Paul Meeks Ran The Biggest Tech Fund During The Dot-Com Bubble, And He's Worried About Today's Market

Paul Meeks ran the biggest technology fund during the peak of the dot-com bubble and certainly learned a thing or two along the way. He's the chief investment officer at Sloy, Dahl & Holst now, and he's issued a warning to tech investors: the relative outperformance of technology stocks is a dire sign.

First, it's important to note a major difference between technology stocks today and those of the dot-com era. Today's tech companies are "real companies" with a longer track record as private companies, so on an apples-to-apples basis, today's environment isn't like it was nearly 20 years ago, Meeks said during a recent CNBC "Trading Nation" segment.

This doesn't mean investors are in the clear: Meeks is concerned there are "some very high prices out there for unfortunately a concentrated handful of stocks."

These pricey stocks, namely the "FANG" group — Facebook Inc FB, Amazon.com, Inc. AMZN, Netflix, Inc. NFLX and Google/ Alphabet Inc GOOG GOOGL — account for 16 percent of the entire Nasdaq index and are up on average 32 percent this year alone. Apple Inc. AAPL, a recent entrant to the now expanded "FAANG" group, is also up a similar 33 percent in 2017.

Smaller cloud-focused companies are seeing better growth rates than a company like Apple, Meeks said. This merely adds to the tech pro's skepticism, although he isn't ready to call an end to the bull run just yet, as these tech companies could be considered as a "premium-valued" sector.

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