The technology sector is fertile ground for growth and innovation. Investors who pick the right stocks in technology can often be rewarded with spectacular gains over the long term.
But risk and reward are two sides of the same coin. The best tech companies generally trade at elevated valuations, and they operate in a very dynamic and competitive environment. Besides, the technology sector generally carries higher beta and price volatility than other areas of the market.
With this in mind, the following paragraphs will be presenting a quantitative strategy focused on technology companies with above-average