Tocqueville Opportunity Fund (TOPPX) is one of the best mutual funds. It focused on companies that are changing the world, and thus achieved this status.Converted assets include Shopify (shop), Adobe (ADBE) and Current service (just now).
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Investors know that digital technology is changing almost all industries and fields.
Paul Lambert (Paul Lambert) said: “The fund has companies that serve customers through digital transformation.” He served as the manager of this small fund of $99.2 million on November 1 for the first anniversary.
The coronavirus pandemic has tragic and costly consequences. But this has accelerated the widespread digital metamorphosis in the whole society. Lambert said: “Before the outbreak of Covid-19, we were in the third or fourth round of digital transformation.” “However, this has moved forward. Digital transformation is not only related to how consumers consume, but also The way the work is done is related to the improvement of the company’s efficiency. It is related to the improvement of the company’s production efficiency.”
Not surprisingly, according to Lambert’s estimates, as of June 30, the focus on digital transformation has brought the fund’s share of information technology stocks to 62%. Nearly 19% of its shareholder funds are spent on healthcare, and this field is undergoing profound digital alchemy.
Best mutual fund: “I like Shopify a lot”
How does Shopify help make Opportunity one of the best mutual funds? Shopify is the largest holding of the fund, accounting for only 9% of shareholders’ funds. Lambert said: “I like Shopify very much.”
Shopify provides an e-commerce platform that can help companies sell goods online. As many people avoid potential Covid-19 infection in the population, online shopping is becoming more and more popular. Shopping in physical stores has decreased.
Shopify charges merchants a royalty of 2% to 3% of the total sales of similar products. in contrast, EBay (EBAY) A 10% fee is charged, Amazon Lambert said (AMZN) levied 15%.
Shopify also cross-sells services to customers. Shopify is working with things like Facebook (FB) and Walmart (WMT).
In the past three quarters, Shopify’s earnings per share have increased by 65%, 217% and 950%, respectively. Lambert said: “They beat their numbers very easily in the most recent quarter, from 50 times the original 12-month sales to 30 times overnight.” “This is a great growth that continues to evolve Matter.”
Move to the digital office to help Adobe
Adobe has made the opportunity one of the best mutual funds by becoming a leader in software as a service (SaaS). Its software is vital to people who create web content. They have benefited from the pandemic. The long-term transfer of digital offices is also a boon.
Lambert said: “Adobe is basically the gold standard for any software company today.” “Smaller companies want to be like them. They want Adobe’s repeatability to be better than median revenue growth, close to 50%.”
Lambert said the stock is currently trading at approximately 19 times sales, which is at the high end of SaaS providers. But next year’s expected sales growth of 15% means that stock trading is “approximately 16 times the sales in 2021.”
Lambert also likes the fact that, unlike many companies in the technology sector, Adobe does not provide employees with a lot of stock as compensation. Lambert said: “In your opinion,’stock compensation’ makes a company’s price much more expensive.” Stock compensation dilutes the value of external investors’ stocks and dilutes net income.
Why one of the best mutual funds like ServiceNow
ServiceNow helps make it one of the best mutual funds by making opportunity value valuable to customers. How useful is it?Despite similar competitors, ServiceNow still wins the market for itself Oracle (ORCL) and sap (SAP), Lambert said. Lambert said: “Basically, the secret of ServiceNow is that they have this open architecture.” “For a company, it is easy to integrate the software on top of the existing old system.”
ServiceNow’s software is already helping companies working from home amid the coronavirus pandemic. Lambert said: “If you work from home and can’t access the network or log in, ServiceNow’s network can flag your problem before the call.” “They will fix it soon.”
Lambert said ServiceNow’s system can also identify and fix network problems that plague customers.
The company’s system speeds up the active service of new employees of customers by arranging new equipment required by customers, keeping them consistent with the human resources department, providing passwords and login names, etc.
“Their client list is enviable,” Lambert said. “They already own 80% of Fortune 500 companies. Their renewal rate is over 97%. Therefore, they already have a renewal rate, plus incremental market share, customer share growth, and sales and Selling new products. This is a very convincing story.”
What makes Tocqueville opportunity one of the best mutual funds
In which way is Tocqueville Opportunity one of the best mutual funds? The fund is the winner of the 2020 IBD Best Mutual Fund Award and has exceeded the Standard & Poor’s 500 Index in the 2019 calendar year and in the three, five and ten years ending December 31.
Since the beginning of the year, the fund is expected to win the IBD Best Mutual Fund Award again, with a return of 38.05%, while the S&P 500 Index is 7.94%. The fund’s income is almost twice the average income of 20.19% of mid-sized growth competitors tracked by Morningstar Direct.
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