Polar Capital’s figures show that investors are now putting more money back into technology funds after an eight quarter period of net redemptions.
The shares of the London-listed specialist investment manager in technology jumped by a fifth following its net inflows totaling £56 million during the last quarter.
Polar reported net inflows of £327million in the March quarter, up from £136million in the previous quarter. The return on investment in technology is also increasing: £212 millions of net purchases were made in just March, and Polar reported that the positive momentum “continued through April”.
Polar reported that the total assets under management had increased from £19.6bn at the beginning of the year, to £21.9bn by the end March.
Polar Capital, a boutique asset manager founded in London in the year 2001 with a focus on technology stocks at its inception, was founded as an investment-led boutique. The Polar Capital Technology Trust, which has a market capitalization of £3.6 billion, is a popular investment vehicle for private investors looking to get exposure to the tech sector.
Polar Capital CEO Gavin Rochussen (64), said that the improved March results were “particularly pleasing”.
Polar saw net inflows into a number of specialist funds including biotechnology, artificial intelligence, Global Technology and its Asian Stars offering.
Rae Maile is an analyst with Panmure Gordon. She said, “Inflows will warm the heart of the market, especially after eight quarters straight of outflows. A roaring march has certainly helped.” Although it may be too soon to call a definitive turn, we have argued in our recent earnings upgrades that the return of dividend coverage is not so hard to imagine.
The technology stocks boomed between 2020 and 2021. They then slumped from 2022 to October of last year, as investors hoped that interest rates in the world would begin to fall. The hopes for artificial Intelligence has created more momentum in the industry.
Polar Capital shares closed at 540p after gaining 18%, or 821/2p.