Five stocks loved by equity mutual fund managers
Managers of equity mutual funds invest for thousands of investors. Where does the money go?
Mutual funds are essentially pools of money contributed by many investors. Those pools are invested by fund managers in things like stocks, bonds, and currencies. There are a wide variety of types of funds. They’re characterized based on what the fund’s managers invest the pool funds in. Some types are: equity funds that invest in common stock; fixed-income funds that invest in government or corporate bonds; and balanced funds that blend both stock and fixed-income investments.
Equity funds also come in many sizes and shapes. An equity fund – one used to buy and sell shares traded on stock exchanges on behalf of many investors – can focus on one country, be regional, or invest world-wide. Funds can specialize and invest only in particular sectors of the economy, such as health care, real estate, natural resources, or biotechnology. They can focus on blue-chip brand name stocks that your grandparents would recognize, or seek out holdings in emerging technologies with the potential for growth.
Goldman Sachs issued a November 2019 report identifying the ten stocks “most loved” by mutual funds. Below you’ll find a profile of five of them. If you’re a mutual fund investor, you may own a piece of some of these. If you’re not, maybe it’s worth considering becoming one.
The apples of the fund managers’ eyes
ServiceNow (NYSE, NOW)
As of December 11, 2019, ServiceNow was trading at $267.85 USD, with a 52-week low and high of $158.28 and 303.17 USD. ServiceNow has a market capitalization of $50.47 billion. ServiceNow is an enterprise cloud computing solutions provider in the healthcare, education, government, and financial sectors. It was founded in 2004 and headquartered in Santa Clara, CA. It has a year-to-date return of 57%.
Salesforce (NYSE, CRM)
As of December 11, 2019, Salesforce was trading at $155.82 USD, with a 52-week low and high of $120.20 and 167.56 USD. Salesforce has a market capitalization of $35.61 billion. Salesforce designs and develops cloud-based enterprise software for customer relationship management, including sales automation, customer support, marketing automation, digital commerce, and salesforce platforms. Founded in 1999, it is headquartered in San Francisco, CA. It has a year-to-date return of 19%.
Adobe (NAS, ADBE)
As of December 11, 2019, Adobe was trading at $303.65 USD, with a 52-week low and high of $204.57 and 313.10 USD. Adobe has a market capitalization of $148.86 billion. Adobe provides digital marketing and media solutions relating to Digital Media (Adobe Photoshop, for example), Digital Experience (analytics and social marketing, for example), and Publishing (eLearning and web application development, for example). Founded in 1982, Adobe is headquartered in San Jose, CA. It has a year-to-date return of 30%.
They can focus on blue-chip brand name stocks that your grandparents would recognize, or seek out holdings in emerging technologies with the potential for growth.
TJX Cos. (NYSE, TJX)
As of December 11, 2019, TJX was trading at $60.32 USD, with a 52-week low and high of $41.29 and 61.28 USD. TJX has a market capitalization of $72.93 billion. TJX sells off-price apparel and home fashion through Marmaxx, HomeGoods, TJX Canada, and TJX International. Founded in 1956, TJX is headquartered in Framingham, MA. It has a year-to-date return of 34%.
Delta (NYSE, DAL)
As of December 11, 2019, Delta Airlines was trading at $55.05 USD, with a 52-week low and high of $45.08 and 63.43 USD. Delta has a market capitalization of $35.61 billion. Delta provides air transportation for passengers and cargo, and also sells jet-fuel and non-jet fuel products through its refinery segment. Founded in 1928, Delta is headquartered in Atlanta, GA. It has a year-to-date return of 16%.
Curious about the other five stocks on Goldman’s 10-most-loved list? They are Alphabet, Mastercard, AIG, Comcast, and VISA.
A deeper dive — Related reading from the 101:
– Are penny stocks worth the effort? | Finance 101
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– 5 best biotech stocks to have in 2018 | Finance 101
Did you buy into any of these companies?