With little margin of safety available in today's market, the Gold-rated FPA Crescent manager is waiting for better opportunities.
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Their managers may be skilled, but these funds haven't shared economies of scale with investors.
A mix of conviction and caution has paid off for this 5-star fund.
Top managers continue to find opportunities for some new-money purchases, while taking full advantage of a rising stock market to book gains in shares trading above their fair value estimates.
Top managers were finding new places to put money to work and adding to existing high-conviction ideas in the first quarter.
The FPA Crescent manager takes a pass on long-dated bonds and high yield, but found value in old-school tech firms.
Seeing few opportunities that meet their risk-reward criteria, the team at FPA Crescent --winner of Morningstar's 2013 Allocation Fund Manager of the Year award--is sticking to its discipline and letting cash build, says manager Steve Romick.
Morningstar's Russ Kinnel, Sarah Bush, and Christine Benz highlight their top fund picks for domestic and foreign equity, core bond, inflation-protected securities, and much more.