A Portfolio To Profit From The Tech M&A Hot Streak: 'If You Can't Beat 'Em, Buy 'Em'


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Motif Investing constantly searches for “trends, ideas and world events that could create an investment opportunity,” and then selects 10 to 30 related stocks to build portfolios that weigh them based on their exposure to a this particular idea, event or trend.

This week, the site selected the Tech Takeout Targets Motif as the Motif of the week, alleging that tech M&A is in a hot streak, especially after the Avago Technologies Ltd (NASDAQ: AVGO) - Broadcom Corporation (NASDAQ: BRCM) $37 billion merger. But the high end isn't catching all eyes. “As the Wall Street Journal recently reported, the digital economy - whether it's cloud computing, mobile data, Big Data, or the Internet of Things - is driving growth globally, and tech and telecom firms are bulking up with acquisitions at a pace that would mark the highest total since 2000,” Motif explains.

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Related Link: A 'Gay Friendly' Portfolio Includes Apple, Microsoft & Disney...And It Beats The Market
So, let’s take a look at this portfolio, which provides an “opportunity to invest in companies connected to some of tech's most-talked-about buzzwords – with a potential additional bonus if these targeted companies are snapped up for attractive premiums.”

If You Can’t Beat ‘Em, Buy ‘Em

The triple T (Tech Takeout Targets) Motif has returned 23.3 percent over the past year, and 5.6 percent over the past month. In comparison, the S&P 500 gained almost 7.3 percent over the last year, but fell 0.2 percent in the last month.

This motif includes 25 stocks from three different industries. 56.3 percent of the portfolio’s assets are allocated to Software-as-a-Service (SaaS) stocks, 22.3 percent, to Business Intelligence and/or Analytics stocks, and 21.4 percent, to Cyber Security companies.

Related Link: Motif Investing 'Shares' A Social Networking Portfolio To 'Like'

Stock Allocation

Last, let’s take a look at the top stocks in this portfolio by allocation:

  • WEIGHT         STOCK
  • 5.3 percent    Imperva Inc (NYSE: IMPV)
  • 5.1 percent    AVG Technologies NV (NYSE: AVG)
  • 4.8 percent    Ellie Mae Inc (NYSE: ELLI)
  • 4.6 percent    Cornerstone OnDemand, Inc. (NASDAQ: CSOD)
  • 4.4 percent    Paylocity Holding Corp (NASDAQ: PCTY)
  • 4.4 percent    2U Inc (NASDAQ: TWOU)
  • 4.3 percent    RingCentral Inc (NYSE: RNG)
  • 4.3 percent    LogMeIn Inc (NASDAQ: LOGM)
  • 4.3 percent    Infoblox Inc (NYSE: BLOX)
  • 4.2 percent    Paycom Software Inc (NYSE: PAYC)
  • 4.2 percent    Qlik Technologies Inc (NASDAQ: QLIK)
  • 4.1 percent    Luxoft Holding Inc (NYSE: LXFT)

Crypto Whales Are Loading Up — Are You?

New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.


Posted In: Long IdeasNewsM&AMoversTechTrading IdeasMotif InvestingS&P 500