Tech investor Dan Niles is shifting to reopening stocks. Here are his picks

Published Tue, Mar 23 202110:13 AM EDTUpdated Tue, Mar 23 202111:55 AM EDT

Satori Fund founder Dan Niles is shifting his focus to reopening plays from technology as the world recovers from the Covid-19 pandemic. "I'm more positive on reopening, inflation themes versus technology at this point in time," Niles said on CNBC's "Squawk Box" on Tuesday. Niles — known as a technology investor — only has one tech pick in his top five selections for 2021: Oracle . His others are JPMorgan , Magna International , Energy Select Sector SPDR and Roundhill Sports Betting & iGaming . Last year, all five picks were technology names. "If you really believe that we're all going to get vaccinated and economies are going to open up, that's where I think you want to be focused this year," Niles said. Niles added that technology valuations are "extremely high" after their sharp gains in 2020 as fiscal and monetary authorities implemented unprecedented stimulus measures. "As you look at last year, the pandemic helped a lot of tech stocks because people were stuck at home, they were buying things online, they were streaming videos online. ... And interest rates were really low," he said. "This year, both of those things are working against tech as we start to reopen economies and people go out, go on vacations and travel and drive places and interest rates are obviously going up." The Satori Fund — which is having its best start to a year in more than 17 years — is investing in financials like JPMorgan and energy plays. Niles also likes manufacturing company Magna International and sports betting company Roundhill. Niles said Oracle is also due to outperform this year. "With Oracle, you have to remember it's almost the opposite of all the tech names people like," Niles said. "They haven't grown revenues in three years, the multiple is very low. They've got a dividend yield above the market." Niles highlighted Oracle's cloud business as a potential driver of revenue growth this year. He also said the company's autonomous database business generates about $1.5 billion in revenue and is growing at more than 100% a year. Correction: An earlier version misspelled Satori.

Investor Daniel Niles.

John Chiala | CNBC

Satori Fund founder Dan Niles is shifting his focus to reopening plays from technology as the world recovers from the Covid-19 pandemic.