The 2013 All-America Research Team: Software, No. 1: John DiFucci

Soaring from No. 3 to capture his first top finish is J.P. Morgan’s John DiFucci.

John DiFucci
J.P. Morgan

First-place appearances: 1

Total appearances: 8

Analyst debut: 2005

Soaring from No. 3 to capture his first top finish is J.P. Morgan’s John DiFucci. Investors praise the analyst for his stocking-picking prowess and for being unafraid to go against the grain. “His contrarian style made clients a lot of money,” one buy-sider insists. DiFucci covers 19 names and plans to add to that number as IPO activity warrants. His view of the enterprise information technology segment has been guarded for many years in light of its significant exposure to government spending in Europe and the U.S., where austerity and sequestration are throttling outlays. However, he adds, “software is best positioned among technology sectors given the large amount of recurring maintenance or maintenance-like revenue. The overwhelming majority of profit of a software company comes from this highly sustainable stream.” Businesses that leverage big data and cloud computing should outperform into next year, he believes. DiFucci, 52, holds an MS in engineering from Union College in Schenectady, New York, and an MBA from New York University’s Stern School of Business. He began his sell-side career after a 13-year stint as a U.S. Army engineer and covered software at CIBC World Markets before jumping to Bear, Stearns & Co. in 2003. Five years later, J.P. Morgan acquired Bear Stearns. — Pam Baker