Cybersecurity is one particular spot that offers an opportunity for traders correct now, according to portfolio manager Philip Ripman of Storebrand Asset Management. “I feel different locations inside of the current market are continue to desirable, specially in the cybersecurity parts,” he informed CNBC Professional Talks on Wednesday. It can be one particular area that nevertheless hasn’t “professional that variety of expansion,” he additional. The World wide X Cybersecurity ETF is up almost 9% yr-to-date — equivalent to the S & P 500 , but underperforming the Nasdaq , which is close to 20% better so significantly this year. Stock picks Ripman, who manages the $1 billion Storebrand World Solutions fund, which has a concentrate on sustainability, is bullish on two cybersecurity companies in specific: Palo Alto and Crowdstrike . “These organizations are very well positioned for further expansion,” he mentioned. Palo Alto is “a minimal little bit of an older organization model,” reported Ripman, but added that it’s established to snap up more compact businesses which will truly add to its portfolio of choices. Crowdstrike, on the other hand, has been one of the “premier expansion tales” in the area more than the previous 5-to-10 decades. “And it clearly is one of all those businesses, which is an endpoint security enterprise, but definitely is a just one-prevent-store for your safety demands,” Ripman mentioned. Both of those stocks are amid the top rated 10 holdings in his fund, with Palo Alto accounting for 3.8% of the fund, and Crowdstrike at 3.7%. Palo Alto shares have soared all-around 37% yr-to-date, and analysts covering the inventory give it a more 17% likely upside, according to FactSet. Some 77% of analysts covering the inventory give it a get score. Shares of Crowdstrike have also jumped in the exact interval, up around 30%. According to FactSet, analysts give it a additional 22% probable upside, with a 76% possessing a acquire score on the stock. Staying out of mega-cap tech Wanting in advance, Ripman thinks there is a probability there will be a pullback, relying on whether a economic downturn arrives to fruition. And he pointed out that the fortunes of the U.S. inventory current market are dominated by a couple of mega-cap providers. “With out the overall performance of those people four to 5 firms, the current market will be hunting pretty differently,” he said, adding that the synthetic intelligence trend has “absolutely shifted the narrative” on four of those businesses. 7 businesses — Apple , Microsoft , Nvidia , Meta , Tesla , Amazon and Alphabet — accounted for 95% of the S & P 500′s complete return in the initially quarter . Ripman won’t keep any of mega-cap tech names these as Apple or Microsoft in his portfolio, regardless of the sector getting an trader beloved. Alternatively, the portfolio manager at Storebrand Asset Management selects stocks dependent on the themes he thinks will be “essential in the several years to occur,” he instructed CNBC Professional Talks on Might 17, these kinds of as renewable vitality and intelligent metropolitan areas. Ripman’s fund avoids businesses that make more than 5% of their revenues from fossil fuels, tobacco, alcoholic beverages, war and other vice-associated things to do. It ranks best for 10-12 months annualized returns (15%) on Morningstar’s list of worldwide mega-cap equity cash.