Technology stocks are at their cheapest in 20 years and the weaker dollar will likely benefit the entire sector, hedge fund industry pioneer Lee Ainslie said Tuesday.Ainslie, whose Maverick Capital Management oversees $11.4 billion in assets, said a pool of value tech stocks including Adobe Systems Cisco Systems Dell Inc. Hewlett-Packard International Business Machine Intel Corp. and Microsoft provide a free-cash-flow yield of 12 percent this year and 13 percent in 2011.
Free-cash-flow yield is one of the best indicators used by fundamental analysts to select and assess companies. The higher the number, the more free cash per share is being generated by the company.
Ainslie, who got his start with hedge fund industry legend Julian Robertson of Tiger Management and served as Tiger's technology analyst, said technology stocks are Maverick's "largest exposure of any sector, any year" in his firm's history.
Maverick, one of the world's biggest hedge funds which is located in Dallas and New York, had about a third of its stock portfolio invested in technology companies — more than any other sector — at the end of June, according to regulatory filings. (more)
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