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This fund’s secret to beating the Street

Amazon building moat around biz: Pro

Investors looking for the secret to beating the Street can perhaps look to one fund that is doing just that. T. Rowe Price's global technology fund has nearly doubled the return of its benchmark over the past year.

The fund's total return is about 35 percent compared to the Morningstar Tech Fund average, which is up about 18 percent.

"Sometimes to generate that strong performance you have to think a little bit differently," Josh Spencer, the fund's portfolio manager, said in an interview with CNBC's "Closing Bell. "

David Paul Morris | Bloomberg | Getty Images

That means sticking to his convictions when the rest of Wall Street seems to be turning against names he believes in.

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Case in point—, which is a top holding of the fund.

"I think investors have grown frustrated with Amazon's investments and they're maybe losing sight of the fact that this is still a company doing $100 billion in sales and growing at 20 percent annually," Spencer argued.

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"Their choices that they're making in investment spending, that's what's driving their lack of profitability today ... They are building a moat around their business."

The fund's other holdings include Alibaba, Qualcomm, Baidu, and Apple.

However, the strong performance of both the market and the fund has Spencer feeling a bit more cautious these days, and he's cut back on his position on Alibaba, which he bought on the IPO.

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"Technology is an area with rapid rates of change and we have to stay ahead of that change," he noted, emphasizing that the fund is focused on business fundamentals, not momentum.

"We know these companies very well."