Active Equity Investment Strategy in Technology Sector

As an equity portfolio manager at a mid-sized investment firm, you are required to develop a fundamental active equity investment strategy that focuses on identifying undervalued stocks within the technology sector. Your task is to outline the key components of this investment strategy, detailing the qualitative and quantitative methods you would employ to assess potential investment opportunities.

In your response, discuss the importance of both qualitative factors (such as management quality, competitive positioning, and industry trends) and quantitative metrics (like P/E ratio, dividend yield, and revenue growth). Additionally, provide an analysis of how you would manage the risk associated with your active strategy and the role of portfolio diversification in mitigating these risks. Finally, explain how you would monitor and evaluate the performance of your strategy over time.