Technology is the third-worst performing sector in the S&P this year, beating only healthcare and utilities.
This may surprise most investors, because a handful of tech stocks—Apple , Amazon and Texas Instruments —had a strong 2010.
"The only constant in the technology world is really the volatility," Jack Andrews, principal at the tech focused hedge fund Inflection Partners, told CNBC's "The Strategy Session" on Tuesday.
"There's lots of volatility in terms of product cycles getting shorter and shorter. In fact, there are some deflationary trends in technology when you think about the rise of open-source software for example," Andrews said.
"There's been a bit of a bifurcation in the market this year, where a lot of the stocks associated with cloud computing have done extremely well," he said.
"Then you got another bucket that is kind of the old school legacies—technology companies that are still trading at 10-14 times earnings—Microsoft and Oracle," Andrews said.
Going into 2011, he cautions this is a "tricky time of the year" for the tech sector.
"Often times companies have very large fourth quarters because of pent-up budget spending," Andrews said.
That said, there are certainty opportunities as long as investors are cognizant of the risks, he said.
One stock that Andrews remains bullish on is Sirius XM Radio.
"When you have accelerating growth, costs declining and a high margin business, it's an intriguing stock for 2011," he said
Watch CNBC's "The Strategy Session" weekdays at Noon ET.