Dresdner RCM Global Tech Fund's Price Boosts Cash, Dumps Oracle By David Ward
San Francisco, Oct. 31 (Bloomberg) -- Dresdner RCM Global Investors Managing Director Walter Price Jr. has increased the cash portion in the technology mutual funds he manages for Dresdner and Wells Fargo Inc., and has sold his Oracle Corp. stake, he said.
Price has increased the cash holdings in the Dresdner and Wells Fargo technology funds to about 30 percent from about 20 percent a month ago, citing a slowdown in the U.S. economy that could lead to a further decline in U.S. stocks, particularly technology shares.
In addition to selling Oracle shares, the Dresdner fund eliminated its stake in Motorola Inc. It reduced holdings in Ariba Inc., Vignette Corp. and Corning Inc., according to Price and regulatory filings. Price told Barron's last month that Ariba, Motorola and Oracle were among his top 10 stock picks.
``We're still worried about a hard landing in the first half of 2001,'' Price said in an interview with Bloomberg News. ``Clearly the economy's heading done, interest rates are high, so the question is: Do you hit hard, or slide into it?''
The Dresdner RCM Global Technology Fund, run by Price and co- fund manager Huachen Chen, was the second best-performing tech fund based on three-year returns, according to Morningstar Inc. Through Sept. 30, the three-year annualized return was 77.8 percent. Year to date, as of Sept. 30, it climbed 30.7 percent, and gained 183 percent in 1999. After the broad selloff in Nasdaq stocks this month, the tech fund is up 9 percent this year.
San Francisco-based Dresdner manages private money and mutual funds. Price also recently began managing a new fund, the Wells Fargo Specialized Technology Fund.
Price said Dresdner RCM Global Tech sold its entire position in Oracle Corp., the world's No. 2 software maker. Price said the company's shares, which are up 170 percent in the past year, are overvalued and he questioned the company's strategy of selling its software packaged as one product.
Price said that he believed Oracle Chairman Larry Ellison's strategy of attempting to sell a `suite' of software applications to businesses, similar to how Microsoft Corp. packaged and sold applications such as word processing and spread sheets together, wouldn't work.
Instead, many companies are relying on buying software components from various vendors, known as `best of breed' buying, purchasing customer management products from Siebel Systems Inc., and i2 Technologies Inc. for supply chain management software for example, Price said.
``I don't think the suite concept they are touting is getting traction,'' Price said. ``We're more cautious about Oracle than we were a month ago. We don't own any Oracle.''
What a bunch of freaking morons. I think anyone that has money in the Dresdner RCM Global Tech Fund should get the heck out. These clowns have sold a number of great techs at bargin prices. Grant you, they bought much lower. Yesterday was the bottom. They sold at a low price. The object here is to buy low and sale high. Looks like their lucky there years record is in jeapordy with that stupid move.