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Investing Specialists

10 High-Conviction Purchases by Our Ultimate Stock-Pickers

Our managers are still finding attractive opportunities in a more richly valued market.

Mentioned: , , , , , , , , ,

By Brett Horn | Associate Director

After posting double-digit gains during the first quarter, the U.S. equity markets took a bit of a hit during the second quarter, as hints from Fed Chairman Ben Bernanke that the government would start tapering its asset purchasing program as early as the end of this year sent interest rates higher, the bond market into a tailspin, and reduced the return on the S&P 500 TR Index to a less than 3% for the quarter (after posting 2% gains in both April and May). While the benchmark index rebounded strongly in July, rising more than 5% during the month, investors remain a little skittish (as evidenced by the more than 2% decline in the equity markets this past week). It was against this backdrop that our top managers were making their buy and sell decisions, and with more than three fourths of our Ultimate Stock-Pickers having already reported their second-quarter holdings (and, in some cases, their holdings though the end of July), we've scoured their trading activity to get an early read on how they've been putting money to work in what has been a difficult environment for active managers.

The Morningstar Ultimate Stock-Pickers Team has a position in the following securities mentioned above: DVN. Find out about Morningstar’s editorial policies.