Speechless No More (Forbes) Apple, Google and Netflix comprise 16% of the mutual fund. Apple and Google were the Jacob Internet Fund's top two holdings at the end of February. Netflix was No. 11. Welcome to TheStreet.com's Fund Manager Five Spot, where America's top mutual fund managers give their best stock picks and views on the market in a five-question format. Will tech continue to lead the stock market higher? Jacob: I think so. Tech is clearly seeing secular growth here. The overall economy has been improving even in a gradual way. And the earnings have been very strong and we expect it to continue. There's been a lot of worry about Google, particularly with the company's exit from China. Are you worried as well? Jacob: No. There's a lot of concern because they are pulling out of China. And, unfortunately, they will probably never be able to regain the kind of position they would like there. But the rest of their business is very strong. They will benefit from an uplift in ad spending, and their position has never been more secure here in the U.S. Can Apple continue to launch one smash hit after another? Jacob: Apple has shown a proven ability to roll out new products very successfully. The iPad is starting off slowly, but I think it will pick up steam and be a significant product for them. And there are a lot of catalysts for Apple in the future and for that reason we are very positive on it. Netflix ( NFLX) has risen 82% this year. How high can the stock go? Jacob: Netflix has had a very good year, but we still think the fundamentals are strong and the share price still looks attractive to us. The value proposition has improved with more streaming, more devices. And, competitively, with Blockbuster ( BBI) shrinking, they have been able to gain a lot of share. So it's really still a good proposition.
Two chip stocks you like are Cavium Networks (CAVM) and NetLogic Microsystems (NETL). Jacob: These two are providing semiconductor chips and processors for network equipment for wireless carriers. Right now there are real choke points with the wireless carriers dealing with an explosion in data traffic. And both provide processors at very high speeds at costs that are attractive, and carriers are having to spend to increase their capacity. -- Reported by Gregg Greenberg in New York.