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Waddell & Reed Accumulative Trounces Peers in 2000

Nimble Waddell & Reed Accumulative outpaces the competition in 2000.

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As 2000 began, many industry veterans admitted to nervousness over the huge runup in technology stocks, but few dared to underweight the sector for fear of missing out on another major move up. Manager Antonio Intagliata, however, was not compelled to join the crowd. Waddell & Reed Advisors Accumulative (UNACX) was underweight in technology all year, in favor of energy and health-care stocks. At one point, the latter two sectors combined to account for more than half of the fund's portfolio. The one-two punch from energy holdings like Baker Hughes (BHI), Enron (ENE), and Dynegy (DYN) and hospital stocks Tenet Healthcare (THC) and HCA (HCA) powered returns of 20.2% for the year. The fund earned a top percentile ranking in the large-cap blend categoryûoutpacing its average peer by more than 27 percentage points.

Intagliata is not one to rest on his laurels, so the fund has already been through major restructuring to start 2001. Financials have become the fund's top sector. Giant diversified financial companies like Citigroup (C) and Bank of America (BAC) hold top positions, while regional banks and insurers round out the fund's financial holdings. These stocks replaced many of last year's winners from energy and health care. Health stocks remain key in the portfolio, but the fund's most recent portfolio indicates that Intagliata was emphasizing pharmaceuticals more than patient care coming into the year. 

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Dan McNeela does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.