FYI: These managers hold only about two dozen companies, aiming for higher returns amid more risk.
Most mutual fund managers hold shares of dozens, sometimes hundreds, of companies in a bid for diversification.
Then there are those who run “concentrated” portfolios with only a handful of picks. On Wall Street that’s called having conviction. If the right stocks are selected, the fund can post outsized gains, as each holding has more weighting in the fund. If the wrong stocks are selected, it can spell doom.
We decided to look at mutual funds that are highly concentrated and see which stocks were favorites among their managers. Morningstar supplied the data, limiting the list to U.S. equity funds with 25 or fewer investment positions with the fund-research firm’s highest ratings of four or five stars. Morningstar included only the oldest share class for each fund.
Regards,
Ted
https://www.marketwatch.com/story/10-favorite-stocks-of-fund-managers-with-concentrated-portfolios-2018-06-28/print
