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The energy sector has performed well this year as the positive supply-and-demand dynamics fueled a surge in oil prices.
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Among the top contributors this year, the multinational energy company Phillips 66 (PSX) helped the managers realize about a 75% gain in roughly eight months. To ensure good diversification, the fund employs a bottom-up approach to selecting about 40 stocks across sectors. But sticking to the rigorous model that the team has developed over the years has also been a key driver, Hoes said. The market's rotation into value from growth during the first half of the year turbocharged the fund's performance. Companies like Huntsman Corp., up 33% since January, juiced the fund's returns even more. Industrials was the second-largest sector holding within the fund, making up 18.81% of the portfolio. The stock saw a staggering 97% increase in 2021 after growing sales and announcing deals with companies like the mortgage lender Newfi and Apollo. Wells Fargo, the third-largest holding, rebounded from its first quarterly loss a year earlier, and its stock gained over 60%.Īthene, a retirement-services company, was the fund's top holding. Goldman Sachs, the fund's second-largest holding, reported record profits, and its stock has climbed by about 46% from January. It was a good move considering some of the biggest US banks experienced their most profitable year. The fund bet on the financial sector, which made up about a quarter (26.4%) of its portfolio. Morningstar says it's brought in a 20.1% annual return over the past three years and that 2020 was its best year since 2013. A combination of demand resurgence and robust stimulus have led to unprecedented levels of consumer spending.Įdwards and Mueller have run the fund since March 2015, and after some sluggish performance, it's been on a good run for the past three years. Inflation soared to near-40-year highs this year, providing upward pressure on interest rates. Stocks in sectors like financials, energy, and consumer discretionary have done particularly well in a macroeconomic environment favorable for them. Just look at how often the word "value" pops up in the names of the funds below. Growth names have gotten rocked, while value stocks have outperformed. We detail the strategies of five top funds and what their managers are betting on for more gains.Īs Insider's investing team compiled the list of the best fund managers of 2020 last year, those with a very different kind of approach from the names below were taking a victory lap.Īs the world stayed at home, 2020 was the year of high-flying growth funds, with investors like Cathie Wood, Ron Baron, Dennis Lynch, and Nancy Zevenbergen returning the most among their peers.Ģ021 has looked different amid a vaccine rollout and the economic reopening.The top-performing fund managers picked winners in turnaround sectors like energy and financials.After a big year for flashy growth stocks, value stocks started 2021 with strong outperformance.