- 2020’s top stock picker as measured by performance has leaned on work-from-home stocks to drive the bulk of gains year-to-date.
- Morgan Stanley’s Dennis Lynch is the portfolio manager of the Morgan Stanley Institutional Discovery Portfolio, which has posted a 12-month total return of 56.2%, ranking No. 1 among active funds that rely on fundamentals and don’t use leverage.
- Here are the top 10 holdings driving strong performance in Lynch’s Discovery portfolio.
- Visit Business Insider’s homepage for more stories.
Despite the turbulent stock market that saw a 20% drawdown in the first quarter and a 20% rise in the second quarter, some stock pickers are thriving amid the volatility.
Case in point, Morgan Stanley’s Dennis Lynch, who is the head of the Counterpoint Global team and a portfolio manager of the Morgan Stanley Institutional Discovery Portfolio. The fund placed No. 1 in The Wall Street Journal’s Winners’ Circle contest.
The growth-oriented fund posted a 12-month total return of 56.2%, and was up 59.3% for the first half of 2020, according to The Journal.
In June, Business Insider talked to Dennis Lynch, who broke down the stocks he sees having the most potential over the next decade. Lynch’s investment style is to shy away from short-term predictions and instead focus on the long term.
Morgan Stanley’s Discovery fund has a five-star rating from Morningstar and $US2 billion in assets, according to Morningstar. The mid-cap growth fund has an expense ratio of 0.74% and requires a minimum initial investment of $US5 million.
Here are the top 10 holdings of Morgan Stanley’s Discovery fund as of May 31, according to data from Morgan Stanley.
Portfolio weight: 3.97%First added to portfolio: Q4 2018YTD return: 139.56%
Portfolio weight: 4.0%First added to portfolio: Q3 2015YTD return: 93.46%
8. Spotify Technology
Portfolio weight: 4.12%First added to portfolio: Q4 2018YTD return: 74.03%
Portfolio weight: 4.14%First added to portfolio: Q3 2018YTD return: 79.65%
6. Zoom Video
Portfolio weight: 4.22%First added to portfolio: Q2 2019YTD return: 283.60%
5. Slack Technologies
Portfolio weight: 4.49%First added to portfolio: Q2 2019YTD return: 38.43%
Portfolio weight: 4.51%First added to portfolio: Q4 2018YTD return: 68.70%
3. Veeva Systems
Portfolio weight: 4.57%First added to portfolio: Q4 2016YTD return: 74.57%
2. Coupa Software
Portfolio weight: 4.76%First added to portfolio: Q1 2018YTD return: 96.27%
Portfolio weight: 5.76%First added to portfolio: Q4 2017YTD return: 148.19%
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