One of the top performers in the U.S. growth fund sector has lost his appetite for tech. Jerry Jordan has booted almost all his Apple (AAPL) holdings from his portfolio, and he's done the same with Google (GOOG). Both, Jordan says, have become too expensive. In fact, he's getting out of almost all U.S. and European tech companies for that reason -- and is turning his attention to China.
Jordan tells Reuters, "The growth [in China] is much faster, it's much more of a green field opportunity."
NetEase.com (NTES) and Sohu.com (SOHU), Jordan believes, will be the hot items for investors this holiday season. The Jordan Opportunity Fund, which has been around since 2005, has generated an average annual return of 3.5% for the past three years, beating 365 out of 367 similar funds tracked by Lipper. It doesn't seem like a big accomplishment, but the average comparable fund has lost 4.4% a year over the same time period, and the S&P 500 is off 5.6% annually.
Jordan's record over the past decade, which includes his work with institutional investors before opening his current fund, has stayed ahead of the S&P by an average of 6 percentage points a year.
Jordan continues to put his capital in commodity producers, since he thinks demand for raw materials will outpace supply more and more. This dragged the fund last year, because oil prices collapsed, but waiting through the downturn appears to have paid off. He's won with coal producer Massey Energy (MEE) and Oceaneering International (OII), an oil services company.
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