CLOU - CLOU: The Long-Term Opportunity Comes With Lofty Valuations
- CLOU is a relatively nouveau investment vehicle with just two and a half years of trading history. The fund leverages an equity strategy revolving around key names involved in cloud computing.
- With a portfolio of around $1.3 billion, CLOU offers a concentrated equity blend with a tilt towards mega/large-cap companies, most of which are drastically overpriced, though with robust growth prospects.
- 2020 illustrated that when stars align, the fund can deliver stupendous NAV growth, leaving bellwether ETFs like IVV and QQQ far behind.
- CLOU's exposure to grossly overpriced companies discussed in the article is something not to ignore.
- So please beware of lofty valuations and risks they beget, especially considering the 68 bps expense ratio. That said, CLOU is a Hold.
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CLOU: The Long-Term Opportunity Comes With Lofty Valuations