While the progress of Instagram and Oculus have been fun to watch, Facebook’s advertising business has been the driver behind the stock’s 16% rise thus far in 2016. And that’s what Anthony Zackery, portfolio manager for Zevenbergen Capital Investments, will be focusing on. “They have 1.7 billion users and advertisers have taken note of that,” said Zackery. “They’ve shifted much of their digital ad spend to the platform, a statistic that hammers home Facebook’s relevance is that 90% of incremental digital ad spend has gone to Facebook or Google. So for the long term you have to think about advertisers.” The Zevenbergen Growth Fund is down 4.5% thus far in 2016, according to Morningstar. The $3.4 million fund large cap growth fund was launched in August of 2015. Zackery is also bullish on Salesforce.com , which has seen its shares rise 4% year-to-date. He said CEO MarcBenioff’s inability to beat out Microsoft for LinkedIn in June will not be too much of a setback for the company. “They are now the fastest growing cloud software company ever and they are on pace to hit $10 billion in revenue,” said Zackery. “We think they will continue to do well in their core sales automation vertical, but they are extending into marketing analytics and service which will drive growth for the long term.” Charles Schwab , down 13% year-to-date, is another one of Zackery’s favorites. The money manager’s stock plunged 20% in the wake of Brexit last month but has made back most of that loss. Zackery said Brexit will not be a long term problem, but low-interest rates will continue to weigh on its results. Still, he said the company will prosper by transitioning its do-it-yourself brokerage clients into advisory clients which is a “stickier customer set”. Finally, Zackery is positive on XPO Logistics , which has seen its stock rise 6.5% so far in 2016. He called XPO a “misunderstood stock” that will increasingly dominate the global supply chain. “Retailers don’t want to bother with shipping or logistics problems. They just want to be retailers so they will use the services of XPO,” said Zackery.
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