US stocks posted a strong fourth quarter of 2016, and the Technology sector was no exception, benefiting from the seasonal strength it tends to enjoy heading into year-end. Within the sector, semiconductor and semi-capital equipment companies posted some of the best gains. The proliferation of chips continues to expand due to future integration of processing video, graphics and other information. Power utilization has also improved, expanding the market opportunity.
The Saratoga Technology & Communications Portfolio continues to exhibit a large-cap focus with an emphasis on attractively valued companies and strong business models. The Portfolio tends to shun stocks surrounded by hype, high-valuation, and volatile price action as those characteristics often offer poor risk-reward profiles. We believe large cap Technology stocks continue to provide an attractive value as well as the additional benefit of aggressively returning capital to shareholders. Certain companies in the sector have the relatively unique characteristic of being economically sensitive to a growing economy but also using large cash balances and high-profit margins to fund growing dividends and buybacks.
Information contained herein was obtained from recognized statistical services and other sources believed to be reliable and we therefore cannot make any representation as to its completeness or accuracy. Any statements not of a factual nature constitute opinions which are subject to change without notice.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Saratoga Advantage Trust mutual funds. This and other important information about the Saratoga Advantage Trust's funds is contained in the prospectus, which can be obtained by clicking here, or by calling (800) 807-FUND, and which should be read carefully before investing. The Saratoga Advantage Trust's funds are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Saratoga Capital Management, LLC is not affiliated with Northern Lights Distributors, LLC. 1/16 © Saratoga Capital Management, LLC; All Rights Reserved.