Risk of Overheated Tech Rally May Challenge High-Performing Investment Fund


Nicole Kornitzer, portfolio manager for the Buffalo International Fund at Kornitzer Capital Management, Inc., is warning of risks of the tech rally running too hot. The Nasdaq 100 enters bull market at the end of March, resulting in European tech stocks leading the performances for twenty twenty-three. To Kornitzer, the tech sector is looking very expensive and could be classified as “overvalued.”

Kornitzer recommends high-quality international companies with strong profit growth as an alternative investments, such as SAP SE, Dassault Systemes SE, and Hexagon AB. Health-care companies may also provide some resilience to economic cycles, such as AstraZeneca Plc, Roche Holding AG, and Merck KGaA.

The Buffalo International Fund is managed by Kornitzer Capital Management and presently oversees approximately $600 million. The fund has returned approximately 13% year to date and outperforming around 88% of its peers according to Bloomberg data. The benchmark FTSE All-World ex US Index is also up around 6% in the same period.

Kornitzer Capital Management Inc. is based in Paris, France and manages AUM of over 7 billion USD. It is founded by Henry Kornitzer in 2008 and presides over a range of equity and debt funds, and provides asset management for institutional clients and retail investors in the US and Europe.

Nicole Kornitzer is the Paris-based Portfolio Manager of the Buffalo International Fund and highly regarded for her skillful management of the fund’s portfolio. She is guided by the principles of quality, profit growth, resilient sectors, and sound choice of investments. She is touted for her strategic and forward-thinking conversations transitioning the markets.