Voyager Journeys In Search Of Growth and Bonds Soar On Sovereign Debt Concerns, Unexpected Increase In Jobless Claims

Things have changed. The $3.7 billion fund has taken about as hard a turn in the opposite direction as its guidelines allow. Tech hardware has risen to the top of its weightings from fourth.

Tech’s 18.23% weighting as of Dec. 31 was up from 12.5% at midyear, when health care was on top with 16.46%.

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“I buy the best combination of growth and valuation ,” said Thakore. “I let the others go. That helps me preserve capital to buy more growth names.”

Cypress Semiconductor (CY) is a tech name doing just that. Thakore added to his stake in the fourth quarter. The chipmaker’s Q4 earnings per share skyrocketed 300% vs. the year-earlier period. That ended a streak of EPS growth declines for seven quarters in a row.

Analysts polled by Thomson Financial forecast EPS growth of 530% this year vs. an 84% fall last year.

Cypress is seeing strong growth, while selling at an attractive valuation, Thakore says. And the firm has been strongly beating consensus. [Read the full article]

Yields on 10-year and two-year notes posted their biggest drop since mid-December as investors poured into government debt.

The jump into safe-haven assets came on the heels of a sell-off in the euro and Portuguese, Spanish and Greek stocks as growing fears over the fiscal problems of debt-laden southern members of the euro zone widened.

“Risk aversion is the key driver of the bid for Treasuries today,” said John Canavan, an analyst at Stone & McCarthy Research Associates.

“There was the data this morning,” he said, “but that was on the heels of all the concerns overseas, which has not only added to the risk aversion bid for Treasuries, but has also taken its toll on stocks.”

Adding to worries about Europe’s woes, U.S. workers filing for jobless benefits unexpectedly rose last week, sparking fears that Friday’s reading on payrolls for January would be worse than expected. [Read the full article]

Technology massed forward in January, with 11 tech industry groups pressing into IBD’s top 50 industry rankings.

Cisco Systems (CSCO)  in the computer networking group, which jumped to No. 63 from No. 126 was the lone Dow component to rise in Thursday’s broad sell-off.

The networking gear maker reported late Wednesday that its fiscal second-quarter sales and earnings jumped after a five-quarter slump. Both figures topped analysts’ consensus estimate.

The performance hinged on what Chief Executive John Chambers said was “dramatic, across the board acceleration” in demand. Other tech firms have echoed Cisco’s view.

On Tuesday, laser printer maker Lexmark’s (LXK) earnings cleared analyst consensus expectations for the fourth quarter by nearly 90%. The company said customers simply spent more money than expected in the fourth quarter. The stock ended Thursday up 23% far this week. [Read the full article]

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