The $941 million Fidelity Select IT Services fund  has returned an average of 10.9 percent a year since March 10, 2000, when the Nasdaq Composite hit its record high, according to Lipper data. That's more than double any other technology fund tracked by Lipper, and trounces the 0.1 percent a year generated over the same period by the PowerShares QQQ ETF, the most popular exchange traded fund tracking the Nasdaq.
"This is a fund that doesn't have Google, doesn't have Microsoft. This is a wholly different subset of technology than most investors are familiar with," said Todd Rosenbluth, director of mutual fund research at SP Capital IQ.
The fund invests at least 80 percent of its assets in firms that provide day-to-day services such as payment processing and web hosting, rather than looking for those with zooming growth, said Kyle Weaver, 38, who has been lead portfolio manager of the fund since 2009. The fund has largely kept the same investment approach since its inception, he said.
"We're looking for companies that have a high degree of recurring revenue that aren't very glamorous and operate in the background of our lives instead of front and center," he said.
Instead of Apple and other big household names of the Nasdaq, Weaver owns large positions in companies that few lay investors have heard of, such as Vantiv Inc, a payments processing company, and data analytics company Cognizant Technology Solutions Corp.
Still, the size of the bets the fund takes on companies may give investors pause, Rosenbluth said.
"This is a very concentrated fund and while it has companies like IBM that people have heard of, it has a mixture of small and mid cap companies that will fly below the radar for most investors," he said. The fund charges 83 cents per $100 invested, a level that Morningstar considers below average.