Invesco Global Opportunities Fund has little interest in ‘Big Tech.’ Here’s why.

Rich valuations and the potential for more regulation have led this fund to shun the sector — for now

Time to read: 3 min

It is now three years since we were overweight the information technology (IT) sector and almost two years since we had more than 5% IT exposure in Invesco Global Opportunities Fund. While the performance of “Big Tech” has gone much further than we expected — the sector has dramatically outperformed the broader market since the start of 2013 (see Figure 1) — we believe the future for many of these businesses is more uncertain than most investors anticipate. Below, we outline two main reasons why we have been more hesitant about owning Big Tech stocks in recent times, and offer some perspective on the outlook from here.