&l;strong&g;Ken Kam:&l;/strong&g; Tony, unlike most tech-fund managers it looks like you are planning to hold onto Facebook even after it is no longer classified as a tech stock. Is that right?
&l;img class=&q;dam-image getty size-large wp-image-962142728&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/962142728/960x0.jpg?fit=scale&q; data-height=&q;677&q; data-width=&q;960&q;&g; Facebook&s;s founder and CEO Mark Zuckerberg. (Photo by Chesnot/Getty Images)
&l;strong&g;Tony Mitchell:&l;/strong&g; I will be holding Facebook. I would never sell a stock just because it is reclassified. The value of the company has nothing to do with its sector classification.
&l;strong&g;Kam:&l;/strong&g; With Facebook at about $209, are you a buyer?
&l;strong&g;Mitchell:&l;/strong&g; I believe the upcoming sector changes may provide a buying opportunity, as there may be some short term volatility with Facebook being held by so many funds that will have to sell.
&l;strong&g;Kam:&l;/strong&g; There are 25 Technology ETFs and only 2 Communications ETFs, so I can see that there will be a lot more managers selling than buying when the reclassification takes effect. How much do you think Facebook and Alphabet will fall before you step in and buy?
&l;strong&g;Mitchell:&l;/strong&g; I&a;rsquo;m not looking for a specific price. It is enough to know that I will be buying when the Street&a;rsquo;s sell orders are big relative to the buy orders. Whatever discount this order imbalance creates, it will be short-lived. I like it when you can make a trade that has a high probability of turning profitable in a few days.
&l;strong&g;Kam:&l;/strong&g; What kind of return are you expecting to get from Facebook?
&l;strong&g;Mitchell:&l;/strong&g; I still see growth and value in Facebook. I believe that we will see Facebook trade above $300 within two years. That would equate to a 20% annual return over the next two years from its now all-time highs.
I&s;m going out on a limb here since I believe the highest target on the street right now is $270, but I&s;ve been going out on a limb with Facebook since it was $16 and it hasn&s;t missed my targets yet!
&l;strong&g;Kam:&l;/strong&g; Google&a;rsquo;s parent company, Alphabet, is also going to be reclassified from Tech to Communications at the same time. Would you also buy Alphabet for the same reasons?
&l;strong&g;Mitchell:&l;/strong&g; Google is another opportunity. As with Facebook, I believe there is still value and growth in Google (Alphabet).
&l;strong&g;My Take:&l;/strong&g; It is not often that you can foresee an order imbalance coming&a;nbsp;while there is time to plan for it.&l;/p&g;
Facebook and Alphabet may get more volatile in September, as Technology Funds and ETFs all have to sell at the same time. But by the end of September it will all be over and prices should return to normal.
If you would rather have a&a;nbsp;someone with an excellent track record with Facebook and Alphabet manage your exposure during this period, consider Tony Mitchell who manages a fund for my firm Marketocracy.
Tony&s;s&a;nbsp;fund is up&a;nbsp;over 17.32% this year through June 30. He has outperformed all U.S. equity mutual fund managers over the past 10 years. Facebook is currently his top holding.
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