technology (ATT) portfolio managed by Mike Seidenberg saw impressive returns of almost 50%. However, these returns fell short of its benchmark, the Dow Jones World Technology index, which posted a gain of 48.2%. Seidenberg took over the portfolio in July 2022 after the retirement of longtime manager Walter Price.
Despite the strong performance of ATT, Seidenberg and newly appointed co-manager Erik Swords acknowledged that the dominance of the Magnificent Seven stocks in the index made it challenging to outperform. The portfolio held less exposure to these stocks than the index to mitigate concentration risk, which contributed to lagging slightly behind the benchmark.
Seidenberg and Swords emphasized the importance of diversification and avoiding undue concentration in a few high-performing stocks. They remain optimistic about the future performance of the portfolio and are committed to navigating the challenges posed by the Magnificent Seven stocks in the market.
Overall, while ATT experienced substantial growth in 2023, the managers are focused on building a resilient and balanced portfolio that can weather market fluctuations and deliver solid returns to investors over the long term.