The winning strategy of these top-ranked actively managed public funds is to heavily invest in the 'Seven Giants of the US Stock Market' that have caught onto the AI trend.
Those who bought funds in US tech giants also made a fortune.
On July 7th, The Wall Street Journal released the latest edition of the "Winners' Circle" fund performance ranking, most of the funds performed well over the 12-month investigation period from June of last year until June of this year. Of the 1218 funds surveyed in the latest survey, only 15 recorded losses. The 12-month total average ROI of the surveyed funds was 16.5%.
The Alger Capital Appreciation Fund (ACAAX) ranks first with a fund size of 1.9 billion US dollars and a 12-month ROI of 42.4%, led by fund managers Patrick Kelly, Dan Chung, and Ankur Crawford.
Interestingly, four Alger funds secured the top four spots: ACAAX with a return of 42.4% ranked first, followed by ALARX with a return of 42.4%, ALGRX with a return of 42%, and ALVOX with a return of 41.7%.
The outstanding performance of ACAAX and other top-performing funds is mainly due to their investment in artificial intelligence and related technologies, and in one or more of the "Seven Giants of US Stocks".
According to Patrick Kelly, the fund manager of ACAAX, one reason for the outstanding performance of his fund is the overweighting of certain stocks, including...$NVIDIA (NVDA.US)$, $Microsoft (MSFT.US)$ and $Meta Platforms (META.US)$ Another key stock is..., which is also a beneficiary of the AI wave as a liquid cooling company serving not only data centers but also power supplies. This drove its stock price up 250% during the survey period.$Vertiv Holdings (VRT.US)$Gabelli Growth Fund (GABGX), ranked tenth, has a fund size of $1.1 billion. It bought 52% of its positions in six companies including Microsoft, Nvidia, Amazon, Alphabet, Meta, and..., leading to a total return of 39.7%.
According to FactSet, during the ranking survey period, the roi was 9%, and Amazon, Alphabet, Meta, and Microsoft all recorded double-digit gains, among which Nvidia ranked first with a growth rate of 192%. Only..., whose stock price fell by 24%, was the only company among the seven giants to fall.$Alphabet-A (GOOGL.US)$, $Amazon (AMZN.US)$- Meta and$Eli Lilly and Co (LLY.US)$These 6 companies, which also gave it a total return rate of 39.7%.
After all, these tech companies are the protagonists in the AI wave.
According to FactSet's data, during the ranking survey period,$Apple (AAPL.US)$The ROI was 9%. Amazon, Alphabet, Meta, and Microsoft all recorded double-digit gains, with Nvidia leading the way with a 192% gain. Only$Tesla (TSLA.US)$ is the only company among the seven giants to fall, with a cumulative decline in stock price of 24%.
Interestingly, the total return rate (including dividends) of the S&P 500 index in the first half of 2024 was 15.3%. Without the seven giants, the total return rate was only 6.3%.
Jill Carey Hall, senior US stock strategist at BofA Global Research, said,"We see fund managers increasing their shareholding in the seven giants while reducing their holdings in tech giants outside the seven giants."
The funds selected this time only included actively managed US mutual funds with assets under management exceeding $50 million, with records of three years or more, and meeting other criteria. (The survey does not include index funds, sector funds, leveraged funds or most quantitative funds. The results were calculated by Morningstar). As usual, the purpose of this selection is to show how specific investment strategies benefit from recent market trends, not to provide a "fund investment list".
Editor/ping