Million-Dollar Club: Top Managers With Lots of Skin in the Game
May 6, 2015 10:38 AM
Million-Dollar Club: Top Managers With Lots of Skin in the Game
If managers with skin in the game tend to outperform their peers, which ones are the best?
According to recent research from Morningstar, portfolio managers investing more than $1 million of their own money in their funds had a significantly higher success rate than those who invested less, or even nothing at all.
"It turns out that manager investment does have predictive power," said Russel Kinnel, editor of Morningstar FundInvestor and author of the study. "The [success] rate generally progressed higher with manager investment levels."
Overall, the group of managers who oversee Morningstar 5-star rated funds and have more than $1 million of their own money invested in their portfolio numbered less than 100.
Following are the top 10 managers, ranked by their respective funds' five-year performance. Though some of the funds have additional leaders, only managers meeting the $1 million minimum are listed. --Suleman Din
Click through or view as a single page here.
All data is from Morningstar as of March 30, 2015.
According to recent research from Morningstar, portfolio managers investing more than $1 million of their own money in their funds had a significantly higher success rate than those who invested less, or even nothing at all.
"It turns out that manager investment does have predictive power," said Russel Kinnel, editor of Morningstar FundInvestor and author of the study. "The [success] rate generally progressed higher with manager investment levels."
Overall, the group of managers who oversee Morningstar 5-star rated funds and have more than $1 million of their own money invested in their portfolio numbered less than 100.
Following are the top 10 managers, ranked by their respective funds' five-year performance. Though some of the funds have additional leaders, only managers meeting the $1 million minimum are listed. --Suleman Din
Click through or view as a single page here.
All data is from Morningstar as of March 30, 2015.
10. Charles T. Akre, Jr., Akre Focus Fund Institutional (AKRIX).
As the managing member of Akre Capital Management, Akre has managed the fund since its 2009 inception. The fund is open to investors with a $250,000 minimum. Benchmarked against the Russell Mid Cap Growth index, the fund has 88.5% in U.S. stocks, 6% in bonds and 2.5% in non-U.S. stocks. Its top three holdings are American Tower, Markel and Moody's.
9. Jonathan D. Coleman, Janus Triton D (JANIX).
Launched in 2005, the fund is closed to new investors. It has been managed by Coleman since 2013. Benchmarked against the Russell 2000 Growth index, the fund has a 91% allocated to U.S. stocks and 6.5% in cash. Its top three holdings are SS&C Technologies, Carter's and Broadridge Financial Solutions.
8. Frank M. Sands, Jr., Touchstone Sands Capital Institutional Growth (CISGX).
Sands Jr., the chief investment officer and CEO at Sands Capital Management, has overseen the fund since its launch in 2005. The fund is closed to new investors. Benchmarked to the Russell 1000 Growth index, the fund's top holdings include Visa (Class A), Regeneron Pharmaceuticals and Biogen.
7. F. Thomas OHalloran, III, Lord Abbett Developing Growth A (LAGWX).
Inaugurated in 1973, the fund has been managed by O'Halloran since 2001. Closed to new investors, the fund is benchmarked to the Russell 2000 Growth index. Its top holdings are Cavium, LifeLock and Hain Celestial.
6. Kyle Weaver, Fidelity Select IT Services Portfolio (FBSOX).
Launched in 1998, the fund remains open to investors with a $2,500 minimum investment requirement. Weaver has managed the fund since 2009. Benchmarked to the Morningstar SEC/Technology index, the fund's top three holdings are Visa, MasterCard and Cognizant.
5. Joshua K. Spencer, T. Rowe Price Global Technology (PRGTX).
The fund launched in 2000 and remains open to investors with a $2,500 minimum. Spencer has been managing the fund since 2012. The fund is benchmarked to the Morningstar SEC/Technology index. It has a 74% U.S. stock allocation and a 21% non-U.S. stock allocation. Its top three holdings are Google, Amazon and Workday.
4. Alfred W. Mordecai, Joel P. Fried, Theo A. Kolokotrones, PRIMECAP Odyssey Aggressive Growth (POAGX).
The three have managed the fund since its inception in 2004. The fund, which is closed to new investors, is benchmarked to the Russell Mid Cap Growth Index. The top three holdings include Pharmacyclics, United Continental and Polypore.
3. John C. McCraw, AllianzGI Ultra Micro Cap Institutional (AUMIX).
McCraw, a portfolio manager and managing director with Allianz, oversees portfolio management and research for the U.S. Small Cap Growth team. He's been with the fund, which is closed to new investors, since its inception in 2008. The fund is benchmarked to the Russell 2000 index. Its top three holdings are IGI Laboratories, LendingTree and Nautilus.
2. Jeffrey A. Kolitch, Baron Real Estate Institutional (BREIX).
Kolitch has managed the fund since its inception in 2009. It is open to new institutional investors with a minimum $1 million investment. The fund is benchmarked to the S&P U.S. REIT index. The fund's asset allocation has 84% concentration in U.S. stocks and 9.6% in non-U.S. stock. Its top three holdings are Brookdale Senior Living, Hilton and CBRE.
1. Rajiv Kaul, Fidelity Select Biotechnology Portfolio (FBIOX).
Launched in 1985, the fund is open to new investors with a $2,500 investment minimum. Kaul has been managing the fund since 2005. The fund is benchmarked to the S&P 1500 Health Care index and its top three holdings are Biogen, Gilead Sciences and Celgene.
