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Investing Specialists

Top 10 Holdings of Our Best-Performing Ultimate Stock-Pickers

While a majority of our top fund managers are outperforming this year, five of them truly stand out from the rest given their ability to outperform the market over all time periods.

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 By Greggory Warren, CFA | Senior Stock Analyst

With the U.S. equity markets (as reflected by the S&P 500 TR Index) up nearly 20% since the start of the year, more than half of our top managers have picked up enough steam to surpass the returns of the benchmark index so far in 2013. As of last Thursday, 12 of the 22 mutual fund managers on our list of Ultimate Stock-Pickers were beating the S&P 500 TR Index on a year-to-date basis, with outperformance that ranged from 15 basis points for  FMI Large Cap (FMIHX) to 785 basis points for  Fairholme (FAIRX). What makes this even more impressive is the fact that flows for actively managed U.S. stock funds remain in negative territory this year (albeit at levels more akin to what we saw in 2009, the last time we saw market-beating performance from a majority of our top managers, than what we saw during 2010-12, when most domestic fund managers were struggling to outperform the benchmark index). With most managers facing the prospect of ongoing investor withdrawals, they've had to keep a bit more cash on hand than they normally would to meet redemption requests.

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.