Little guys win big at Morningstar Manager of the Year awards

Boutique managers named best stock managers of 2012

Jan 3, 2013 @ 3:54 pm

By Jason Kephart

mutual funds, portfolio manager, morningstar
+ Zoom

Two boutique firms were the big winners of Morningstar Inc.'s stock fund Managers of the Year awards on Thursday.

Bill Frels and Mark Henneman, co-managers of the $2.6 billion Mairs & Power Growth Fund ticker:(MPGFX), took home the award for domestic stock fund managers of the year, beating larger nominees such as the $42 billion Fidelity Growth Company Fund ticker:(FDGRX) and the $7.8 billion American Funds New Economy Fund ticker:(ANEFX).

The Mairs & Power Growth Fund returned 21.9% in 2012 and ranked in the top 3% of large-cap blend funds.

The fund's strong performance is mostly the result of sticking to its guns. Only one of the fund's top 25 holdings, which make up the majority of assets, has been owned for less than 10 years, noted Morningstar analyst Greg Carlson in an article on why the fund was nominated. The managers also like to have a close connection with the management of the companies they buy; so much so that almost half the portfolio is made up of companies headquartered near its St. Paul, Minn., home office.

Rajiv Jain, manager of the $6.8 billion Virtus Emerging Markets Opportunities Fund ticker:(HEMZX) and the $1.3 billion Virtus Foreign Opportunities Fund ticker:(JVIAX), won the prize for best international manager of the year. The two funds returned 19.6% and 19.8%, respectively last year, putting them in the top quartile and top 10% of their respective categories.

Michael Herbst, director of active fund research at Morningstar, lauded Mr. Jain for his concentrated portfolios and straying far from the funds' benchmarks. He's had less than 15% of overlap with benchmarks recently, Mr. Herbst noted.

Other managers nominated in the international manager category were Mark Yockey, David Samra and Daniel O'Keefe of Artisan Funds and George Evans of OppenheimerFunds.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

Behavioral finance’s big innovations

What’s next for behavioral finance? Bernard Del Ray, the CEO and founder of Capital Preferences offers some unique ideas from the 2017 FPA Conference in Nashville.

Video Spotlight

The Search for Income

Sponsored by PGIM Investments

Recommended Video

Path to growth

Latest news & opinion

Finra ranking brokers in effort to crack down on industry's bad apples

All 634.403 reps have been ranked based on factors such as prior regulatory disclosures, disciplinary actions and employment history.

How to save retirement planning from tax reform

Losing big deductions, even in lieu of a larger standard deduction, may cause taxes to rise in retirement.

Advice firms in a tricky financial position

As revenue growth dips and salaries rise, nearly 90% of firms are at or near capacity.

In a turnaround, Wells Fargo Advisors sees slight bump in headcount

Racked by a scandal in its retail banking unit, Wells still managed to add 37 new advisers in the third quarter, a small number but an improvement nonetheless.

Social Security benefits to increase by 2% in 2018

Largest cost-of-living adjustment since 2012 may be offset for some by higher Medicare premiums.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print