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Investing Specialists

Our Ultimate Stock-Pickers' Top 10 Buys and Sells

Fears about the European credit crisis spreading and an increase in investor redemptions impacted our top managers' purchases and sales during the most recent period.

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By Greggory Warren, CFA | Senior Stock Analyst

As you may recall from one of our recent articles, which took an early look at some of the high-conviction buys and new-money purchases being made by our Ultimate Stock-Pickers, much of the trading activity we were seeing during the third quarter of 2011 was reminiscent of the type of transactions we saw during the fourth quarter of 2008 and first quarter of 2009, when managers were selling what have traditionally been more stable names--like  General Electric (GE),  Wells Fargo (WFC), and  Walgreen (WAG)--to help meet redemption requests. This was in stark contrast to the first quarter of 2011, when more than $25 billion flowed into U.S. stock funds (and $15 billion flowed into international stock funds), allowing most of our managers (who were in net inflow mode) to put more money to work in the markets. That trend changed during the second quarter, though, as investors pulled more than $15 billion out of U.S. stock funds (while surprisingly adding some $4 billion to international stock funds) in response to the debt crisis in Europe.

The Morningstar Ultimate Stock-Pickers Team does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.