There is no doubt that a number of investors lost a big chunk of their investments on the sickening drop in oil prices as most of them hold on to their stakes, on hope that the situation would reverse sooner than later. Tanaka Growth Fund is one prescient investment firm that jumped ship as the drop started becoming persistent. Right into the likes of Apple Inc.(NASDAQ:AAPL), Synaptics, Incorporated(NASDAQ:SYNA) and Gilead Sciences, Inc.(NASDAQ:GILD) seen as stocks that should guarantee impressive returns in the years to come according to its manager
Tanaka Growth Fund, Portfolio Manager, Graham Tanaka, rescued his investments by shifting his allegiance to airline stocks that have enjoyed an impressive rally on the drop of oil prices. The portfolio manager added to his core holdings in technology and biotech stocks on exiting the energy sector while remaining confident that Apple Inc.(NASDAQ:AAPL) will turn out big this year and should advance to $157 a share in the next 12 months.
Tanaka notes that while the exit of energy stocks helped boost the funds fourth-quarter returns, a diverse plan in terms of holdings both in technology and health sector assisted in delivering huge returns. Among the big contributors on the fourth quarter, earnings include Apple Inc. (NASDAQ:AAPL)and Synaptics, Incorporated (NASDAQ:SYNA).
Tanaka is betting big that Apple Inc.(NASDAQ:AAPL), Synaptics, Incorporated (NASDAQ:SYNA) and Gilead Sciences, Inc.(NASDAQ:GILD) will turn out big this year reiterating that the company’s earnings will surpass the expected market average growth rate of 8%. He notes that these company are trading at a significant discount to the markets average of 16 for next year’searnings estimate.
The move to exit the energy sector seems to have paid off for TGRF seen by the fund being ranked by Lipper as number one among the fast growing funds on a year to date. The fund has soared by 6.88% since December 31, 2014 vs. the S&P 500’s 1.69%. In the wake of the decline in oil prices, Tanaka shed his investments in Anadarko Petroleum Corporation (NYSE:APC) for $86.65 a share having bought the same for $75 a share. Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) also received the ax at $44.52 a share having bought the same in 2013 for $24 a share.
On exiting the oil stocks, Tanaka shift his attention to JetBlue Airways Corporation (NASDAQ:JBLU), buying shares at $14.66 a share which has since risen t $16.74 a share. Tanaka also bought into Alaska Air Group, Inc. (NYSE:ALK) at $54.68 a share, investments that have since soared to $62 a share.