The best investing stories of the week: Hidden market gems from 10 big money managers, exclusive small-cap strategies from top-ranked traders, and a boatload of stock picks
Dear Readers,
US stocks are fresh off their latest surge as vaccine progress emboldens risk-takers that have long been eager for signs of economic reopening. While US-China tensions are once again an albatross threatening to derail market progress, it appears reopening hopes are the main game in town — for now.
Of course, with the market still well off record highs seen as recently as February — and with many areas of the market still scrambling to make up lost ground — there are ample opportunities available to sharp-eyed traders.
The Investing team at Business Insider has been busy talking to top money managers in order to gain some semblance of clarity. Before we get into the usual gamut of coverage, consider the two compilations below that are absolutely teeming with actionable advice.
Then stick around for the best of the rest, divided into the usual categories: (1) expert recommendations and (2) stock picks.
10 big money managers shared with us their favorite hidden gems in the market, and the contrarian trades they're making amid the pandemic
Business Insider surveyed 10 fund and portfolio managers on various aspects of their strategies right now. Money managers shared insight into investments they deem "under the radar," underappreciated market risks, and more. It's hard to imagine a more comprehensive breakdown of investing recommendations available in one place.
Small companies are the biggest post-coronavirus battleground on Wall Street. 4 of the world's best fund managers share their strategies for the space — and the single stocks they love.
We interviewed four of the absolute best-performing small-cap fund managers to see where they're investing in a destabilized market. They each shared strategies and single stock picks that they're betting on to keep thriving.
Expert recommendations
Todd Ahlsten has dominated the market and his competitors for 2 decades. He lays out the 6 stock-picking decisions that reshaped his portfolio after the coronavirus meltdown.
The manager of the Parnassus Core Equity Fund credits his investing triumphs to an approach based on critical businesses and technologies, as well as innovation and the avoidance of highly levered companies. And along the way he's made some prescient market calls.
A 20-year hedge-fund vet shares the 3-part checklist that guides every investment decision he makes — and breaks down a stock pick he thinks could increase 50 to 100 times in his lifetime
Harris Kupperman, the founder of Praetorian Capital Management and CEO of Mongolia Growth Group, isn't a fan of overly complicated and complex investment strategies. Ideally, he says "three bullet points on a napkin is about everything you need in an investment thesis."
A group of healthcare stocks is enjoying the market's biggest post-crash comeback and has returned 1,000% over the past decade. One investment firm says there's even more upside — and shares 3 companies it's buying.
Within the healthcare sector, managed-care companies — including insurers — have recovered the most since the crash bottomed out. Investors are buying these companies for their defensive qualities and can expect further upside to their returns, according to the Leuthold Group.
A fund manager who's quadrupled his competitors' returns for 15 years breaks down his 3 favorite stocks — and his top 3 contrarian ideas
His core equity fund has brought investors 9.8% a year since 2005, easily outpacing the S&P 500's return of 6%. That also puts him in the 99th percentile versus peers.
Single-stock picks
Buy these 13 tech stocks that are abnormally disconnected from Wall Street's expectations for profit growth and poised to rocket higher, Credit Suisse says
Multiple technology companies have become oversold relative to their prospects for growing profits, according to Credit Suisse. The firm pinpoints 13 stocks that could benefit from a quick catchup.
GOLDMAN SACHS: Buy these 14 stocks poised to surge in an economic recovery because of their limited exposure to consumers
Arjun Menon of Goldman Sachs says cyclical stocks usually do best when the economy is recovering. He adds that companies that sell to businesses have an advantage, as consumers may be reluctant to start spending money again.
- MORGAN STANLEY: Buy these 20 stocks built to profit from a mounting inflation comeback that will alter the investing landscape
- BTIG says to buy these 25 under-the-radar stocks that have been neglected for years because they're tempting M&A targets with big upside
- GOLDMAN SACHS: Buy these 21 cheap under-the-radar stocks that offer market-beating growth potential right now
- A fund manager who's doubled his competitors' returns for 15 years breaks down 2 stock picks for a market recovery — including the US airline that may benefit most from the crisis
Best of the rest
- Warren Buffett calls the prospect of negative interest rates the 'most interesting question I've seen in economics.' We had 5 financial experts weigh in on how they could change the investing world as we know it.
- A real-estate investor who generates $342,000 of annual cash flow shares his unique spin on a popular investment strategy that's helped land him 114 units
- A Wall Street equity chief lays out 5 reasons why another 'significant drawdown' in stocks is coming right after the fastest crash in history
- Bill Miller's record-setting fund beat the market for 15 straight years. He explains why he's still bullish on airlines, even after Warren Buffett abandoned the industry twice.
- 'We have a depression on our hands': The CIO of a bearish $150 million fund says the market will grind to new lows after the current bounce is over — and warns 'a lot more pain' is still to come