In 2012, the star performer among sectors was the financial sector. In 2013, it was consumer discretionary stocks. For 2014, which sector can we expect to top the list? #-ad_banner-#While the future is impossible to predict with certainty, we can identify the latest, forward-thinking trends of investing gurus. I looked at the 20 highest-earning asset managers and their common holdings, position sizes, and latest portfolio moves. After screening over 27,000 declared positions, a common theme for 2014 emerged: invest in dividend-yielding health care stocks. (My colleague Joseph Hogue profiled his favorite side play in this… Read More
In 2012, the star performer among sectors was the financial sector. In 2013, it was consumer discretionary stocks. For 2014, which sector can we expect to top the list? #-ad_banner-#While the future is impossible to predict with certainty, we can identify the latest, forward-thinking trends of investing gurus. I looked at the 20 highest-earning asset managers and their common holdings, position sizes, and latest portfolio moves. After screening over 27,000 declared positions, a common theme for 2014 emerged: invest in dividend-yielding health care stocks. (My colleague Joseph Hogue profiled his favorite side play in this space earlier this week.) More specifically, investors such as Warren Buffett, Ken Fisher, and Donald Yacktman have gone big on Big Pharma. Three stocks in particular each found a home in nearly half or more of the portfolios I scoured. What could be the main driver for such heavy investment into pharmaceutical stocks going into the end of last year? The answer is simple: the Affordable Care Act. With the deadline to register being well-advertised over the past year, money managers were ahead of the curve and stocked up on drugmakers. For good reason too, as the government exceeded… Read More