Our Ultimate Stock-Pickers' Top 10 Buys and Sells
Our top managers continue to be engaged in good old-fashioned stock picking, with Devon Energy and Charles Schwab standing out as top purchases during the most recent period.
By Brett Horn | Associate Director, Equity and Credit Analysis
For most of 2011, our Ultimate Stock-Pickers were investing in a market that was headed downward, with managers in the mutual fund industry facing the prospect of a significant uptick in investor outflows from actively managed U.S. stock funds. When evaluating the activity of our top managers, we remain aware of the impact that these considerations can have on their holdings, purchases, and sales, as investor outflows will sometimes distort manager activity and limit the usefulness of the data, especially in periods like we saw during the back half of last year. While the U.S. equity markets rebounded nicely during the fourth quarter, with the S&P 500 Index up more than 11% on a price appreciation basis, investors threw in the towel on actively managed U.S. stock funds, pulling out almost as much from these funds during the period as they did during the third quarter of last year (when $49 billion flowed out of actively managed U.S. stock funds). As such, 2011 went down as the second-worst year for actively managed domestic stock fund flows since Morningstar first started tracking mutual fund flow data more than a decade ago, with investors pulling $100.9 billion out of the category (compared with $118.6 billion in outflows during the fourth quarter of 2008).
The Morningstar Ultimate Stock-Pickers Team does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
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