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Special Report

Stocks That Fund Managers Are Buying

Value stocks and funds continue to be in favor.

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Value stocks and funds continue to be in favor, and that's influencing what fund managers are buying for their portfolios. Those in the value camp are sticking to their guns, while at least one aggressive-growth manager is adjusting his strategy.

Longleaf Likes Marriott, GM
The value revival has certainly lifted Longleaf Partners Fund (LLPFX), but the fund's managers remain content with the portfolio's position and haven't been buying many new stocks. They continue to like the prospects of longtime holdings such as Marriott International (MAR), General Motors (GM), and Waste Management (WMI). In Marriott's case, the managers agree that a slowing economy will reduce the hotels' occupancy rate, but Longleaf's management still thinks the firm will grow income by more than 15% this year--a great achievement in the current economic environment. As for GM, the fund managers predict that this company will fight a headwind this year, but they're encouraged by the automaker's cost-cutting plan and after taking non-auto assets into account, this stock looks like a cheap one.

Kunal Kapoor does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.