The technology sector has traditionally served as an essential constituent in any investment portfolio, and we believe that innovation and invention often associated with this sector will continue to drive the next leg of growth in the stock market. We seek out technology companies that have proprietary technologies which provide them with a competitive advantage for sustainable growth, and favor companies that have a stellar track record in pushing the frontiers of technology in their respective subsectors. At BSD, we believe buying and holding these companies that are trading at reasonable valuations will maximize our returns and minimize our risks over the long term.


BSD has formed an Investment Advisory Committee for the team to seek out global technology themes and trends, to overweight and underweight various tech subsectors. The Committee consists of the BSD Team, Industry Specialists and Entrepreneurs that have significant experience in the technology field, giving us a unique insight towards the forces driving technology development and adoption.


We utilize a proprietary system to identify potential investment opportunities in the universe of technology stocks through quantitative means. Many metrics are considered, including market capitalization, growth stage, margins, and recent price action that may indicate oversold/overbought stocks.


The attractiveness of a tech subsector is determined through extensive research on market trends and Total Addressable Market. The BSD assesses whether a sector fits our growth stage criteria for the stocks we hold in our portfolio. Levels of competition in a subsector is also crucial in our assessment, to determine if long term value exists for all of our investments.


After filtering the tech universe for suitable investments for our portfolio, we engage in further due diligence by analyzing company business models, quarterly/annual reports, earnings/conference calls, and proprietary research. Recent events and news are analyzed more closely to determine if any material changes have occurred in the company that may lead to a secular shift in business model and, ultimately, price trends.


We believe that sound diversification within the tech sector is key to maximizing risk-adjusted returns. We hold 35 to 40 stock positions across 10 technology subsectors, to gain exposure to the broader market where opportunities in other industries may exist. In addition to the stock selection process, we also utilize various hedging strategies to minimize volatility and drawdowns. We use a selection of derivatives to generate additional alpha for the portfolio by keeping a close watch on market sentiments and macro-driven events, positioning our portfolio accordingly.