In May, she added DocuSign, a leader in the electronic signature market. Its technology has a wide variety of applications, with users ranging from individuals to top global enterprises. “Covid has accelerated the use of work-from-anywhere solutions, and DocuSign is a big part of that,” Zhang says. “Even when things return to normal, they should continue to capture market share. The market for e-signatures is huge, and penetration is still very low.” The company, which spends generously on research and development, is also expanding into e-notary services and contract management software.
Even though it was founded less than 10 years ago, fund holding CrowdStrike has already become a leader in the cloud-based cybersecurity market. Its platforms are already used by some of the world’s leading companies, universities, banks and health-care providers. “Their goal is to reinvent cybersecurity for the cloud era and to continue to create more sophisticated and robust security solutions than the cumbersome legacy platforms,” says Zhang, who bought the stock in the first quarter. “This is a real category disrupter in a field that has lots of room for growth.”
Athletic apparel manufacturer Lululemon Athletica, a top 10 holding since the mid-cap fund’s inception, had been on Zhang’s radar screen for several years before she bought it. The company has several catalysts for growth, including a new men’s line and its expansion in e-commerce and international sales.
Another holding Zhang has had since the fund’s beginning is Quidel Corporation, which develops, manufactures and markets rapid point-of-care diagnostic testing for infectious diseases, cardiac issues and toxicology. Its diagnostics are used mainly in physicians’ offices, hospitals, urgent care clinics and pharmacies. The company has delivered strong earnings this year, thanks to a worse-than-expected 2019-2020 U.S. flu season. Quidel also offers diagnostic tests for Covid-19, including the first rapid antigen test approved by the U.S. Food and Drug Administration.
The rapid test for Covid detects an active infection in just 15 minutes, and it’s the main reason the stock has been a leading performer. Currently, the test is generally limited to frontline health-care workers and those in nursing homes and other high-risk areas. Zhang says the company has stated it will be able to produce a more widely available combination Covid/flu test by the end of this year.
“This test will be a game-changer,” she says.