Situation and Context:Stone Henge is planning to set up a new fund for sophisticated accredited investors targeting high network individuals that would like to invest in both Australian and Chinese Startups and early stage ventures. You are asked to first suggest a suitable strategy, industry focus, and a set of companies the fund should consider for their first investment round. You will later work out the target investor categories, size and cost structure for this fund with your managers.

TASK 2: Select an industry from the alternatives in Table 2. You will base this decision on the following screening criteria: Market attractiveness, Potential size, Technology, Threat resistance.

TABLE 2. Chief Strategist Mike recommends the following industries in order of highest to lowest expected return

1. Financial Companies, Expected Annual Return > 60%

2. Oil Companies, Expected Annual Return > 50%

3. Technology, Expected Annual Return > 40%

4. Utilities, Expected Annual Return > 30%

5. Mining, Expected Annual Return > 20%

6. Energy, Expected Annual Return > 17%

7. Healthcare, Expected Annual Return > 15%

Select the most correct industry for Stone Henge's new fund and justify why.