What Stocks Have the Top US Fund Managers Been Selling?

Top US fund managers are selling off overvalued stocks, underweight energy, utilities, communication services, healthcare and real estate relative to the S&P 500

Greggory Warren, CFA 1 December, 2015 | 7:25AM
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The third quarter of 2015 was arguably one of the tougher periods we've seen for US stock performance in quite some time, with the S&P 500 Index dropping 6% during the three-month period over concerns about growth in emerging and developing markets.

While the markets have rebounded nicely since the end of September, we're more interested in what our Ultimate Stock-Pickers were doing during the height of the market decline. With all of our top managers having reported their holdings for the most recent period, we've been able to take an early look at the types of purchases and sales our top managers were making.

In most cases, they were not only selling off shares of stocks trading close to or in excess of their estimates of fair value and ploughing the proceeds into existing positions, but were actually taking a stab at handful of new names with wide and narrow economic moats.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Greggory Warren, CFA  Greggory Warren, CFA, is a senior stock analyst with Morningstar.