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Investing Specialists

Our Ultimate Stock-Pickers' Top 10 Buys and Sells

Investor redemptions are starting to impact our managers' purchases and sales.

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By Greggory Warren, CFA | Senior Stock Analyst

As you may recall from our last article, when we relaunched the Ultimate Stock-Pickers concept back in April 2009, we had no idea that the markets were about to take us on a wild ride. After rising close to 30% during the last seven months of 2009, the S&P 500 Index SPX rose another 15% in 2010, but not without its fair share of volatility (as the European credit crisis and its potential impact on the global economic recovery weighed heavily on shares during in the second and third quarters of last year). While 2011 is looking an awful lot like 2010 so far, with the markets rising more than 5% during the first quarter before hints of trouble in Europe during the second quarter led markets downward, it doesn't look like we'll see the kind of rebound we saw last year (when the S&P 500 rose close to 20% from the end of August until the end of 2010). That said, there are still four months left in 2011, and with the markets continuing to be volatile--turning as rapidly on good news as they have on bad news--we could just as easily close out the year in positive territory as we could in negative territory.

It was against this background that our top managers were making their buy and sell decisions during the second quarter (and early part of the third quarter) of 2011. While we continue to see plenty of instances where managers are not moving outside of their comfort zones, sticking with names they already know when putting capital to work, we have seen enough of our Ultimate Stock-Pickers moving into new names to have an impact on our list of top buys during the quarter. This was something we had noted a few weeks ago when we did an early read  on the buying activity of our top managers, noting that there has been a growing interest in technology names on the part of our Ultimate Stock-Pickers over the last couple of quarters.

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The Morningstar Ultimate Stock-Pickers Team does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.