Technology investing has undergone several revolutions since the turn of the century, from the aftermath of the dot-com crash to the rise of cloud computing, smartphones and artificial intelligence. Twenty-five years after launching DNB Teknologi, the team behind the strategy continues to apply the same core philosophy that has guided the strategy since day one: back technological progress, but remain skeptical when optimism turns into excessive valuations. That philosophy also underpins DNB TMT Long/Short Equities, a market-neutral strategy that brings the team’s long-standing technology stock-picking expertise into an absolute-return format.
“The equity fund DNB Technology has turned 25 years old. The investment approach is still the same as when the fund was launched on 6 August 2001,” says the team at DNB Asset Management. “The managers who established the fund are still at the helm, although new ones have also joined the team.”
“The equity fund DNB Technology has turned 25 years old. The investment approach is still the same as when the fund was launched on 6 August 2001. The managers who established the fund are still at the helm, although new ones have also joined the team.”
DNB Teknologi was launched on 6 August 2001 by Anders Tandberg-Johansen and Sverre Bergland, who remain at the helm 25 years later. The team has since expanded, with Erling Thune joining as a portfolio manager in 2008 and Erling Haugan Kise in 2014, alongside a broader group of investment specialists.
Over the past quarter-century, the team has maintained a clear preference for companies positioned to benefit from technological development, while remaining cautious about stocks where market expectations have become detached from fundamentals. That has helped the fund avoid some of the larger drawdowns seen across the technology sector, even if it has sometimes lagged peers during periods of extreme optimism.
“As a result, investors in the fund have enjoyed a somewhat ‘smoother ride’ compared with other technology funds, with slightly more modest returns when optimism has been at its peak,” the DNB team says. “More importantly, however, DNB Teknologi’s investors have not suffered nearly as large drawdowns as their competitors during years when technology stocks have experienced sharp declines.”
“Investors in the fund have enjoyed a somewhat ‘smoother ride’ compared with other technology funds, with slightly more modest returns when optimism has been at its peak.”
That balance between participation in long-term technology growth and valuation discipline has translated into strong long-term results. Launched in 2001, DNB Teknologi now manages just under €10 billion and has generated an annualized return of about 18 percent since inception, placing it among the stronger-performing technology funds over the full period.
The same emphasis on valuation discipline and downside protection is reflected in the team’s long/short strategy. Launched in 2010, DNB TMT Long/Short Equities applies the team’s TMT stock-picking expertise in a market-neutral format, targeting a zero-beta, low-volatility profile regardless of the direction of equity markets. The strategy currently manages approximately €180 million and delivered a strong return in the difficult market conditions of 2022, gaining 18.4 percent as broader equity markets came under pressure. The fund is currently flat year-to-date, after a strong rally in July and August offset losses accumulated earlier in the year.
