Skip to Content
Investing Specialists

Our Ultimate Stock-Pickers' Top 10 Buys and Sells

More volatile equity markets impact the buying and selling activity of our top managers.

Mentioned: , , , , , , , , ,

After U.S. equity markets rose solidly during the first four months of the year, hitting new record highs in the first half of second quarter 2013, things turned much more volatile in May, June, and July. Fed chairman Ben Bernanke hinted that the government would start tapering its asset purchasing program as early as the end of this year, which had an impact on both equity and credit markets. U.S. equity markets did recover from their June pullback, rising more than 5% in July and hitting record highs in early August. But the return of more volatile equity markets had a negative impact on what had been one of the best periods of investment performance and investor inflows for most actively managed U.S. stock funds. It was against this backdrop that our Ultimate Stock-Pickers were making their buy-and-sell decisions for the second quarter and first part of the third quarter.

There were plenty of outright sales during the most recent period, which have happened a bit more regularly this year as many of our managers who are following value-based methodologies have eliminated positions reaching their fair value estimates. The buying activity of our Ultimate Stock-Pickers during the second quarter and first part of the third quarter suggests that, as a group, they continued to find undervalued companies to put money to work. From a sector point of view, energy and technology garnered the most buying interest from our top managers during the most recent period, with health care seeing the most sales activity. As in past periods, the aggregate holdings of our Ultimate Stock-Pickers in both technology and energy remain underweight relative to the weightings of these sectors in the S&P 500 Index, with our top managers continuing to overweight their holdings in the financial services, industrials, health-care, and consumer defensive sectors.

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