10 Questions With Firsthand's Kevin Landis

Kevin Landis' Firsthand Technology Value fund has rung up sizzling returns in its day. But now he likens the tech sector's collapse to a forest fire.

Talking With: Kevin Landis

Fund: (TVFQX Quote)Firsthand Technology Value

Assets: $2 billion

Managed Since: March 20, 1994 (inception

1-Year Return: - 49.8%/Beats 55% of Peers

5-Year Return: 20.5%/Beats 80% of Peers

Expenses: No-Load/1.91% Annual Expenses

Top-Three Holdings: PeopleSoft(PSFT Quote) Cabletron Systems(CS Quote) Legato Systems(LGTO Quote)

Source: Morningstar.

He should know. His flagship Tech Value fund is down almost 50% over the past year and that actually beats his average peer, according to Chicago fund tracker Morningstar. Based in Silicon Valley, Landis and his fund shop became the poster children of tech's mind-boggling run in the second half of the 1990s. Consequently, he has taken some heat as the sector has crumbled.

That said, Landis still beats his average peer over the past one, three and five years. In 1999's froth, the Tech Value fund rang up a 190% gain that beat 88% of competitors; in a bleak 2000, his 10% loss trounced a cool 96% of peers. Above-average gains with below-average risk is a portfolio manager's goal, and Landis has delivered.

So where is he investing his shareholders' money today and when does he think tech will turn around? Read on.

1. What's the case for investing in technology today?

Landis: The analogy I'm thinking of regarding the tech sector is a forest fire. The big trees look charred but they're still alive -- that equates to the big companies that have staying power, like an Oracle(ORCL Quote) or a Siebel(SBEL Quote) or a BEA Systems(BEAS Quote).

After the fire sweeps through, there are new plants that grow up. The fire clears it out and lets light and nutrients in and you can get new growth. ...