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Investing Specialists

Ultimate Stock-Pickers: Top 10 Best Performing Ideas

While the downturn in the equity markets in the back half of 2015 has been detrimental to our top managers' year-to-date performance it has also uncovered a handful of best ideas for the year ahead.

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By Greggory Warren, CFA | Senior Stock Analyst

Outperforming the market on a consistent basis continues to be a challenge for most active equity managers, and our Ultimate Stock-Pickers have certainly been adherents to this trend the past few years. With most stocks trading at or above our analysts' fair value estimates from the middle of 2013 to the middle of this year, our top managers had maintained a much more cautious approach to the markets, making it difficult for more than a handful of them to make moves that would lead to outsized returns. While market corrections tend to provide active managers with an opportunity to outperform, that has yet to be the case this year, as only a fifth of the 22 fund managers represented on our Investment Manager Roster are currently beating the market, as represented by the S&P 500 TR Index, which was down 0.3% year to date at the end of last week. There has been no index hugging this year, either, as there are few managers that are within 100 basis points of the index.

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.