According to portfolio manager Philip Ripman of Storebrand Asset Management, cybersecurity is an area that presents opportunities for investors right now. “I think many different areas of the market are still attractive, especially in the area of cybersecurity,” he told CNBC Pro Talks on Wednesday. It’s an area that has yet to “experience such growth,” he added. The Global X Cybersecurity ETF is up nearly 9% year-to-date — similar to the S&P 500, but underperforming the Nasdaq, about 20% higher year-to-date. Stock Picks Ripman, who manages a $1 billion Storebrand Global Solutions fund that focuses on sustainability, is particularly bullish about two cybersecurity companies: Palo Alto and Crowdstrike. “These companies are well positioned for further growth,” he said. Palo Alto is “a bit of an older business model,” Ripman said, but added that it is set to appeal to smaller companies that will actually add to its portfolio of services. . Crowdstrike, on the other hand, is one of the “top growth stories” in the space of the last 5 to 10 years. “And it’s clearly one of those companies, a terminal security company, but really a one-stop shop for your security needs,” said Ripman. Both stocks are among the top 10 holdings in his fund, with Palo Alto making up 3.8% of the fund and Crowdstrike at 3.7%. Shares of Palo Alto are up about 37% year-to-date, according to FactSet, and analysts for the stock see the stock’s 17% upside potential. About 77% of analysts give the stock a buy rating. Crowdstrike shares also skyrocketed during the same period, up about 30%. According to FactSet, analysts think it has more than 22% upside potential, with 76% rating the stock a buy. Standing out from large-cap tech Looking ahead, Ripman thinks there’s a chance for a pullback, depending on whether a recession hits. And he points out that the fortunes of the US stock market are dominated by a few large-cap companies. “Without the performance of those four to five companies, the market would be very different,” he said, adding that the artificial intelligence trend has “definitely changed the story” for four of the companies. that company. Seven companies — Apple, Microsoft, Nvidia, Meta, Tesla, Amazon, and Alphabet — accounted for 95% of the S&P 500’s total profits in the first quarter. Ripman doesn’t hold any big-cap tech names like Apple or Microsoft in his portfolio, although the sector is loved by investors. Instead, the portfolio manager at Storebrand Asset Management selects stocks based on topics he believes will be “essential in the years to come,” he told CNBC Pro Talks on May 17. such as renewable energy and smart cities. Ripman’s fund avoids companies that make more than 5% of their revenue from fossil fuels, tobacco, alcohol, war, and other lynching-related activities. It topped the 10-year annual return (15%) on Morningstar’s list of global large-cap funds.