EconomyEditor's PickNewsHealthcare, alternative energy drove best stock funds in third quarter

2 years ago356 min
imageEconomy2 hours ago (Oct 02, 2020 10:41PM ET)

(C) Reuters. FILE PHOTO: A worker cleans the floor of the New York Stock Exchange (NYSE)

By David Randall

NEW YORK (Reuters) – The top-performing U.S. stockpickers of the third quarter made bets on companies ranging from healthcare technology to wind power, helping some funds post gains of 40% or more during a three-month stretch that ended with the S&P 500 suffering its first monthly decline since March.

The $7.4 million WP Small Companies fund posted the best overall performance among actively managed U.S. equity funds with a 45.9% gain through Sept. 29, according to Morningstar Direct data released on Wednesday. Its largest position by far was in healthcare technology company Ontrak Inc, which made up nearly 34% of its portfolio. Shares of the company are up nearly 268% for the year to date.

The $5.2 billion Baron Partners Retail fund followed with a gain of 45.4% for the quarter, slightly ahead of the $480 million Baron Focused Growth Retail fund.

The $95 million Shelton Green Alpha fund posted a 29.7% gain for the quarter, making it the 7th-best fund overall and the best performer among funds that invest based on environmental, social and governance factors. Its largest position was in Vestas Wind Systems A/S, which is up 55% for the year to date.

The outsized gains came in a quarter in which the benchmark S&P 500 rose 8.5% overall. The index dropped 3.9% in September, its first monthly decline since the Federal Reserve launched unprecedented stimulus measures in response to the coronavirus pandemic.

Among fixed income managers, the $3.3 billion AlphaCentric Income Opportunities fund posted the best return among active funds with a 10.4% gain for the quarter. The fund had its largest positions in mortgage-backed securities, including Option One Mortgage Loan Trust and Soundview Home Loan Trust, according to Morningstar data.

The $862 million MicroSector FANG+ 3x Leveraged fund posted the best return among all funds. The fund, which uses options to triple the daily gain or loss of technology giants such as Facebook Inc (NASDAQ:FB) and Apple Inc (NASDAQ:AAPL), gained 94.5% over the quarter, pushing its year-to-date return to 205.5%.

Healthcare, alternative energy drove best stock funds in third quarter

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Leave a Reply

Your email address will not be published. Required fields are marked *