How the ASX's answer to Oracle and SAP became a $13b market darling
Fund mangers have fallen in love with TechnologyOne, but after a surge in its share price, now it must deliver.
Sean Sequeira's first run with TechnologyOne didn't work out well: Tower Asset Management, where he was a fund manager at the time, sold its position at a loss in 2003 as the firm shuttered its investment business.
The second attempt was bittersweet. Sequeira scored a 40% profit for Australian Eagle Asset Management, but sold after four years of holding at just over $1 — missing out on its explosive growth since then.
Yet the fund manager, now chief investment officer of Australian Eagle, returned for a third time early last year, buying in at $16.50. An incredible run has pushed TechnologyOne up nearly 150% since then — and Sequeira has a tough choice to make.
“It’s not a cheap stock anymore, it is probably at the premium end now of valuation,” Sequeira said. “It would be difficult for us to justify buying any more here... but it is at a premium for a reason."
