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Investing Specialists

Ultimate Stock-Pickers: Top Holdings of Top-Performing Managers

Our Ultimate Stock-Pickers Index continues to beat the market even as relatively few of our top managers are outperforming the S&P 500.

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By Greggory Warren, CFA | Senior Stock Analyst

Every investor would like to see the manager of their own actively managed mutual funds beating the market every year, but investors have been left wanting for much of the past decade. This lack of consistent outperformance has been well documented by S&P Dow Jones indices, in its quarterly and annual S&P Indices Versus Active Funds (SPIVA) U.S. Scorecard. In particular, the index group noted that at the end of last year just 17.9% of active large-cap fund managers on average had outperformed the S&P 500 TR index during the past 10 calendar years. The results were worse for large-cap core and large-cap growth managers, with just 15.7% and 10.5%, respectively, outperforming their benchmarks. Large-cap value managers fared much better, with 41.2% beating the S&P 500 Value index during the past decade.

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