'We have on our hands a fully fledged bull market in technology'

A number of fund managers are backing technology stocks. 

One of Britain’s most respected fund managers has called the start of a technology "bull market", predicting that shares in the sector will soar over the next decade.

Mr Train, who manages a number of funds and investment trusts, including the Finsbury Growth & Income Trust, has urged investors to pile into technology firms. Mr Train said the success of Twitter’s stock market debut demonstrated that the sector was set for a multiyear growth spurt.

Last week Twitter shares almost doubled on their first day of trading in New York, jumping as high as $50.09. Today the shares are worth $49.20, well above the initial public offering price of $26 a share.

Mr Train also pointed to the fact that the US technology exchange – the Nasdaq – is up 30pc so far this year. This is the second best performing stock market in 2013, behind Japan.

Mr Train has around 30pc of his funds in technology companies, in names such as Nintendo and eBay. The fund manager also has stakes in a number of British firms that have placed a big emphasis on technology, such as stockbroker Hargreaves Lansdown.

“We have on our hands a fully fledged bull market in technology, particularly digital technology, which is pulling along related industry sectors such as health care and media,” said Mr Train.

“The UK may not be able to boast a Facebook, Google or Twitter, but we can table the providers of must-have online tools for the global academic, legal, investment banking and mining industries, through companies such as Reed, Fidessa and Euromoney.”

Previously Mr Train has ruled out the prospect of another dotcom-style crash. The fund manager said this technology boom was being fuelled by job creation, something which did not happen in the bust of the last decade.

Mr Train is not alone in backing the sector to perform strongly in the coming years. The Scottish Mortgage investment trust, managed by Baillie Gifford, has big stakes in technology firms, including Amazon, Baidu, Google and Apple.