Top managers were finding new places to put money to work and adding to existing high-conviction ideas in the first quarter.
A mix of conviction and caution has paid off for this 5-star fund.
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.
Vanguard launches international-bond fund, FPA Crescent picks up 2 new comanagers, and managers depart at GSAM, Buffalo, and BlackRock. Also, Matthews to close its Asia dividend fund, and Morgan Stanley set to launch a global quality stock fund.
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.
While rebalancing in a pure form will do a better job of controlling risk, these strategies can help add a contrarian tilt to a portfolio.
Top managers continue to find opportunities for new-money purchases (albeit fewer than in past periods), while taking full advantage of a rising stock market to book some gains.
Cash is not trash.