Higher U.S. bond yields could cause investors to herd into technology stocks, according to one fund manager.
While the traditional thinking is that higher yields make bonds more attractive and could see rotation from equities into fixed income, Ben Rogoff, a fund manager at Polar Capital, said that more money could go into technology names.
"I think there's a very strong argument that says that actually you might end up seeing proper herding into companies that could deliver genuine secular growth against a backdrop where markets struggle to add PE (price to earnings ratio) because increased volatility, all things being equal, should demand lower prices," Rogoff told CNBC's "Squawk Box Europe" on Monday.
The 10-year U.S. Treasury yield hovered just under 3 percent on Tuesday. Bonds are usually seen as a safe-haven investment over equities. But with central banks keeping interest rates low in the past few years, government bonds have had low yields. Now, as the U.S. Federal Reserve and other central banks begin to raise interest rates, bond yields should go higher.